runqvist said:
I don't know if I should even bother to reply to this one. 10.5b is not much, since Nintendo's direct competitor makes double the amount in a year. Ninntendo could be bought by ms, if they really wanted to. |
It's very simple and I'm not sure why you don't understand what I said. A company like MS is massive (over $70b/year I believe) and has a massive operating expense. They also do much more than just gaming (obviously). Nintendo on the other hand is a gaming-only company and is much smaller than Microsoft in both size and operating expense. While that would not seem like a ton of cash to Microsoft, it is more substantial to a smaller company like Nintendo, because it can sustain them longer given their lower operating cost. Dollar for dollar, Nintendo is in a very good position based on being debt-free and having much more than their annual earnings in cash on hand.
Let me put it to you this way. $50,000 in savings is huge to a family that only makes $50,000/year, but nothing to a family that earns $1,000,000 year. You have to look at the whole picture, not just the size of the number.