| Claymore said: Nintendo as a company hasn't posted a loss in there yearly financial statement in the last 30 years and made massive profits in the last 4-5 years due to the DS and WII, they're a company that runs on selling hardware at a profit while sony sells hardware at a loss and hopes to make the there money back on the software.
If anybodies at risk of going third party taking all things into account is Sony they're not in a situation where they can ride out another 6-7 years of losses the company simply not in the postion to screw up again. |
This is incorrect. Nintendo posted their first annual loss, last year, in 2011. It made fairly big headlines...common knowledge, but go ahead and look it up. And the last 2-3 years, Nintendo's profits have dwindled as the Wii's popularity has waned, and the 3DS got off to a rocky start, and was sold at a loss up until September 2012.
Nintendo's history of profits is no protection from the present. They are still in a very strong position though in two major regards. 1) They're cash-rich. They have zero debt and enough cash in the bank to go whatever direction they want. 2) They absolutely own the dedicated handheld market. Though, it appears the 3DS's popularity world-wide is waning. If you look at the average weekly sales figures for 2012 vs 2011...you'll find the 3DS sold approx 36,000 fewer units per week than it did in 2011. It only had a YoY combined sales increase in 2012 b/c it was on sale the full year, whereas it only had 10 months in 2011.
Nintendo is strategically still in a good place. They have many options and avenues available to them, that would allow them to recover financially and still remain a hardware company for the long-term. It's just a question of...will they make the right decisions. As of late, Nintendo leadership has made poor decisions overall.
