About Twenty Companies Including Sega Made a Bid on Atlus, 20 Billion Yen Offered

[ishiki]

AlphaCielago said:

bananaking21 said:

TheLastStarFighter said:
I would pay $200 million for them probably. If I was Nintendo or Sony that is. Especially Nintendo, they have the cash and need the development capacity.

and you would never ever make the money back. no doubt atlus is a quality company, but their games barely sell. thats why it would be really stupid for Sony or nintendo to buy them and it would be the stupidest thing ever for MS to buy them. they simply wont be able to make enough of a return on their games, and limiting them to one platform certainly wont help

Their games selling 1 million or more have nothing to do with anything. If the company has remained profitable then that is because they know how to handle their given or own money. Then there is also the possibility of their higher tier franchises being bigger sellers and can therefore increase the install base.

That's not how it works, there's opportunity cost, net present value, and IRR and other things to consider consider. Let's say there's 20 billion yen  to invest. You only have so much money to invest. So lets say for simplicity there's 2 possible investments

Atlus
lets say investing in atlus will take 8 years to for the investment to become postitive after net present value of costs of the investment equals the net present values of the benefits. But maybe over 20 years you have a higher IRR than you would with option B, but 20 years is a really long time to consider.

Option B, investing in games, space shuttle whatever
Makes you money in 3, and then you can reinvest, and determines plans from there.  This is more of an instant gratification investment

It's not near as simple as this company makes money, lets buy them. And the actual discussions have even more variables to consider.
There's also no guarentee at atlus that the talented people will stay (like what happened to  rare) and then all you have is niche IP's without the creators that people bought them for that don't sell them a million copies.