BengaBenga said:
Resident_Hazard said:
Rath said:
A companies value is dictated by the share price and for a time (and possibly still) Nintendo was far more valuable than Sony. Basically people would pay more to own 1% of Ninty than for 1% of Sony, including fixed assets. Plus, Nintendo is almost certain to have far larger cash reserves with the massive profits they are currently making. |
Having higher value stock doesn't mean Nintendo is a bigger company than Sony. Nintendo is surely rolling in dough right now, but they've always been a financially responsible company and have won awards in Japan for the effeciency with which they do business. It's finally paying off for them. But as far as company size goes, Nintendo is nothing compared to Sony. Nintendo does not make computers, electronics, TVs, DVD/Blu-Ray players, nor does Nintendo make movies, own television companies or music labels. Sony does all of that. Nintendo's involvement in television and movies is far, far, far outweighed by the influence Sony has in those areas. Having a higher stock/market value does mean exactly that it´s a bigger company. Value stock x number of stocks is the value of your company. So as far as company size goes, yes Nintendo is a bigger company. Probably not in employees and factories, but in worth, yes it is. So with all Sony´s businesses combined it´s still smaller than a company that focusses on only one. (I know hard to believe, but very true) I think it's debatable which company has the larger cash reserves. Currently, Nintendo is pulling in tons and tons of profit--money in the bank. Sony is too, just not on the PS3. Sony can fight to bring success to struggling parts of it's business because it's making money in other departments--like movies, television, or music; or some of the electronics or computers they make. The only way Nintendo is beating Sony is in percentages: They are making more money for every Wii and DS sold than Sony is for every PS2, PS3, and PSP sold. Percentage wise, Nintendo is more profitable now, but I'm willing to bet that on a whole, Sony is--overall--making more money from all their branches combined. Wrong again, Net profit: Sony Q1 - Q3: (whole Sony group) 200 billion Yen, Nintendo Q1 - Q3: 259 billion Yen. Just look at the financial reports of the companies. Nintendo's intelligence with their finances goes up their with their creativity and different thinking as why they are a hallmark of the video game industry. It kept them afloat during fiascos like the Virtual Boy and relative failures like the N64 and GameCube. Through it all, they remained profitable. Market share of the video game industry doesn't mean anything about a company's size. Sony had most of the market share last generation, but no one would ever stand up and say that they were a bigger company than Microsoft. The attach rate for their console was higher, that's all. |
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Replying to the red:
Nintendo's Net Income: $1.4 billion
Sony's Net Income: $1.071 billion
Microsoft's Net Income: $14.06 billion
Nintendo's Revenue: $7.8 billion
Sony's Revenue: $76.201 billion
Microsoft's Revenue: $51.12 billion
These are based on 2006~2007 figures, and while Nintendo is ever so slightly more profitable, because they are effecient with the technology they sell, Sony is a much, much richer company. The revenue is the number to pay attention to. That's money Sony has to throw around.
Also:
Nintendo employees: 3,586
Sony employees: 163,000
Microsoft employees: 79,000
Based entirely on the number of employees, Sony is the bigger, richer company--they have to be--in order to employ that many more people. The only thing I was wrong on was MS being bigger than Sony, looks like Sony really is the major player in the video game industry these days. The most employees, most money, and they have their hands in all sorts of tech stuff. Nintendo is the smallest company in the console game, by a long shot. Microsoft has the highest income (wow), but Sony is all-around the bigger company.
Stock prices only indicate a company's current value, not it's size.
Income over a couple quarters does not indicate a company's size, either.
Nintendo's net profit is higher, most likely due to the fact that they are selling far fewer products: Mostly the Wii and DS, both of which are sold above cost, so Nintendo rakes in profit from them and software. Sony, however, is losing money on the PS3 (a lot of money), and sells the PS2, PSP (estimating) at roughly the cost of production, while the PS3 is sold well below. On top of which, they finally won the HD war, which was no doubt costing them an arm and a leg with all the special deals and Blu-Ray movies that were practically given away to sell the product. Remember, Wal-Mart had a "Buy a PS3 get 10 movies free" sale and that no doubt cost Sony a pretty penny. On top of which, UMD movies essentially flopped for the PSP. Sony also spends more money on advertising that Nintendo does because Sony has a lot more products to advertise, and PS3 or PSP commercials seem more common on TV than those of the Wii or DS.
Sony is a much bigger company. Much less effecient than Nintendo, but bigger still. Sony may have a slightly smaller Net Income, but Sony also spends a helluva lot more money than Nintendo--because they have that much to spend.
