Nintendo hes a higher chance of going bankrupt then Sony - Explaining why

[jiykong]

no Nintendo does not have a chance of going bankrupt before Sony

Breakdown:

Definition of bankruptcy: When you have debt to pay back, but do not have the cash to do so. Many people tend to believe that this means Nintendo will stay afloat until the cash reserve runs out. This isn't the case, As long as people are willing to lend Nintendo Cash, Nintendo won't declare bankruptcy.

Example: US Government. US Government have enormous amount of debt + Obligations and so if all debts are forced to be paid, then they should declare bankruptcy. But due to the fact that investors are still willing to lend to the US Gov, the US doesn't declare default on their loans and uses the loans from new investors to pay off old loans.

So looking at the situation the real question becomes, who has better credit?

One of the key aspect of determining this is IF the company does default, which company has a more desired asset?

Personally, It is nintendo.

Why? Because Nintendo's Disney. If Nintendo runs out of cash reserves and require loans to operate, the chances are that nintendo themselves are going to withdrawal from the expensive console market or their creditors will require them to. Once thats done, Nintendo is easily back on track to profitability.

Sony on the other had is different. They have uncharted/GOW/etc. but their franchise is nothing compared to nintendo. EG. Which one's more popular? Universal Studios or Disney land?

Also Sony's glory days in the hardware industry is no more. Sony for the most part was known for their computers/tv's/household electronics. The console market is a small part of the sony franchise just like how Xbox division in Microsoft is nothing to their bottom line.