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czecherychestnut on 21 March 2014
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QuintonMcLeod said:
Mythmaker1 said:
QuintonMcLeod said:
Mythmaker1 said:

Figures from last year:

 http://www.nintendo.co.jp/ir/pdf/2013/130424e.pdf

Figures from two months ago, though Q3 rather than fiscal year, so not as good for comparison:

http://www.nintendo.co.jp/ir/pdf/2014/140129e.pdf

And this proves that Nintendo, infact, doesn't have enough cash in the bank? Is this how the world actually works?

No, but it shows that trying to predict a company's longevity using their cash reserves (which as those links show can fluctuate wildly from year to year) rather than analyzing their business model makes very little sense.

Ah, ok. So, using your logic here (which I'm not saying is bad), I can safely assume with the utmost accuracy, that Sony will go bankrupt very soon. I mean, Sony has no money in the bank and they've been bleeding cash for a decade now. 

Hmm.... Now I think I understand how the real world actually works. Thanks, buddy!

But Sony is a much larger company when it comes to physical assets and ip, so while Sony is losing money, it can afford to shrink for longer than what Nintendo could. ie, Sony has plenty more divisions, assets and IP that they could sell to service debt and maintain available cash. Not saying that is a good approach or that Sony is fine (it isn't) but its more complicated than just cash versus debt.