Nintendo has enough cash in the bank to run a deficit for 38 years- All is good in the Hood?

[Mythmaker1]

QuintonMcLeod said:

Mythmaker1 said:

QuintonMcLeod said:

Mythmaker1 said:

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!

I've poked through Nintendo's financials in the past, but I've never given much attention to Sony's. Most of what I know about their financial situation is second or third hand, so I'm probably not in a position to say.

With that said, it sounds like you're trying to predict Sony's longeviry using their cash reserves, rather than analyzing their business.

Oh, but I did analyze their  business. I just put it in simple terms. It's one thing to not have money, but it's another thing to be in the red for over a decade. To assume a company is too large to go bankrupt is silly, don't you think? Sony now has announced The Morpheus VR headset for the PS4, but has very few games to promote it with. Why would a company who needs to watch it's financial situation waste even more money developing a device that won't take off? It's very risky, I have to admit, but Sony is doing it. Add that with several other very poor business decisions and you've got yourself a mound of problems.

Pretty sound analysis. Didn't realize Sony was serious about the whole VR thing until I looked it up just now. It's risky, that's for sure, and it probably won't take off, but depending on what they try to do with it might not end up a complete waste of time. Assuming they're thinking along those lines, or for that matter thinking at all.

The point about games might not be too big a concern yet, though. From what I understand, GDC really is more developer conference than press event. It could be that they're trying to drum up interest on the developer side now, and waiting for E3 to actually sell to the press. I don't know if that's how they do things, though.