DerNebel said:
amak11 said:
DerNebel said:
amak11 said:
Profit is not revenue, and we are talking about revenue in this thread. I injected it as a comparison, whether you are inclined to agree or disagree with my statement is entirely on you. Nintendo is not in the red. This is fact that you are not understanding. My prediction is they are not in the red and hopefulling making revenue. besides this thread is FOR FACT talking about whether Nintendo would make revenue (which is enough money to pay your expenses) if they are third party. They would not make any additional revenue meaning they would post considerably larger losses. The chances are at Nintendo's current employee number Nintendo would never make profit on third party life.
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You should look up revenue, cause you don't seem to understand what it actually is.
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i suggest you look at it. Revenue is money made to cover your expenses. Profit is revnue less expenses. This thread is about whether or not Nintendo can keep revenue if they went third party. I've done enough business courses and extracurricular business programs to know this.
http://www.answers.com/Q/Difference_between_profit_and_revenue
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Revenue is money made by business activities, simple as that, expenses have nothing to do with it.
So this expressions you used
"hopefully making revenue"
makes no sense. To not make revenue Nintendo would have to literally not sell anything.
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Profit is revenue minus expenses. Which is what a majority of people are here seem to be talking about. There is other ways to not make revenue as well, aka spending more than you make. Revenue is required to keep a business running. You can have revenue and not profit (it's pointless to even try if this the scenario), but you can't have profit without revenue. It's a mutually exclusive pairing.
You're just heavily confused on the subject.
http://www.steverrobbins.com/articles/profit-and-cash-flow-explained.htm
Considering Nintendo's current revenue and profit are based on sales of hardware and software, if they went straight software their revenue stream would be majorly cut off for a few years (you can't make that up on software quickly). Though with that there is now less expenses, but it still would eat at Nintendo for a few years.
