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foxtail on 31 October 2014
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aikohualda said:
SwooshX said:
aikohualda said:
SwooshX said:
Keeping $20 billion in cash just sitting there would be fairly stupid. A person who has $2 million in cash doesn't just let it sit in the bank account either. You invest it.

having a cash reserve is not fairly stupid... money is the most liquid in the company.... if something happens... let's say gaming world crumble in the next 3 years... nintendo would be easier to reinvent themselves using an actual money unlike... selling your investment to a lower value (most of the time)

Having that much of a cash buffer is ridiculous especially for a game-only company. Especially with the stock market way up over the last two years, you're losing money by just letting it sit there. 

who says thats much???? if their total asset is 10 b... you know who doesn't have much cash reserve though? the one who liquidate building to compensate for the lack of liquid cash

Sony is also reducing it's Cash reserves this quarter, just like Nintendo did some years ago but for some different reasons.  

In March Sony had $9.3B USD(1,046,466M yen) in Cash deposits and this quarter it's been reduced to $5.4B USD (610,509M yen).

Does that mean that Sony just lost $3.9 Billion USD of their Cash?  

Not necessarily since they relocated parts of that money into other asset groups.

For reference Nintendo has $4.2B USD (474,297M yen) in Cash deposits and I think that is more than enough for a company it's size.

Though I agree in that we might ask if the $5.4B USD (610,509M yen) in Cash that Sony has is enough for a company of greater size and need of liquidity.

sources - Sony & Nintendo