| MohammadBadir said:
4.Nintendo let all the money they got in the Wii/DS era just slip away. Sure they have around 10B$ in assets right now, but they had like, what? 80B$ in the Wii/DS era? Why'd they just waste all that money? They could've used it to handle losses like Sony and MS do, they could've used it to hire better R&D devs, they could've used it to open more 1st party studios! They let all the money they made slip away for crying out loud! |
No no, they never had that much assets. Nintendo's assets peaked at 1,337 Billion Yen in 2010, and dropped to 1,130 Billion Yen as of September. So they have 207 Billion Yen less than their peak from Wii/DS. About half of that decrease comes from the buy back of Yamauchi family's shares of Nintendo.
You're thinking about their stock valuation, but that is not assets. Stock valuation is based on speculation. When Nintendo was printing money with Wii/DS, Nintendo's future valuation was many times their asset value. Now that Nintendo has struggled to make profits, investors price the shares at very low future value.
