Corporate Health of Sony, Nintendo and MS

[DonFerrari]

Eddie_Raja said:

KLAMarine said:

Eddie_Raja said:It is already that bad my friend.  One more descent into lower sales and things will start to look hopeless.

I don't recall Nintendo ever posting a loss to the tune of $1.2 billion.

Eddie_Raja said:

Not sure why you keep denying that the massive size of Sony/MS gives them armor.

Because WHEN YOU DO THE MATH using OP's figures, you'll see Sony's armor is not as thick as you think.

Let's do the math using the following formula:

cash and short term investments + assets - liabilities - debts = "armor"

Nintendo:

$7.6 billion + $11.3 billion - $1.5 billion - $103,000 = $17.4 billion

Sony:

$15.7 billion + $132 billion - $107.6 billion - $18 billion = $22.1 billion

Microsoft:

$96.5 billion + $176.2 billion - $96.1 billion - $7.5 billion = $169.1 billion

As one can see, Sony's "armor" is much much closer to Nintendo's "armor" than to Microsoft's "armor". Microsoft's "armor" is huge compared to Sony's "armor", they're not even comparable.

With that said, the problem for Sony is that Sony is a much larger company than Nintendo. Sony employs about 130,000 people ( http://www.sony.net/SonyInfo/csr_report/employees/info/ ) while Nintendo employs about 4,000 to 5,000 ( http://www.numberof.net/number%C2%A0of%C2%A0nintendo%C2%A0employees/ , https://www.macroaxis.com/invest/ratio/NTDOY.PK--Number-of-Employees ).

Sony has more people on the payroll than Nintendo, they have more wages to pay, more facilities to pay for but only have about $4.7 billion more in "armor" than Nintendo and about $147 billion less "armor" than Microsoft.

The reasoning above is why in my opinion, Sony is the weakest among the three.

 

I'm not a business major so my opinion is rather worthless and if any business majors reading this post detect faulty reasoning in my logic, please let me know.

-Omg you just keep ignoring my main points.  When did I say Sony hasn't F'd up?  NEVER - they messed up huge.  I never said Sony is insanely better.

-My main point, from the get go is that Sony is not weaker than Nintendo longterm.  Your math proves that.

-What you are not paying attention to with Nintendo is the trajectory.  Yes they have never lost as much money as Sony up until NOW, but recently they posted losses - an unheard of thing for Nintendo.  That would be like if Apple posted losses.   

-Right now Sony is doing ok, and more importantly Playstation is doing crazy well (Which is what really matters).  Sony's hardest times are over and so it is silly to keep acting like they are falling apart.  They survived, and it is over.  If Nintendo F's up one more gen we will sit and see how well they survive, and they have far worse chances than Sony did if it gets bad.

-One thing you have to remember is that you are looking at a Sony AFTER they survived a crash.  They started with far more than Nintendo has now.

I think there is overall a lot of potential for the NX to revitalize Nintendo, and so I am by no means saying they are doomed.  What I am saying is that they can't keep screwing up for much longer.  They need to get their crap together before things get terrible because they cannot survive the blow Sony took 7 years ago.

Situation of assets and liabilities were a lot better in 2000.