Corporate Health of Sony, Nintendo and MS

[DonFerrari]

Teeqoz said:

spemanig said:

ShadowG78 said:
Nintendo's debt is so low that's funny.

I thought it was a typo at first read. I don't see why they don't just pay it at this point.

Even the most profitable companies take up loans, because sometimes you need short term cash to cover expenses, and it makes no sense to take that cash from your main reserves. This is the same reason the country I live in (Norway) can run a surplus on its federal budget, but still takes up loans to cover costs. It's not as simple as a "They have enough money to pay it, so why don't they."

Also corporate bonds don't work like that. It's not like you can pay it whenever you want. They have due dates and set interest payments for years.

Government debt is a little more complicated... A lot of the reserve is used to manipulate the market in some way and play with exchange rates, and serve as cushion. So they can't dispose of that money and need external money. Other times like in Brazil they take money from banks with like 14% interest and lend subsized to "improve industries" and that money is lent by the same bank by 4% interest rate, and basically the bank is making 10% profit with a money it doesn't even own.

On company side, you could see on simpler term that a investiment have 25% return rate while the lent money will cost 10% on that period, so it's better to own money because it'll generate profit to cover the cost of it... That is why MS even having much more cash than Ninty still pick a lot of loans on the market... Ninty is probably too risk adverse and preffer to sit on their cash and invest very little and lend even less.

Swordmasterman said:

DonFerrari said:

Eddie_Raja said:

-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.

Before the Crash,  Sony, were  much bigger than Microsoft, now they are backing up, SCE, became SIE, to show that they will invest more on Playstation.

They were true Juggernauts before LG and Samsung started flourishing and Apple put iPod in the market.