Soundwave on 29 April 2016
| binary solo said: At least half of the points being made are actually negatives for Nintendo's long term health, or shows ignorance of business principles. Sure, Nintendo could lose hundreds of million for several quarters running and still have a lot of money in the bank. But money in the bank doesn't save a company if it consistently fails to make products that turn a profit. Nintendo would be broken up and sold for parts well before the $5Bn disappears, and not least because the shareholders don't want to let that $5bn pile shrink any more. If that $5Bn dropped by 10% over the course of a year and a half so as to cover its losses that would spell major problems for Nintendo as a company. The fact it needs to rely on Amiibo and helpful foreign exchange movements for profit is bad, because it means its core products are failing to add to the bottom line, and worse they acting as a drag on growth. This is bad news for long term viability. When Nintendos most ardent supporters have to resort to arguments that on analysis point to the company having existential problems in its core business then that actually feeds the doom mentality rather than negates it. Fact is, Nintendo is the closest it's ever been to doom because it was always able to rely on the handheld market to compensate for disappointing home console performances from N64, GC and Wii U. But with 3DS aiming at being only a little over 1/3 of DS LTD sales and Nintendo going all in on what seems to be a singe device to cater to both console demographics (hand held and home console) NX is literally a boom or bust proposition for Nintendo. And they way both markets are going for Nintendo bust is as likely or more likely than boom. I've no real idea what the boom/bust line in the sand is for NX, but I would say if they sell much below 40 million units that will be a big problem for them. |
Yeah that's a good point. If their stock price and cash reserves diminshed it could also invite hostile take over bids. I'm sure Apple could make a pretty penny selling Nintendo games on their phones/tablets, if the price was right they'd become a valuable take over target.
