Soundwave said:
Pretty sure you are wrong there. It's $661 for the Mariners sale, this is accounted for as a complete profit total actually, as it is net funds coming in. You don't subtract the original price from 1992, that was something for the 1992 financials. Technically actually I believe it was Yamauchi's personal money that purchased the Mariners to begin with, it wasn't taken out from Nintendo's company assets, I think they may have used the Nintendo of America branch in the purchase because at the time there was a big bruhaha over a Japanese businessman taking over an American baseball team. Ownership of the company was transferred over to Nintendo of America towards the end of Mr. Yamauchi's life in prepartion for his passing. So it's $661 for the Mariners (which basically is like a gift from Mr. Yamauchi) + Nintendo's operating profit from the game business, which is only $264 million. You can't really call that a $500 million profit minus the Mariners. This actually a textbook example of why companies are forced to disclose operating profit and net profit seperately, because companies would easily be able to lie/mislead about their profitability in situations just like this. |
How can be complete profit if they paid for Marines $125m? If you pay for something 5m, and than you sell that late for 5m, your profit is actually 5m, not 10m.
Lawlight said:
$661 from the Mariners sale. So, $259M in profit. Of course a bunch of that came from Pokemon Go, which doesn't leave much for the core gaming business. |
Yes, $660m, but those $660m are not all profit, they paid $125m for Marines in 1992.
