Ali_16x said:
And what exactly am I suppose to do with that link? I mean if you have something, then go ahead and post. I never said Mobile had anything to do with profits, it had to do with Stock. And regarding what you had to say for stock price, what? What you said makes absolutely no sense. If you look at any mobile announcements you can see HUGE increases. The ONLY reason the Nintendo stock is so high is BECAUSE of mobile announcements. I mean, if we didn't have those mobile announcements,are you ACTUALLY going to say that it would have been the same price as now, just from the Switch alone? Oh and we did see increase in Pokemon sales and 3DS sales in the west because of Pokemon Go, so obviously it did impact Nintendo's profits.
On a seperate note, all this thread shows is that Sony as a whole is extremely undervalued in the stock market. The PlayStation business is way bigger than Nintendos, and PlayStations digital revenues is bigger than Nintendo as a whole. |
Playstation revenue was bigger than Nintendo as a whole in 2016 when Nintendo was basically in a holding pattern for Switch. And since a lot of that revenue came from third party game sales, which has a lower profit margin, which is why Sony's revenues are way higher than Nintendo's, but profits are closer. Lets see how these numbers change at the end of this year.
Of course, revenue and the size of the playstation division don't mean all that much as they represent a fraction of Sony's overall business. Their movie business is bleeding money (which is awesome since it got Spider-man into the MCU), their cell phone line has yet to make a dent in the market, their TV business is struggling, cameras are slumping in general (although the components are doing fine), and I'm pretty sure they no longer have a PC business to speak of.
Overall, Nintendo's assets minus their debts are in the same ballpark as Sony. The key difference is that Nintendo has enough money to cover their short term liabilities about ten times over. I don't know where you got the idea that Nintendo wouldn't be able to cover R&D from Switch, but even if they made literally 0 dollars from the Switch, they'd still have had around ten billion dollars. They would have had to reassess a few things, but they wouldn't be anywhere close to bankruptcy.
Sony on the other hand doesn't have enough short term assets to cover their short term debts. Which means that in the event of a rough year, they either have to borrow money or sell off long term assets. If the PS4 had failed, Sony actually would have been in trouble, since that is one of their few divisions that is doing well and keeping the company profitable.
Sony may have more potential upside simply because they have a hand in more things. But in terms of which company is more likely to be around in 10 or 20 years, Nintendo is a much safer bet.
