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Forums - Sales - Is Nintendo doomed? Not likely. Just take a look at how much money it's got in the bank

bloody hell! Nintendo sure have a lot of money :O



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*sigh* I just get tired trying to explain things Kinda like kowen is saying, that is a cherry picked graph fluff piece from an official Nintendo publication. No one is saying that Nintnedo is doomed, but they do have a growth and revenue problem.



An interesting analysis, but seemingly quite out of date.

I'm guessing these figures were pulled from last fall, when Nintendo predicted a $257 million dollar yearly loss. As opposed to now, when their Confirmed losses stand at around $627 million (52 Billion Yen), and are predicted to reach $838 million (69 million Yen) for the fiscal year.

That doesn't really change the argument, which is rather simplistic and doesn't take into account investors, rising production costs, etc., but it does revise the figure from 2075 to 2030.



kowenicki said:
Cash reserves:

Nintendo: $10bn

Sony: $17bn

Microsoft: $57bn

Apple: $100bn


And Nintendo has $0 of debt

Btw, you are now comparing the cash reservs of an only-gaming company with ones that have various divisions (at least Sony and MS).



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile


RolStoppable said:
kowenicki said:
oh and another thing... you know how they said they can make a loss of $275m for the next 40 years?... well thats just silly - it doesn't work even a little bit like that...

...and for information they expect to lost $875m this year. So thats four of those years gone already.

You are just bitter that Microsoft is dead last.


So funny. XD



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kowenicki said:

So they are 3rd then....

we wont go into balance sheets, cashflow and profit margins... it will just get ugly.

and so what if I am comparing microsoft and sony the company with ninty the company... thats business, the divisions are part of a bigger corporation... anything else is a fanboy war.  MS and Sony will move cash, product lines and assets to suit their ongoing  business and their bottom line.

As much as I agree with you, the graph still has a meaning with those specific numbers.

Bottom line, if the gaming division for Nintendo falters, they will need to persist in gaming so as to make sure things turn around. If they don't, Nintendo is in trouble.

For Apple & MicroSony,  if things go bad in the gaming division, they need to look at other business ventures since they are already conglomerate. So even if you're looking at the worth of their whole company, in the context of video games and the likelihood of remaining in the market, the first graph is more representative imho.



happydolphin said:
kowenicki said:

So they are 3rd then....

we wont go into balance sheets, cashflow and profit margins... it will just get ugly.

and so what if I am comparing microsoft and sony the company with ninty the company... thats business, the divisions are part of a bigger corporation... anything else is a fanboy war.  MS and Sony will move cash, product lines and assets to suit their ongoing  business and their bottom line.

As much as I agree with you, the graph still has a meaning with those specific numbers.

Bottom line, if the gaming division for Nintendo falters, they will need to persist in gaming so as to make sure things turn around. If they don't, Nintendo is in trouble.

For Apple & MicroSony,  if things go bad in the gaming division, they need to look at other business ventures since they are already conglomerate. So even if you're looking at the worth of their whole company, in the context of video games and the likelihood of remaining in the market, the first graph is more representative imho.

Exactly the point of the graph.



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile


kowenicki said:
Pavolink said:
kowenicki said:
Cash reserves:

Nintendo: $10bn
  (nil debt) 10bn

Sony: $17bn  ($13.45bn debt)
  3.55bn

Microsoft: $57bn  ($12bn debt)
45bn

Apple: $100bn
  (nil debt) 100bn


And Nintendo has $0 of debt

*Updated

So they are 3rd then....

we wont go into balance sheets, cashflow and profit margins... it will just get ugly.

and so what if I am comparing microsoft and sony the company with ninty the company... thats business, the divisions are part of a bigger corporation... anything else is a fanboy war.  MS and Sony will move cash, product lines and assets to suit their ongoing  business and their bottom line.


Sony looks to be in strange position. Cash reserves will run out if they keep this up. 



 

kowenicki said:

Don't disagree with that, although I think it is slightly simplistic.  Ms ans Sony have synergies from gaming for other business areas that they clearly value very highly.

But that first graph means jack.  It's irrelevant even for Nintendo.  Cumulative operating income? It's meaningless.  I could just about understand a bar chart representing discrete annual net profits, but this chart is a cock waving contest.

What I thought the metric might have provided is some kind of buffer for failure. In other words, through the cummulative numbers, you get an idea as to how much Nintendo has stocked up for funding its gaming activities, and how much MS and Sony might be ready to endure until they withdraw (if ever).

In that sense I saw a meaning in the numbers.

But what are the challenges you're talking about when saying a cummulative graph is meaningless? Is it inflation or some other parameter you have in mind? I don't enjoy asking but to be honest I feel like I'm missing something to understand your issue with the numbers.



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