By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Gaming Discussion - Nintendo hes a higher chance of going bankrupt then Sony - Explaining why

Viper1 said:
All you need to do is look at the financial numbers from each company to tell you which one is closer to bankruptcy than the other.

Nintendo could stop selling stuff for a decade and still pay every employee.

+10

/thread.



34 years playing games.

 

Around the Network

People always point to how much money Nintendo have in the bank. While I don't see them going bankrupt soon, I do see them leaving the console or dedicated handheld market.



kowenicki said:
sales2099 said:
Nintendo isn't 17 billion in debt......


to be fair, neither is Sony... many companes carry debt, they also have cash to hand and assets.

but yes... as I posted in another thread a few minutes ago, the numbers are alarming for Sony the last two years since Kaz walked in.

 

Yes, $17bn debt is correct, but with about $18bn in cash and short term deposits.  Yes that is fairly awful (especially when this debt will be VERY expensive for sony to refinance due to Junk status).

Total liabilities are $127bn, assets just $150bn. 

BUT... and it is a big BUT, net tangible assets are just $10bn, you know what?  that was $20bn two short years ago.  If it drops by the same amount again in the next two years they are technically insolvent.

Cash reserves also down by 30% (from $12bn to $8bn) in just two years.

They need to turn this around very, very quickly. 

Hey, they're trying to party on here! You come on here with you and your "facts" and ruin their party!

 

How dare you. 

Hopefully they can turn it around though, competition is good for everyone whether this guy, http://gamrconnect.vgchartz.com/thread.php?id=179174 thinks so or not.



Of course they have... Sony is already somewhat bankrupt they cant go bankrupt again xD



Clyde32 said:

Sony is selling the PS4 at a loss. 


So was/is Ninty with both wiiu and 3ds (after the first price cut).  On the other hand, the playstation branch of Sony made a huge profit last quarter thanks to ps+ and ps4 games selling well (and being expensive). Wiiu is doing terrible and 3ds was doing well in Japan and not so much in the rest of the world. It has already sold so much in Japan that it's massively down YOY. Thinks are not looking good for Ninty. As for vita, Sony is not even trying any more, so they're not losing any money from it. 



Around the Network
Lawlight said:
People always point to how much money Nintendo have in the bank. While I don't see them going bankrupt soon, I do see them leaving the console or dedicated handheld market.


Care to explain?



Click HERE and be happy 

The success of the PS4 has gotten into some individual's head.



The production cost of the PS4 is 381$, taking into account shipping and handling. Its probably a small loss. A purchase of ps+ for a month or at the very least a game is enough for it to be profitable. As for the R&D cost, it should be cheaper than the ps3 by a long shot since its using modified PC architecture, and can also be made up with playstation plus. PS3 is profitable, thus PlayStation is probably posting minimal loss if not profit.
The 1.1 billion loss projection is all of Sony, save for the TV and sold off vaio division, Sony is showing some profit.
Basically, Sony is in a better position than it has been in the last 9 years so if you're hoping for it to go bankrupt, I wouldn't hold your breath.

As for Nintendo, sure the wii u is losing money, the 3ds might be losing it too but I doubt it. Regardless, Nintendo has less operating costs than Sony. So the Wii and DS made a lot of profit for them, and there previous consoles have been profitable. Granted a PS3 fiasco would be worse for them because they don't have nearly as many assets to sell off and its would be there primary mode of profit, but even then they could TANK the damage with there Cash HP. So they wouldn't need as much of a restructure. However, the diminishing console market is the worst for Nintendo because they don't have the digital prowess of the other two.

Microsoft makes a small fraction of money from Xbox, which is more of a long term investment for them. They profit mostly on industrial contracts and Windows.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

This is why I don't take Sony fans seriously. Threads like this are common. We've had two of them now in I think a week. Smart Sony fans, I know you are out there.  Someday I'll find you.



Jimmies rustled itt