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Forums - Nintendo - Nintendo has enough cash in the bank to run a deficit for 38 years- All is good in the Hood?

kirby007 on 17 March 2014

nice avatar spn



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Nem on 17 March 2014

I´m gonna be honest. If there was an industry company i would like to work on, its Nintendo. They give their workers stability and the result are clear with great game after great game.

They are a hit and miss company, but with this financial fortitude they can survive until they hit again.



Jizz_Beard_thePirate on 17 March 2014

Dooomed......................................... 38 years later



                  

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Adameh on 17 March 2014

But but but Nintendoom



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sales2099 on 17 March 2014

That doesn't take into account their stock prices falling the longer they post a loss. This raises many problems itself, including being vulnerable to a hostile takeover.



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zelda09 on 17 March 2014

Good see vgchartz stepping into reality



kirby007 on 17 March 2014
sales2099 said:
That doesn't take into account their stock prices falling the longer they post a loss. This raises many problems itself, including being vulnerable to a hostile takeover.

that totally depends on whose holding the shares



 "I think people should define the word crap" - Kirby007

Join the Prediction League http://www.vgchartz.com/predictions

Instead of seeking to convince others, we can be open to changing our own minds, and seek out information that contradicts our own steadfast point of view. Maybe it’ll turn out that those who disagree with you actually have a solid grasp of the facts. There’s a slight possibility that, after all, you’re the one who’s wrong.

DanneSandin on 17 March 2014

If Nintendo ever would post losses for 40 years, they're clearly doing something wrong, and they would disappear as a company



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bubblegamer on 17 March 2014

Article is devout of any intelligence, alien or local.



Mythmaker1 on 17 March 2014
spurgeonryan said:

Nintendo has enough cash in the bank to run a deficit for 38 years


ON March 17th, 2014 In Games, News

Failures have unfortunately become a staple of the gaming industry. In today’s world, all it takes is one AAA title failing to meet sales expectations and studios are shuttered, people are laid off, and beloved franchises are never heard from again. This is one reason why the game industry at large likes to focus on what works; Call of Duty and Battlefield annually make both Activision and Electronic Arts money hand over fist as gamers line up to continually buy the same thing.

It’s this attitude of gamers knowing that games have to be successful in order to prevail in today’s economy that turns many people to screaming about how doomed a company is because titles like Donkey Kong Country: Tropical Freeze have done well, but not as well as hoped. The difference here is that Nintendo does not operate like gamers expect game developers and game publishers in the West to operate. The company has always been fiscally conservative, but a recent article in the UK’s Nintendo Gamer magazine points out just how well Nintendo has managed to save money.

Buried in reams of financial data is the revelation that Nintendo have 812.8 billion Yen (£6.7/$10.5 billion) in the bank – enough for it to take a 20 billion Yen loss (£163/$257 million) every year until 2052. Then there’s almost 469 billion Yen (£3.8/$6.0 billion) held in premises, equipment and investments. When that runs out – we’re in the year 2075 by this point – they’ve got some of the most valuable intellectual property in gaming to sell off before the company goes out of business.

So yes, while the Wii U isn’t doing as well as Nintendo intended upon release and titles like Pikmin 3, The Wonderful 101, Super Mario 3D World, and Donkey Kong Country: Tropical Freeze haven’t sold the numbers originally intended, Nintendo is far from failing as a company. Any one of those critical games failing could have spelled the end for a Western developer, but Nintendo doesn’t operate on the same business strategy as most of....

 

See rest of story at...here?  http://wiiudaily.com/2014/03/nintendo-not-doomed/

It never ends...

First, this article came out almost two years ago (June 2012), and the figures it was quoting were even older (March 2011). A "recent article" indeed.

Second, that figure, 812.8 billion Yen. Two years later, that same figure on their balance sheet...478.8 billion Yen.

This article was out of date before it was even written, and it was an amateurish analysis when it was new. It has no relevance today, and people really need to stop pointing to it.



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