That's not how the world of finance and business works, but sure: if Nintendo does nothing but lose a quarter billion per year, it will take decades to deplete their reserves.

A publicly traded company can only take so many years of losses paired with shrinking revenue before the stock price drops to near worthless, making it a prime target for acquisition, even if for nothing other than their IP portfolio.

Nintendo could buy back their own stock to retain a controlling interest, but that would deplete their cash reserves while failing to address the problems of falling revenue and magnifying their annual losses.

Nintendo needs to tap into new markets, pure and (not so) simple. They're exploring medical entertainment, presumably not within the consumer space (everyone still remember the E3 Wii biometric sensor that never went gold?) so there are other markets but it remains to be seen whether Nintendo can capitalize on them.

If not, they're better off selling their IP rights to other hardware manufacturers and opening up a Nintendo Savings and Loans branch to become an investment firm with all that surplus that's currently keeping their toy business alive.

Thanks for not being a grammar nazi.

Whether they can last for 38 years at a constant loss or 10 before the stock collapses, the point is that Nintendo can afford to lose this one gen, at least in the home console market.

Even if they could and even if this money was still there, why would they want to? Posting losses every single year till you die would make you look like a complete mess of a company, as well as extremely devaluing consumer views on Nintendo. Not to mention how much the stockholders would get pissed, aren't they already pissy enough for you?

How much does sony have is the real question we know nintendo is going to be around

Sony has none. They have debt (ofc they have on hand money from loans though).

Unlike Nintendo, investors can speculate on it and they need to show investors that they have a sound plan to get more loans.

That is why they are getting rid of the bleeding divisions. I believe they will stay afloat for now if they sell off those divisions and the PS4 continues to be highly sucessful.

They are far from breaking even though. Nintendo is in a far better position. Microsoft is not as patient. Funny how despite beeing the worst one financially, sony is leading the next-gen market.

Around 10 billion, but they also have debt of around the same value. So they while not terribly in the red, they basically have nothing left which is why they are selling buildings and other stuff left and right. 

Not that a comparison with Nintendo would make any sense as Sony is in a hell if a lot more businesses. Sony can swallow fails easier than Nintendo. If a Nintendo console fails, half of the business comes to a complete halt. If a Sony consoles fails, 1 % of Sony is affected. Maybe more, maybe less, I don't know, you get the idea.)

Was that a Beast Wars reference?

tag

Yeah but it would be completely stupid to expend that 6 billions covering up loses and to repay shareholders ,thing that they won't do anyway. The point is to put preassure on the company to do something different and to risk in new areas,like mobile ,I really doubt that Nintendo keep doing the same next years,the red numbers will increase and the alarm will go from yellow to red if isn't in red already.