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Forums - Nintendo - Before you start the 7th billion Nintendo is Doomed thread

Uabit said:
they will end making only handheld systems. Since Wii their home consoles suck ass.

Guess I'll keep enjoying my suck ass console.



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Mr Khan said:
OdinHades said:
morenoingrato:
Frankly, I am getting sick of that BS.

If they have so much money, invest it!


This. As a consumer I couldn't care less about Nintendos profits. I will get whatever gives me the most for my money. And that's not Nintendo at the moment. 

 

Also, if Nintendo would be losing money for like 5 years straight, the stock price will go to shit which would make a hostile takeover extremely likely. So in the end, they are not doomed. But they're also not safe.

If your stock price goes in the tank, you do a buyback (just as Nintendo has). Hostile takeovers make for good TV drama, but they are HARD to pull off in real life.


Of course it's hard, but it gets easier if a company isn't successful and is losing money. Buyback is a possibility to prevent hostile takeover, but Nintendo doesn't have enoough money to buy all stocks back. about 10 billion in cash vs. 16 billion market cap so they're lacking 6 billion dollars to get their company back 100 %. Also, if Nintendo is buying back too many stocks, they will have a harder time finding investors, which is pretty important when your cash is melting away. Now I don't know how many stocks are out there and who are the main stockholders, but a takeover isn't completely impossible. Imagine Microsoft getting desperate because of bad Xbox sales. They have money and power and could possibly pull this off if Nintendos market cap goes down considerably in the next few years. 

It is very very unlikely and I'm not saying it will happen, but it isn't impossible by any means. You simply cannot know what will happen. Calling anything impossible is quite short sighted. Be it Nintendos doom or Nintendos invincibility. The truth is somewhere in between.



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Its not about the money! Its about the sales... If people cared about the status of the company, there would be far more Sony doomed threads cause of how many divisions they shut down and how many employees they fire and how many buildings they sell but this is a gaming site at its heart and most people care about how they are doing in games rather than the status of their company

But with that being said, it is annoying as fuck... And if anything, people should always say wiiU is doomed rather than Nintendo is doomed cause Nintendo isn't doomed for at least another 20 years or a decade at its worst but the wiiU is doomed for sure when you compare it to the ps4



                  

PC Specs: CPU: 7800X3D || GPU: Strix 4090 || RAM: 32GB DDR5 6000 || Main SSD: WD 2TB SN850

People are underestimating how quickly a company can lose money in bad times. Before the 3DS managed to start building success they lost $330 million in 3 months. If, hypothetically, both Nintendo's next handheld and home console were to fail like the WiiU is (and how the 3DS used to be), then they could potentially lose an awful lot more than $250 million a year.

Nintendo are going to be fine, they always find a way. But that fact is still pretty dumb :P

Edit: I should point out my post is about how silly this "fact" would be even if the world was as black and white as it seems to think. In reality there are multiple other factors that can come into play (stock, market cap etc).



Those greedy bastards... they should spend all their resources on AAA games. Oh and those cinematic games that are the rage these days.



"I've Underestimated the Horse Power from Mario Kart 8, I'll Never Doubt the WiiU's Engine Again"

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LiquorandGunFun said:

Lets see....
2014 to 2052 = 38 years
38 years @ 250,000,000
9,500,000,000? Really? 9.5 billion? Keep believing everything on the internet.

http://www.forbes.com/companies/nintendo/

Do you mean Yen? idk what that would be but this makes no sense.

Edit: opps read it wrong, I guess so but they would have to sell off about everything.


They have over 11 billion in cash on hand, which means that yes, they could have a net loss of 250 million every year and survive to 2052 without selling off ANYTHING.



Then aren't they technically doomed?



Old news is old.



What a great business model; I'm surprised more companies don't try it out.



In the business world cash goes very quickly.