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Forums - Gaming Discussion - Corporate Health of Sony, Nintendo and MS

DonFerrari said:
KLAMarine said:
DonFerrari said:

The probability of a company surviving isn't equal to the probability of keeping everyone employed this is why your math on that wasn't meaning much.

But employee salaries are a natural expense for any business during normal operation. I imagine the assets/employee ratio would be at the very least a decent indicator of corporate health. Of course it's not the only indicator but if you have other ideas, please feel free to suggest other possible indicators.

It's a indication of their health, but keeping the jobs isn't a necessity to keep the company afloat. But certainly depending on the costs to fire an employee it may hold more or less significance.

So you agree that my math IS an indicator of health?



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AsGryffynn said:
DonFerrari said:

You assume you have almost no knowledge on the issue but keep doing meaningless math to prove Nintendo is safier or have more armor? If you don't know what you are talking about it's better to just say you don't know.

AsGryffynn said:

As far as I know USA always wanted to swallow the world economy and MS in 90's were already quite big. But what does that have to do with Sony problems? MS never caused much trouble to Sony besisdes maybe pushing them to bad decisions on PS3 (which I doubt, they would probably release the same HW independt of MS being or not in the market) or having to drop the price to fast and losing money (Sony usually drops HW price fast, but yes I can see MS pressure being a decisive ingredient here).

They weren't the juggernauts they are now. Windows was only starting to become popular (Windows 98 was when the rollout started) and the US economy swallowed the world whole during the Clinton years, so American companies started expanding like crazy until the Great Recession. When the Xbox appeared, they weren't that important, but with the 360 they started to pressure Sony into severing what they didn't profit from and created competition to help lower game prices.

They didn't really change anything. I just wanted to clarify they weren't as big back then...

Yes MS wasn't as big and Sony wasn't as small. But why are we discussing this? And that have nothing to do with how well they done on 7th or 8th gen, because MS finances have become even better and Sony about the same, but the outcome is completely different.

KLAMarine said:
DonFerrari said:
KLAMarine said:

But employee salaries are a natural expense for any business during normal operation. I imagine the assets/employee ratio would be at the very least a decent indicator of corporate health. Of course it's not the only indicator but if you have other ideas, please feel free to suggest other possible indicators.

It's a indication of their health, but keeping the jobs isn't a necessity to keep the company afloat. But certainly depending on the costs to fire an employee it may hold more or less significance.

So you agree that my math IS an indicator of health?

In a way I can take it at face value and in some cases you could say that Nintendo is a lot better because their profit per employee is very high.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari said:
KLAMarine said:
DonFerrari said:
KLAMarine said:

But employee salaries are a natural expense for any business during normal operation. I imagine the assets/employee ratio would be at the very least a decent indicator of corporate health. Of course it's not the only indicator but if you have other ideas, please feel free to suggest other possible indicators.

It's a indication of their health, but keeping the jobs isn't a necessity to keep the company afloat. But certainly depending on the costs to fire an employee it may hold more or less significance.

So you agree that my math IS an indicator of health?

In a way I can take it at face value and in some cases you could say that Nintendo is a lot better because their profit per employee is very high.

Profit per employee? I'm not sure what you mean by this.



KLAMarine said:
DonFerrari said:
KLAMarine said:

So you agree that my math IS an indicator of health?

In a way I can take it at face value and in some cases you could say that Nintendo is a lot better because their profit per employee is very high.

Profit per employee? I'm not sure what you mean by this.

You profited 1B dollars with 1000 employees or 100,000 employees... most would think the first operation is a lot better (of course the margin would be more interesting). It's similar to what you done with assets/employee



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

SpokenTruth said:
rolltide101x said:
mountaindewslave said:

its actually not 'healthy' to have any debt at all

its a false concept in society that having some debt is good, and the only reason for that is that it gives creditors and banks something to look at in terms of your history and reliability. if you have debt and pay it off then people consider you trustworthy. nothing more

the concept that 'debt is good' makes zero sense

From a consumer standpoint debt is almost a necessity. Without some sort of past debt getting a house loan would be very difficult. My parents are actually going through this right now. They want to buy a house, they have enough money to afford the house payment, but they have not had any debt in 7-8 years so even though their credit score is pretty high they are still having a bit of trouble. Though they will get it in the end if they keep trying

This is correct regarding consumer credit.  Showing you have a proven record of paying off debts will increase the likelihood of being approved for a loan.  But you do not have to currently have debt, only the history of paying it off.

In face, the best practice is to still pay it off immediately and not carry over a balance.  Utilize up to 30% of your total credit availability (across all credit accounts) and pay it all off after the statement is billed but before interest is charged (usually called the grace period).  This maximizes your overall credit health. In this way, you don't carry over any debt yet get the full benefits of it.

You don't have to have any debt at all when you apply but, as you noted, if you don't have much of a credit and debt history, even though you have the money and the finances to easily afford the loan, they will be reluctant to provide it.

For some companies your credit rating would be better if you were always late and paying good extra interest, but kept paying.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

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SpokenTruth said:
DonFerrari said:
SpokenTruth said:

This is correct regarding consumer credit.  Showing you have a proven record of paying off debts will increase the likelihood of being approved for a loan.  But you do not have to currently have debt, only the history of paying it off.

In face, the best practice is to still pay it off immediately and not carry over a balance.  Utilize up to 30% of your total credit availability (across all credit accounts) and pay it all off after the statement is billed but before interest is charged (usually called the grace period).  This maximizes your overall credit health. In this way, you don't carry over any debt yet get the full benefits of it.

You don't have to have any debt at all when you apply but, as you noted, if you don't have much of a credit and debt history, even though you have the money and the finances to easily afford the loan, they will be reluctant to provide it.

For some companies your credit rating would be better if you were always late and paying good extra interest, but kept paying.

Sorry but that's a myth.  I was taught the same thing growing up but's BS.  It came about because people believed it shows you are paying but so too does paying without carrying over a balance.  But any carried over balance under 30% credit utilization has the exact same credit impact as paying the balance every month.  The only difference in now you owe more money.

And creditors love to receive interests.

It may have nothing to do with it, but my account debt limit was continually stretched but only when my debt grow and I was paying more interest



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari said:
KLAMarine said:
DonFerrari said:
KLAMarine said:

So you agree that my math IS an indicator of health?

In a way I can take it at face value and in some cases you could say that Nintendo is a lot better because their profit per employee is very high.

Profit per employee? I'm not sure what you mean by this.

You profited 1B dollars with 1000 employees or 100,000 employees... most would think the first operation is a lot better (of course the margin would be more interesting). It's similar to what you done with assets/employee

Wouldn't the first case be better?



KLAMarine said:
DonFerrari said:
KLAMarine said:

Profit per employee? I'm not sure what you mean by this.

You profited 1B dollars with 1000 employees or 100,000 employees... most would think the first operation is a lot better (of course the margin would be more interesting). It's similar to what you done with assets/employee

Wouldn't the first case be better?

probably but if your margins is the same or with 100000 employees have better margin? Like 1000 are all very highly paid engineers and the second lowly paid labour that end up costing less??

The only point that would certainly favor the first one is if the paycheck don't differ much they would have less passive/liabilities... but to properly judge more data is necessary



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

DonFerrari said:
KLAMarine said:

Wouldn't the first case be better?

probably but if your margins is the same or with 100000 employees have better margin? Like 1000 are all very highly paid engineers and the second lowly paid labour that end up costing less??

This is why arithmetic exists.



KLAMarine said:
DonFerrari said:
KLAMarine said:

Wouldn't the first case be better?

probably but if your margins is the same or with 100000 employees have better margin? Like 1000 are all very highly paid engineers and the second lowly paid labour that end up costing less??

This is why arithmetic exists.

And where would you apply arithmetics on the suposition?



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."