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

The fact that Nintendo made all those money, by just video games (and i know some other things aswell but most of it from video games) is preatty impressive, when microsoft is one of the biggest PC manufacturers. and Sony with a huge TV and mobile profits. Its as expected. Though ofc sony and microsoft are still just fine. Its also nice to see NIntendo that they have very low debts. I wonder what Kimishima can do with Nintendo from here on



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mountaindewslave said:

it is sort of funny to see how much better shape financially Nintendo is in lately than Sony despite the Wii U not going great. I guess that could be attributed to the 3DS or just very careful business from them over the years (and not dropping the Wii U price! haha)

 

obviously Microsoft is in another league compared to Nintendo/Sony but to be fair its obviously much more than a video game company and in terms of video game numbers alone would actually be beneath them

Is it?

well...

I guess it could be sorta funny to some people...

If you're into that sorta thing.

Yah know, companies filling for bankruptcy and hundreds of thousands losing their jobs...

No judgement.

 

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SpokenTruth said:
theprof00 said:
Not sure what this thread is supposed to be about.
I would hope nobody actually thought that sony is 'beating ms' because of playstation.

I'm curious to know who actually would've said that to be honest.

Not so much beating MS but many people believe that the company as a whole is financially sound just because the PS4 is selling well.  And on the other side many people think that Nintendo is either near bankrupt or going to be forced to merge/go 3rd party just because the Wii U isn't selling well.

The point is that the true health of either of those companies cannot be judged solely on the success of failure of their current products but a lot of people do just that.  You have to assess their solvency.  How much liability and debt they carry against how much cash and assets they hold.

 



And likewise, you cant judge a company solely on its solvency. Majority of the discussion around here is more about where each company is headed with a focus on gaming/sales.

Just because Nintendo is financially sound, doesnt necessarily mean that the company is headed in the right direction.

Perhaps this puts into context, the more negative views of Nintendo/MS in the consolve space as oppose to Sony.

I'd argue though that most people on this site, who have been around for a couple of months atleast, are well aware of the overall financial situation of the big 3.





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SpokenTruth said:
theprof00 said:
Not sure what this thread is supposed to be about.
I would hope nobody actually thought that sony is 'beating ms' because of playstation.

I'm curious to know who actually would've said that to be honest.

Not so much beating MS but many people believe that the company as a whole is financially sound just because the PS4 is selling well.  And on the other side many people think that Nintendo is either near bankrupt or going to be forced to merge/go 3rd party just because the Wii U isn't selling well.

The point is that the true health of either of those companies cannot be judged solely on the success of failure of their current products but a lot of people do just that.  You have to assess their solvency.  How much liability and debt they carry against how much cash and assets they hold.

 



During the ps3 days you might have had a point.

Perhaps you haven't been here a long time, but the financial results they've been posting have been greatly strengthened by ps4 sales. 
Ps4 is indeed a pretty big factor in the equation.

In all truth, it really comes down to how much they've trimmed off the losses from their failing departments like tvs and phones which is what has gotten them here. Having a best selling console with record software sales has helped in that regard.

 

Rather, what I think is happening is that you don't understand the points being made in some threads (of which I have no information), and are looking at them from your own point of view.

For instance, someone can say "sony is doing really well thanks to the ps4". From one point of view, that is actually true, but can be false from another point of view.
Similarly, I can say, "nintendo could be forced to go third party if nx doesn't do well", and from two points of view it can be both true and false.
It's true from the perspective that a company that has released several failing consoles loses "mindshare"...which then compounds the sales the "winner" accrues, which in the spiral of things, makes it that much harder for competition to emerge independently. (like a new console)
But from the point of view that this is about money, no, they wouldn't have to go third party because of money.


Please look at it from this point of view.
The ps4 is doing increasingly well. Some devs have tried the money hat thing from rival console makers, some have tried new ideas, and others have gone sony exclusive. When the dust settles, you'll find that the overall library of the ps4 is going to be nearly uncontestable by any current console. Furthermore, new entrants, unless bolstered by a unique playstyle or advantage will have a hard time competing because of this library advantage.

Generally, advantages erode when generations change. This is what makes the NX's entrance year so precarious, because this is going to be a year in which PS4 is likely to see it's greatest sales so far. Thus, NX must have some fundamental advantage, aka, mobile, cross-console, etc etc. This is what made it so hard for ps3 to fight the 360, because taking away backward compatibility completely removed the library advantage.

 

It's not a zero-sum game though. Success doesn't require the failure of others. But it creates adaptation. This is why the mobile industry got to be as big as it has, and the handheld consoles have been waning.

 

But yes, in terms of nintendo, an NX failure, might make them look at their balance sheet and wonder if third party is actually viable. I guarantee the question has already come up in board meetings. Mobile is probably the direction they went. Mobile is still seen as uncontested space. 
And yeah, MS is probably also looking at a different approach to the market. 

Sorry for the long post.



SpokenTruth said:
binary solo said:
SpokenTruth said:

Not so much beating MS but many people believe that the company as a whole is financially sound just because the PS4 is selling well.  And on the other side many people think that Nintendo is either near bankrupt or going to be forced to merge/go 3rd party just because the Wii U isn't selling well.

The point is that the true health of either of those companies cannot be judged solely on the success of failure of their current products but a lot of people do just that.  You have to assess their solvency.  How much liability and debt they carry against how much cash and assets they hold.

Sony is financially sound. It has a net worth of $22 billion according to your table, which is more than the Assets+cash and short term investments of Nintendo. So people believe Sony is financially sound, because it actually is. 

But it's not just where each company is sitting at this moment in time, it's about which direction they are going. Is the net worth getting bigger or smaller?Once you know that, then you have an idea of risk.

Sony Total Assets:

2012 - $162 Billion
2013 - $151 Billion
2014 - $149 Billion
2015 - $132 Billion

Sony Total Liabilities:

2012 - $131 Billion
2013 - $123 Billion
2014 - $122 Billion
2015 - $108 Billion.

Sony Net Worth:

2012 - $31 Billion
2013 - $28 Billion
2014 - $27 Billion
2015 - $24 Billion

Sony Total Debt:

2012 - $3.5 Billion
2013 - $2.1 Billion
2014 - $3.2 Billion
2015 - $18 Billion

Can you source these numbers?





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ShadowG78 said:
Nintendo's debt is so low that's funny.

 


The more important figure is the ratio of assets to liabilities.



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SpokenTruth said:
theprof00 said:

Can you source these numbers?

http://www.marketwatch.com/investing/stock/sne/financials/balance-sheet

http://markets.money.cnn.com/research/quote/financials.asp?symb=SNE&dataSet=BS



You do know that debt is factored into liabilities right? It's not on top of it.





97alexk said:

and Sony with a huge TV and mobile profits.

 


No really. Just no. Not at all.



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Platina said:
Tagging...

What I don't really get is that if you can pay off your debts, why leave it?

 


It depends on your operating costs... the interest rate on the debt....  etc.



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