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

palou on 20 January 2016
mountaindewslave said:
Ruler said:
Revenue is more important

Sony: ¥8.215 trillion which is US$ 70 billion
Nintendo: ¥549.780 billion
Microsoft: US$ 93.58 billion

 


revenue is useless if you're working on an operating loss in the process of creating and selling your products

 

If you're Tesla, Revenue AND profits are unnecessary to attract investors...





Bet with PeH: 

I win if Arms sells over 700 000 units worldwide by the end of 2017.

Bet with WagnerPaiva:

 

I win if Emmanuel Macron wins the french presidential election May 7th 2017.

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CosmicSex on 20 January 2016
mountaindewslave said:
CosmicSex said:

Revenue alone doesn't tell you everything but it is critically important... because without it you literally have nothing. 

Depending on what your goal is, revenue is everthing. Revenue can become profits or used as a buffer if you want to invest and grow. 

If you are budgeting for a loss and your Rev is higher then expected... BAM!

 


revenue as a stat on its own is useless though. there are tons (and I mean tons) of billion dollar companies out there with, in some cases, tens of billions of dollars of sales in revenue who profit almost nothing

obviously revenue is good in the sense of your business is potentially operating at a high scale and pushing product, but very obviously sales is all about margins and in the end whether you have high revenue or low revenue cost and profit are really what matters

sort of reminds me of the PS2 and Gamecube generation- Nintendo sold way less hardware/software than Sony during those years yet somehow managed to profit a lot more. again, revenue on its own is a useless stat without context and other numbers to look at

 

I think the point I was trying to make is that rev is not the only peice, but it is obviously the most important factor as ultimately it is the factor between a good year and a great year all else remaining nominal. 



FragilE^ on 20 January 2016

Assets mean things like studios, right? But also offices and boring stuff.
Also, its the entirety of MS and Sony, right? Not just the gaming divisions. Hm. Would be interesting to see that breakdown, if possible.

Would love for Nintendo to invest and expand.. Spend all the cash, get more studios!



CosmicSex on 20 January 2016
FragilE^ said:
Assets mean things like studios, right? But also offices and boring stuff.
Also, its the entirety of MS and Sony, right? Not just the gaming divisions. Hm. Would be interesting to see that breakdown, if possible.

Would love for Nintendo to invest and expand.. Spend all the cash, get more studios!

An asset is pretty much anything with material value.  Some are more liquid than others meing that they can be converted to cash easier.





theprof00 on 20 January 2016
barneystinson69 said:
SpokenTruth said:

Several people seem to think that winning or losing in the console race is a direct indicator of corporate health and the security of that company's future.

Below is a list of a few current (end of 2015) aspects of each that company that should shed more light on exactly how successful or in danger they are.  Unfortunately, this will compare the entire companies rather than just their game segments but for the sake of a company being solvent, it's relevant.

 

Company Nintendo* Sony* Microsoft
Cash and Short Term Investments $7.6 Billion $15.7 Billion $96.5 Billion
Total Assets $11.3 Billion $132.0 Billion $176.2 Billion
Total Liabilities $1.5 Billion $107.6 Billion $96.1 Billion
Total Debt $103,000 $18 Billion $7.5 Billion


* - All figures converted from Japanese Yen to USD.

 

103,000$  debt. Nintendo really knows how to manage money.

Interestingly enough, Nintendo's stock is sometimes referred to as a cash stock. Basically, the only thing that matters is cash on hand.

For Sony and MS having debt is no big deal, but for Nintendo, it is, so they keep it as low as possible.





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Teeqoz on 21 January 2016
mountaindewslave said:

sort of reminds me of the PS2 and Gamecube generation- Nintendo sold way less hardware/software than Sony during those years yet somehow managed to profit a lot more. again, revenue on its own is a useless stat without context and other numbers to look at

 

Nintendo sold more hardware than Sony in those years, or at least roughly the same amount. There were these things named the Gameboy, Gameboy Advance and the Nintendo DS.



Aielyn on 21 January 2016
Platina said:
Tagging...

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

If you can get a loan at, say, 10% per annum (effective rate) interest, and use the money you got in the loan to double your money in three years, then you'll have made money when you eventually pay back the loan. If the loan was $1 million, then you'd have ended up making $669,000 after paying back the loan with interest.



Sprash on 21 January 2016
Teeqoz said:
mountaindewslave said:

sort of reminds me of the PS2 and Gamecube generation- Nintendo sold way less hardware/software than Sony during those years yet somehow managed to profit a lot more. again, revenue on its own is a useless stat without context and other numbers to look at

 

Nintendo sold more hardware than Sony in those years, or at least roughly the same amount. There were these things named the Gameboy, Gameboy Advance and the Nintendo DS.

I have no Idea why so many people forget that and are surprised when they see that nintendo made as much money in the ps2 era as sony.





 

 

Puppyroach on 21 January 2016

It's great to see how Nintendo have been handling their assets. Whether or mot they are selling many consoles, they still seem to survive financially without any huge issues.



DonFerrari on 21 January 2016

What is really the point?
We all know Sony finances aren't that strong and that doesn't matter how much money MS throws in X1 it won't pass PS4.
So you just wanted to?



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."