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Forums - Nintendo Discussion - Pachter: If the NX flops, Nintendo will still have 9.5 Billion dollars in the bank (They have 10 last time Pachter checked)

KLXVER said:
Acevil said:

See Soundlight's example. You can take cash and do various things with it. Invest in other assets being a big thing. I think the key thing they did the past year, was buy back stock about 1 billion of that 3.3 billion right there. 

Then how are they only going to lose 500M if the NX is a failure? I mean since the 3DS did well and yet they lost over 2B on the WiiU...

They lost money with 3ds too, for one year... The urgent huge price cut, if you remember! Since 3D effect was costly, they priced 3ds at the astronomical price for a handheld console of 249$, then they cut it to 169, sales skyrocket but they lost money,  that stopped with the introduction of  3ds xl at 199$  ( perhaps they exaggerated with the price drop of the og 3ds ) but in the year of profitable 3ds, wii u arrived... Maybe Nintendo should have released it later and continue with wii!

Wii u of course is the major contributor of the loss! By the way, Nintendo has lost money  only in three fiscal years in its long story, and that in the recent days, 2011,2012,2013!

Ergo, with the NX their first concern is to sell it on profit not huge sales and they said that they will do it from the beginning.

It's not difficult if it doesn't have expesnisve gimmickes like 3ds and wii u, 3d and tablet controller.

P.s

Now you must have understood why wii u never got a price cut!



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fatslob-:O said:

Actually, Nintendo has around 8.87 billion US dollars in current assets as of June 30 with the current exchange rate but it doesn't change the point one bit that Pachter raised so good job for him being reasonable since those are few and far in between ... 

Eh... "Good job" for what?  Nintendo publishes their cash holdings on a regular basis.  
How does regurgitating that info months later represent a "good job" or any skill at all?
Anybody interested in that info already had it, or could trivially find it if/when needed.
So what service is Pachter actually doing here?  
Distracting ignorants with info-tainment they aren't really interested in in the first place? (because if they were, see above)



mutantsushi said:

Eh... "Good job" for what?  Nintendo publishes their cash holdings on a regular basis.  
How does regurgitating that info months later represent a "good job" or any skill at all?
Anybody interested in that info already had it, or could trivially find it if/when needed.
So what service is Pachter actually doing here?  
Distracting ignorants with info-tainment they aren't really interested in in the first place? (because if they were, see above)

The good job for Pachter is coming to the conclusion that Nintendo wouldn't sink in most cases if the NX were to fail ... 

It's what you do with the data that counts, not what you know ... 



fatslob-:O said:
mutantsushi said:

Eh... "Good job" for what?  Nintendo publishes their cash holdings on a regular basis.  
How does regurgitating that info months later represent a "good job" or any skill at all?
Anybody interested in that info already had it, or could trivially find it if/when needed.
So what service is Pachter actually doing here?  
Distracting ignorants with info-tainment they aren't really interested in in the first place? (because if they were, see above)

The good job for Pachter is coming to the conclusion that Nintendo wouldn't sink in most cases if the NX were to fail ... 

It's what you do with the data that counts, not what you know ... 

From the few times that we agree on something...

If patcher hadn't care to check  that and went  by his mind/heart on a conclusion in case of NX flop, he would probably say that Nintendo would be completely destroyed     ( like many gamers who doesn't check these data, do )

We all know that patcher isn't very friendly wtih Nintendo! heh



Acevil said:
Lawlight said:

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

You might want to check again, For Fiscal Year Ended 2010, it was $886,995 Million Yen Cash + 365,326 Million Yen for Short Term Investment (1,251,000 Million Yen) and now it is For Fiscal Year Ended 2016 $909,340 Million Yen for Cash and Short Term Investment. 

(The reason my numbers were off, is they changed how it was presented, which to be fair is just presentation.

Any reason why you're ignoring Notes and Accounts Receivable? 



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onionberry said:

All I see is people saying "but if they fail it's over for their HW market" like, really? they will try again with other idea. Sometimes I think those opinions are by kids or people who don't know anything about business. I could mention a lot of companies with failed products and now look at them, sony being one, MS being one, Samsung being one, Apple being one. It's kinda incredible honestly how people think everyone is Sega and kimishima is just going to say "okay! we are done with this business! Fuck all those years!"

I think you're missing the point.  Even Nintendo is no longer ignoring the fact that the HH market is starting to die.  The NX looks to be combinging the two markets in an attempt to find success, as Nintendo can't really compete in the home console market when it is mostly composed of core gamers.  Their recent approach of cheaper, underpowered for the current gen HW doesn't appeal to the majority of core gamers.  Even when they were attempting to compete spec vs. spec it didn't changed the fact that each new home console they have released with that mindset has declined in sales.  The NX seems almost like a last ditch effort to stay relevant HW-wise.  IF it flops, there really isn't another idea for them to try.  I mean, what other gimmick could they include that would make it a hit?

Edit: It's also interesting to note that Nintendo has finally started to get into mobile gaming, something I doubt many would have expected with success of the DS and smaller success of the 3DS.  Personally, I think they are testing the waters to see what life would be like without their own HW to sell their games.



KLXVER said:
Lawlight said:

I just checked and it was US$15.4B back in 2010. So, that's a US$6.8B drop in 6 years. That's with the 3DS's success. The NX needs to make a big impact if they want to combine handheld and console sales.

7 billions lost in 6 years? That doesnt sound right.

Based on their financials, their current assets (or what Pachter is calling cash in the bank) was at US$17.1B back in 2010 actually. I guess the strong yen hit them hard as well. 



CGI-Quality said:
Goodness - what happened to this topic? It now has very little to do with Nintendo at all.

Plenty of Nintendo financials talk still going on.



thismeintiel said:
onionberry said:

All I see is people saying "but if they fail it's over for their HW market" like, really? they will try again with other idea. Sometimes I think those opinions are by kids or people who don't know anything about business. I could mention a lot of companies with failed products and now look at them, sony being one, MS being one, Samsung being one, Apple being one. It's kinda incredible honestly how people think everyone is Sega and kimishima is just going to say "okay! we are done with this business! Fuck all those years!"

I think you're missing the point.  Even Nintendo is no longer ignoring the fact that the HH market is starting to die.  The NX looks to be combinging the two markets in an attempt to find success, as Nintendo can't really compete in the home console market when it is mostly composed of core gamers.  Their recent approach of cheaper, underpowered for the current gen HW doesn't appeal to the majority of core gamers.  Even when they were attempting to compete spec vs. spec it didn't changed the fact that each new home console they have released with that mindset has declined in sales.  The NX seems almost like a last ditch effort to stay relevant HW-wise.  IF it flops, there really isn't another idea for them to try.  I mean, what other gimmick could they include that would make it a hit?

That's not how multi-million corporation works friend, first we don't know anything concrete about the nx, just a hundred rumors so we can't say the nx is this or the nx is that. But anyway, let's say the nx fails, do you really think that Nintendo is just going to ignore the business with more revenue for them? they are not going to just call sony ms and steam and say we are going third party, if they do that they don't have control and they will make less money than with a failed console. Nintendo has the biggest first party attach rate in the industry, that alone is good bussines. Nx fails? they will invent something else. Service based or hardware based they are going to sell hardware. Why do you think they are advertising their brand and you see mario at rio and Pokemon go everywhere? brand awareness makes them valuable and they know that, that helps their other future business. 



thismeintiel said:
onionberry said:

All I see is people saying "but if they fail it's over for their HW market" like, really? they will try again with other idea. Sometimes I think those opinions are by kids or people who don't know anything about business. I could mention a lot of companies with failed products and now look at them, sony being one, MS being one, Samsung being one, Apple being one. It's kinda incredible honestly how people think everyone is Sega and kimishima is just going to say "okay! we are done with this business! Fuck all those years!"

I think you're missing the point.  Even Nintendo is no longer ignoring the fact that the HH market is starting to die.  The NX looks to be combinging the two markets in an attempt to find success, as Nintendo can't really compete in the home console market when it is mostly composed of core gamers.  Their recent approach of cheaper, underpowered for the current gen HW doesn't appeal to the majority of core gamers.  Even when they were attempting to compete spec vs. spec it didn't changed the fact that each new home console they have released with that mindset has declined in sales.  The NX seems almost like a last ditch effort to stay relevant HW-wise.  IF it flops, there really isn't another idea for them to try.  I mean, what other gimmick could they include that would make it a hit?

Again with the flop! What flop do you mean?

It can be a commercial flop but financial success... 

I would guess that Nintendo first and for most wants to be sufficiently profitable not to make huge hits...

 

They wouldn't be upset with just 30m selling NX with big profits ( including software ) , but they would be upset with an 86m NX with huge losses  given their size...

 

Anyway, patcher says that if NX flops (  he must mean financially) it should lose 500m at most, hence they have the money for another try and another  and going on!