Is it true that nintendo has no debt? that would be incredible, makes me wonder how they can pull billions of dollars out of their own pocket for development, advertising campaigns and services. (I'm being serious, I don't think they are debt free, but it'd be amazing business if they were)

I don't think your theory is correct Deeds, I believe (like largedarrryl before me) that if the theory were correct, it'd be highly illegal and grossly unethical.

Nintendo has no debt, Microsoft has no debt either. Furthermore, Nintendo pays out much bigger cash dividends than Sony to their shareholders every year.

There is a simple reason that "analysts" are always rooting for Sony. It's because Sony is the horse that they backed in the beginning and that they don't want to be wrong. That's all. It's an ego thing. No conspiracies. No reading between any lines.

Here we go, page 7: http://www.nintendo.com/corp/report/FY07FinancialResults.pdf

As you can see, practicaly all of there credit comes from their own share. The (small) remainder are current liabilities.

Edit: @Kyros.

I must be honest, in the name of my study I had to look at several companies' balance sheet, and Nintendo is the first I see with no outstanding debt whatsoever.

You are right that making a profit (which usually on the balance sheet ends up in the credit section off the balance sheet under the shareholder's equity/retained earnings and that is what finances all other operations. But a lot of companies find it more usefull at times to take out a loan instead of selling more shares - in fear of deluding value, making it easier for companies to buy them out, etc.

So it is really impressive that Nintendo can safely finance it's operations from income alone.

Now it is true that banks are in the business of debt creation, but they are also in the business of not letting the borrower default on their loan. Banks cannot stop the success of a product (like the Wii), but they can pay analysts to calm investors and consumers fears to protect the borrower.

BTW, Wedbush Morgan Securities is a wholly owned subsidiary of Wedbush inc. who has a division (Wedbush Bank) that lends money to businesses and are involved in the bond market.

Additionally, Nintendo has no debt. They operate outside the banking industry.

Oh god.. the thread sounds like one of the loons who said...

"Human's came from aliens! The Goverment is hiding it!"

......typically when you're evaluating a stock/company (as an investor) you go by Total cash - Total Debt. I'm not even going to check up on it right now but I assure you, the difference you'll get is around 3 billion. I really hope you weren't JUST looking at the debt (something that I've never seen anyone do before) and ignoring the total cash on Sony, because that would really hurt your credibility in terms of figuring out a company's balance sheet and "health". With that being said, with just the ratio alone, you'll know that it's certainly possible (like i said before) that Sony could pay off their debt IF they wanted to. Neither of this matters because like I've said before, a company like Sony could be in debt but none of it would matter since it's not the biggest conern for investors ATM. I wish analysing stocks and balance sheets were as easy as you seem to make it, then I wouldn't of had to go through all the growing pains (and loses) as an investor during all those early years.

I bet you must be wrapping your head around how Sony could be in so much debt (by ignoring the total cash) yet they continue to get bank support, investor support, institutional support and all this while the stock price hasn't fell of the table yet huh?

This is all true. For more info, watch Speed Racer.