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Forums - Nintendo - if nintendo stopped making consoles....

averyblund on 01 December 2009
jarrod said:
nordlead said:
Joelcool7 said:

I wonder last I heard Nintendo was climbing in value I remember it being worth 6-billion dollars during the GameCube era and I believe I heard a little while ago that the company was now worth over 9-billion and climbing towards 10-billion. So how many massive losses would Nintendo have to make in a row to actually fail. I believe what was it Microsoft lost 400-mill on the X-Box. So that would indicate Nintendo could fail as bad as the origional X-Box for almost a century. Nintendo could survive 25 generations before going bankrupt. I highly doubt that any failures could lead them to leaving the hardware industry.

Judging from Nintendo's history of always turning a profit I doubt Nintendo could ever loose enough money to abandon the hardware industry. Even the GameCube at 99.99$ was still turning a profit for Nintendo. Some said that if Nintendo left the hardware industry that share holders would force them to make games for competitors. Remember Nintendo was origionally a toy manufacturer and Entrepenuer. If Nintendo left gaming they could easily move into manufacturing toy's, card games, books, movies and a wide array of other products based on their existing properties.

 

Microsoft lost ~$4B on the XBox and ~$9B total in their gaming/entertainment devision.

I thought it was only ~$6.5B?  360 lost less than Xbox 1 (~$2.5B iirc), and now it's actually making the division profitable.  Or are you adding pre-Xbox figures for the E&S Div (which was like WebTV and Mac Office?)?

Yeah its kind of hard to know for sure. Mac Office must be a huge profit generator since pretty much every Mac user buys it. Rolling that into 360 figures could really sway the numbers. Not sure about WebTV and Zune though.  I'm assuming we will really never know for sure just how much money MS has burned, but its certainly more than they would like us or their shareholders know. If they can't turn it around next gen profit-wise they should be facing some tough questions- especially if they end up in last place (may or may not happen).



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tarheel91 on 02 December 2009
MaxwellGT2000 said:
tarheel91 said:
Xoj said:
tarheel91 said:
Xoj said:
Naum said:
PeteyPeeps said:
nintendo lost money on the gamecube ... sega lost money on the dreamcast ... Sega stopped hardware ... if nintendo stopped hardware ... i would have loved a sega/ninendo console, best of both worlds

<3 Sega <3 Nintendo


I think they almost earned as much profit on the Gamecube as Sony did on the PS2.

actually no, they made almost as ps2 with GBA+gamecube.

gba sold 80 milllion gamecube+22 gamecube. and their first party

also that was by the time ps2 was 100-120 million

Is this guy... Is this guy serious?

 

Devices sold =/= profit.

i didnt say that? i did say they had the GBA to fall off on profit.

it wasn't because of the gamecube.

They were talking about profit, and you used the number of devices sold as evidence for why Sony/Nintendo made profit.  Just because you sell a lot of consoles does not mean you made a lot of money.  If you sell them at a loss, that hurts profit.  Selling a lot of consoles that just break even is worse than selling much less for a good profit.  That's why you saw stuff like this back in 2005:

 

Uh oh someone brings in actual facts and figures and the debate ends funny how that works :P nice job lol.

And yeah it really doesn't matter how Nintendo pulled out a profit, you can say "but they were console and handheld!!!" all you want but the fact remains back the first couple of years of PSP they took a hit on those handhelds (which is likely why that 2005 graph is so low for Sony), its all about how you handle your business not how many consoles you sell. 

Exactly.  Fan boy arguments about systems and software sold become much less relevant when you enter the world of business.  No investor is going to care that Sony sold 6-7 times as many consoles as Nintendo.  Profit is where it's at.  Stock prices depend on the expectation of future profits, not future consoles sold.

Oh, and before anyone tries to turn this around on the Wii, see Nintendo's record profits these past few years.