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[kamikaze]

yes, i'm sure you all know which company inspired this question...but since i want this to be a business oriented discussion and not an N-flame war, i'm starting this in the OT forum.

i'm not exactly a business wizard (far from it in fact), but it seems odd to keep such a huge amount of capital reserved for years on end. i always figured reserve capital was eventually used for investments that would further increase profit potential (i.e. extra R&D, company expansion, etc.). i can also see a company setting aside money in case they hit hard times in order to allow for continued operations during years of low (or negative) revenues.

is there anything else i'm missing? do many other corporations sit on such large reserves? any gaffers in the business world willing to enlighten this poor soul?

 

[Particle Physicist]

im not sure if the 6 billion is all in the bank.. or if its 6 billion in assets.. which is quite different.

 

[Space Age Playboy]

They could start their own bank.

 

[Willco]

Nintendo actually does keep all that money in the bank. They do it so that they can tell their consumers and supporters that can use that fact if they're in the middle of a vicious e-cockfight!

 

[maharg]

Nintendo really does have $6 billion or so in *cash*, not fixed assets. It's as plain as day on their cash flow statement they release every year like all good publically traded companies do.

And no, it's not very normal at all. It seems like what they're doing is basically playing currency trading games. Which they've lost money on recently.