If you are talking about the numbers on a P&L then yes, this is correct
But you were talking about cash going into a bank account. That's not what profit is.
I didn't say that profit is the money that goes to a bank account.
Profit, is what I mentioned: the difference between what they earned and what they spent in that year/quarter/project/etc.
Let's say that -simplifying it- a year they start with 5B in the bank, an during that year they have 10B in revenue etc. and they spent 9B in development, marketing, R&D etc. So at the end of that year, they'll have a profit of 1B for that year and 6B of cash in the bank.
There's also cash equivalents that aren't directly cash in the bank etc. but to make it simpler, cash is money in the bank, that remained there at the end of that year because they decided to don't spend it somewhere during that year (it's always good to have a good chunk of cash & equivalents to have a healthy company specially if there are macroeconomic uncertainities in the horizon, etc).
Not if you meant to say "no" here, but we can look at the last few years and see that Sony publishes fewer games than Nintendo does most of the (not including ports/remasters).
My idea was to reply the 3 blocks in a row, the N wasn't supposed to be there (I just edited it) xDD
I often have the web browser in a screen and I'm coding in the other one, and when compiling there's an emulator window that appears changing the focus automatically, so sometimes happens that there's some accidental, untintended keypress somewhere. xDD
I agree with most of this (apart from the fact Nintendo doesn't produce less 1st/2nd party games, not sure why you think that).
A couple of points though:
1. Sony traditionally having a different profit margin than Nintendo is due to many factors, most of which aren't related to CapEx. Things like accounting system, digital ratio, price changes, first/third party software ratio etc. are non-investment factors that affect a company's profit margin. Sony doing more acquisitions and having higher operating costs is just part of the puzzle.
2. The issue with the way you framed it is that you made it sound like caring for growth and reinvesting was a Sony-specific thing. Microsoft has invested way way more in gaming than Sony in recent years, but that doesn't mean Microsoft is reinvesting profits while Sony is just putting cash in the bank.
Microsoft, Sony and Nintendo are three different companies with different scales and investment strategies. But they are all reinvesting in their businesses and to claim any are "ok with how they are" simply isn't true.
Regarding "non-investment factors": when I said that a company like Sony reinvests most of the revenue they generated that same year, I didn't mean investments in the strict meaning (merge & acquisitions stuff where they acquire a part or totality of another company).
I meant that they decide to spend it in game development, marketing, R&D, deals with 3rd party and so on (being M&A just a small part of that). Stuff that are costs today but will mean more direct or indirect revenue and profit somewhere in the future.
And that if Sony makes let's say $25-30B in revenue per year, they have more room to -if/when desired- 'reinvest' less that year to post a larger profit. Meaning, they may decide for that year to greenlight less first party games that year, or cancel some title, or to lower the spent in marketing campaings, sign less deals with 3rd party, delay acquisitions for another year, to grow less their existing teams that year, to make some layoff somewhere, etc.
All these things affect their profitability. The acquisition related costs -even related to acquisitions made years before- also affect their profits, in fact Totoki previously mentioned them as part of the main reasons of why they had less profit in FY22 and FY23 versus previous years, and that they were meant to -I can't remember exactly the periods - to ease out in FY24 and be completed in FY25.
Meaning, maybe part of why they did pause acquisitions was because they wanted to complete the integration and all the related costs from previous ones before moving to new ones (in addition to mentioned reasons like wanting to improve short term profitability, waiting for cash from selling most of their Financial Group, being cautious about macroeconomic uncertainities etc).