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Nintendo's War Chest Grows to $10 Billion
- Thread starter Akia
- Start date
monchi-kun
Member
non-games FTW!!!!
Agent Icebeezy
Welcome beautful toddler, Madison Elizabeth, to the horde!
I need to invest in them, honestly
Tenacious-V
Thinks his PR is better than yours.
moku said:
Cause people believe that overall console/handheld sales #s is the only thing that matters. Nintendo knows good business tactics, even if they're not the leaders.
Jill Sandwich
the turds of Optimus Prime
We should buy back Rare!
LOLOLOLOLOLOL!
Edit: I dig this-
LOLOLOLOLOLOL!
Edit: I dig this-
ThunderEmperor
Banned
nubbe said:
got that right i heard they are in talk to by sonys gaming division
The Evil Ganon
Member
jayhawker said:
monchi-kun
Member
Monorojo said:
it's all relative to the size of the company.....Nintendo's war chest is probably larger (by proportion) compared to Sony and MS' games division.
D
Deleted member 1159
Unconfirmed Member
Monorojo said:
Someone missed the point. Everyone claiming that Nintendo is on its way out (citing SEGA of all companies as an example) are basically full of crap. Even though they aren't outselling the competition, they are in no way bleeding cash like SEGA was for years before pulling out. Not only does Nintendo continue to make a profit, but it has cash to burn if it needs to take losses for a while. Nintendo is not going anywhere any time soon.
HOLY SHIT!The Evil Ganon said:
Go to this site and get the music started, and then look at this picture!
http://www.goodtobesquare.com/
LMFAO!
Oh shit that's funny as hell!!!! :lol :lol :lol
Deadly Monk
Banned
Rev and DS Lite...Nintendo is going to make so much more money this year. Scary.
I wonder if Rev will have a close tie with 360 like their last gen battle or if it will dominate completely. I know it will get a huge reception in Japan but the American market might not like the innovation.
I wonder if Rev will have a close tie with 360 like their last gen battle or if it will dominate completely. I know it will get a huge reception in Japan but the American market might not like the innovation.
Akia said:
This one is the best. Added to the first post.
That GIF was created by the androgyne.
Actually, I prefer the first one posted. It's less "in your face" and the monty python animation (for lack of a better term) is great. But the one you posted is good too, so no worries.
Agent Icebeezy
Welcome beautful toddler, Madison Elizabeth, to the horde!
monchi-kun said:
Nintendo has more cash at hand than Sony does as a corporation.
monchi-kun
Member
argon said:
Sun Tzu/Art of War:
All warfare is based on deception. Hence, when able to attack, we must seem unable; when using our forces, we must seem inactive; when we are near, we must make the enemy believe we are far away; when far away, we must make him believe we are near. Hold out baits to entice the enemy. Feign disorder, and crush him.
If you honestly needed this news to tell you Nintendo isnt going anywhere then you are pretty lost yourself.
And if you think this news will stop the "Nintendo AM D00med" crap that gets tossed around here you're out of your mind.
No real news here, big companies have lots and lots of money WOOHOO for us....i guess. Sony and Microsoft are likely sitting on Warcheats MUCH larger.
And if you think this news will stop the "Nintendo AM D00med" crap that gets tossed around here you're out of your mind.
No real news here, big companies have lots and lots of money WOOHOO for us....i guess. Sony and Microsoft are likely sitting on Warcheats MUCH larger.
Monorojo said:
You'd be mistaken. Most companies act under the illusion that it is a good idea to spend this years profits to A) Avoid tax and B) Invest to make even more money next year. Most of these companies will end up borrowing piles of cash. Nintendo actually save their money up - albeit via investment in funds, probably to avoid tax.
Well, Microsoft certainly have much more money to throw around than Nintendo but I don't think Sony have too much credit to burn.
Nintendo is debt free too and they would probably have an easy time to raise huge loans and other kind of capital to beef up their credit if they were interested in doing any kind of stuff.
Nintendo is debt free too and they would probably have an easy time to raise huge loans and other kind of capital to beef up their credit if they were interested in doing any kind of stuff.
MrPing1000
Member
Sony aren't they lose money all the time
*woo this post no longer makes sense"
*woo this post no longer makes sense"
Agent Icebeezy
Welcome beautful toddler, Madison Elizabeth, to the horde!
jarrod said:
Microsoft: $34.27 billion
Nintendo: $4.26 billion
Sony: $63.23 billion
Profits
Microsoft: $8.88 billion
Nintendo: $0.57 billion
Sony: $0.98 billion
Assets
Microsoft: $85.94 billion
Nintendo: $9.06 billion
Sony: $68.04 billion
Market Value
Microsoft: $287.02 billion
Nintendo: $12.80 billion
Sony: $38.00 billion
THis is from Forbes 2004
I remember reading that at most, Sony is dealing with 5 billion in cash assets at one time. A lot of their wealth comes from IPs in music and movies
D
Deleted member 1159
Unconfirmed Member
Agent Icebeezy said:
Now let's talk MS video game division! We all know that big SCE profits are holding the larger corporation up, where as MS' larger coproration is holding their video game division up.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
Akia said:
The art of moneyhats :lol :lol :lol .
nubbe said:
People really need a reality check on Microsoft's realistic ability/will to burn cash on the console market.
Microsoft currently has about 11 billion shares issued and their stock price has been in a slow decline for the past five years.
Revenue growth has been in a steady decline over the past five years - last I check it was down to 6 or 7 percent and shows no sign of letting up the decline. Way down from when it was in the mid-20s in the 1990s.
To keep people from dumping the stock the have been having to:
1) Keep increasing the dividend
2) Buy back shares to lower the dilution from the massive number of shares they used over the years to fuel their growth
Some simple arithmetic will show how little that cash pile is when it has to be increasingly distributed back to those 11 billion shares every year. Microsoft is currently in the process of blowing through a huge chunk of their cash just for this year's 1) & 2)
And on top of that, Microsoft is scrambling to switch their application business over to the exploding ad-based model that threatens to decimate one of their core monopoly revenue streams. Just this past month Microsoft was in talks with Yahoo to buy them out for 80 billion.
Microsoft is turning into more of a utility style company, low growth, high dividend. The Microsoft of 2006 is a very different company from the Microsoft of 2000.
I think the question is 'how much money are companies willing to spend on their gaming divisions?'. Companies like Microsoft and Sony consist of different divisions, with different priorities/budgets/... you have to look at how much they are willing to spend on their gaming business.
I like how not a single person acknowledged the fact that this $10bln isn't on-hand, available capital, but rather foreign currency holdings. Of course, I'm not sure details really matter here, much less one that few here even understand.
Bottom line, Nintendo has a freakin' fraction of the on-hand capital at their disposal that Sony has, and subsequently, they both have an even smaller fraction of what MS has.
And yet none of that matters, because overall all three companies are very different, both in structure and capital diversity, and they shouldn't be directly compared.
Bottom line, Nintendo has a freakin' fraction of the on-hand capital at their disposal that Sony has, and subsequently, they both have an even smaller fraction of what MS has.
And yet none of that matters, because overall all three companies are very different, both in structure and capital diversity, and they shouldn't be directly compared.
Earthstrike
Member
All 10 Billion?
Are you sure of this, or did you make this up?
MrPing1000
Member
kIdMuScLe said:
oh come on you can do better than that
Who cares how big Nintendo's warchest is? Some seem to believe, they would ever use it to fight some stupid console wars. But thats just stupid, Nintendo makes some $3 billion profit with every new generation of "unsuccessful" consoles like the N64 or GC.
And it will be the same (more or less) with the Revolution, if it is as successful as some here hope or if it just is another 20 million units "failure".
And it will be the same (more or less) with the Revolution, if it is as successful as some here hope or if it just is another 20 million units "failure".
Liquid in the sense that it could be spent immediately? Yes. But doing so could shrink that $10bln down to $3bln. I can guarantee they certainly don't have much tied into the Yen, which has been fluctuating wildly the last while, and near everyone has bailed out on the US dollar to a degree. They likely have large dividends in both steady currencies (BSP) and gradual up and comers (Indian Rupee).jarrod said:
To put it simply, these holdings are and have always been the backbone of Nintendo, and they will never and, honestly, can never spend even a small portion of it on a whim without risking unnecessary capital burn.
And to the individual who asked if all $10bln is in foreign currency holdings, yes it is. And no, I didn't make it up.
And to clarify, while IP is a major aspect of Sony's holdings, too many disregard their massive real estate holdings.
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