I find it perplexing when people use the argument "the 3DS will keep Nintendo...

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3 years ago#111
Except it did a heel face turn and is now making them a tidy profit. Not like they would need the 3DS to survive, they made enough money from DS and Wii in order to keep going. They're worth more than the entirety of Sony.
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3 years ago#112
Banjo2553 posted...
I thought right now the 3DS has just become profitable for them.

They still lost the money they lost they haven't recovered it or R&D they are just not losing any more. Still like the other guy said their saving can keep them alive for 2 failed gens probably.
3 years ago#113
FAT____MAN posted...
I'm pretty sure Nintendo's billions of dollars with no debt will keep them afloat.

Jirachi is the best pokemon ppl who agree:3
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3 years ago#114
Whats this nonsense?
3 years ago#115
Nintendo- Going out of business since 1889.
3 years ago#116
sonicfanaticjtb posted...
kissdadookie posted...
squatch22 posted...
Ppl forget Nintendo is the only console maker to actually make money last Gen...

Make money on the hardware last gen. MS made plenty of profit from the Xbox through licensing. Positive profits, not net losses for MS yet they are still netting a loss I believe on each 360 sold.

Nintendo made plenty of money on their hardware last gen but that is also to their detriment. When sales of the hardware declined, their financials dropped like a rock. They had no other alternative revenue streams and we saw what we saw from their financials last yet. There's also another problem with them making the majority of their revenue from hardware, them being a Japanese company, this makes them heavily reliant on export. The bulk of the world's video game market generates their revenue from the western markets, Japan simply can not sustain a company like Nintendo. Japan is a big market but it's only roughly 1/3 of their business. So as you can see, the world's economic problems are not going away any time soon, thus it's very bad news for Nintendo since they are so reliant on hardware revenue and thus very reliant on export. The exchange rate is doing them no favours and on top of that, their hardware sales are not very impressive. So you have a hardware sales slow down combined with horrendously bad exchange rates, this just equates to a downward spiral for Nintendo. On top of this, Nintendo has reduced it's profit margins on both the 3DS as well as the Wii U. So altogether, it's quite obvious that Nintendo needs to change their business strategy and start figuring out alternative revenue streams to be able to keep forging ahead.

Yes, in the short term they will be perfectly fine, but all businesses are played for the long term. Unless you honestly believe that the world's economy will significantly change for the better in the next 5+ years, Nintendo doing the type of business they have been and are currently doing is just going to be a continued downward spiral on their balance sheet year over year.

None of this is really a knock on Nintendo, but it's foolish to think that Nintendo will be fine just because they have a few billion sitting in the bank. For the short term, they will be fine, for the long term considering how the world's economic landscape is going, it's troublesome. What makes it worse is that Nintendo currently doesn't have strong alternative revenue streams nor do they have many liquid-able assets thus if they don't quickly forge new alternative revenue streams, they are going to find themselves becoming less and less flexible with their billions draining out of their account faster and faster each year.

Nintendo's apparently got enough money to not give two craps 'bout anything for quite some time.

I think, like, 30+ years quite some time. That long term enough for ya?

I, sadly, don't have a link to the article that shows this, so somebody else will have to provide a source... Unless I decide to stop being lazy before having to go to work...


Page 23. Retained earnings is 18 billion USD.
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