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

#2140DribylfPosted 12/26/2012 10:38:52 AM
kissdadookie posted...
FAT____MAN posted...
I'm pretty sure Nintendo's billions of dollars with no debt will keep them afloat.


Basically, they will continue to pish it away at this rate.

The days of Nintendo making money off of mainly hardware is getting much harder for them. Exchange rates is NOT favourable for a Japanese company that is HIGHLY dependent on an export business (they can be as big as any company has ever been in the Japanese market but if you look at the global video games market, revenue mostly generates from the western markets). 3rd party support is STILL very lacking. Basically, Nintendo needs a new business model that includes much stronger 3rd party support (for licensing revenue) as well as a MUCH more robust alternative revenue streams (DLC, sped up software release schedule, new IPs, services based revenue streams, etc.).


So you REALLY have to TYPE like THIS, it makes me NOT want to TAKE you SERIOUSLY.

Anyway, I agree Nintendo's business has to change, but not because they'll "flop" otherwise (they're doing just fine) but because it would benefit me as a gamer.

I think Nintendo has some big plans in 2013.
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#22kissdadookiePosted 12/26/2012 10:39:57 AM
40Dribylf posted...
And how much money did Nintendo lose? Like $150 million?

Do you understand that's literally pocket change to a company like Nintendo? Who has tens of billions on lock?

Do you understand most companies (like Sony) have losses in the billions?

If Nintendo's biggest loss is $150 million, lmao, they literally have nothing to worry about at all, especially since they usually make a profit.


Sony have losses but Sony owns A LOT OF ASSETS. They can go and liquidate MUCH of the company and just leave itself with core businesses and still be ok.

Nintendo on the other hand has just ONE business and that business is on the decline FAST. Yeah, it has money in the bank but it's in a precarious situation if it doesn't come up with a new means of revenue. Hardware revenue isn't really all that sustainable anymore. They are getting hit on TWO fronts fro hardware sales, 1) they've lowered the profit margins on hardware sales 2) the exchange rate for a Japanese export dependent company like Nintendo is HORRENDOUS. Nintendo needs alternative revenue streams and they need them quickly or else they will continue to lose money quickly year over year and it's going to come a point where investors will drop them like a rock and when that happens, Nintendo isn't as flexible as Sony is since they wouldn't really have that many assets to liquidate.

Basically, Sony can still turn itself around, due to the size of the company and due to the fact that it has its hands in A LOT of different businesses. Nintendo doesn't have the flexibility.
#23EastCoastKodyPosted 12/26/2012 10:41:12 AM
yeh....I'm sure Sony would love to liquidate a bunch of their assets....just to keep their video game division afloat
#24Phange 2(Topic Creator)Posted 12/26/2012 10:41:29 AM
ish0turfac3 posted...
Lol tc is talking about nintendo going broke when he has a psnid in his sig.. lol.


Lol you can own more than one console if you work for a living.
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#25EnVy_CaLiBeRPosted 12/26/2012 10:45:08 AM(edited)
I think that the people believing Nintendo will stay afloat goes beyond the 3DS. It has more to do with Nintendo coming off the most successful console generation with the Wii, the DS and 3DS selling like hotcakes and remaining the top handhelds, and the Wii U having the second most successful launch in history trailing only the Wii.

Nintendo will be around for awhile.
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#26squatch22Posted 12/26/2012 10:44:33 AM
Ppl forget Nintendo is the only console maker to actually make money last Gen...
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#2740DribylfPosted 12/26/2012 10:44:34 AM
Dude, if you keep typing like that, it's gonna be impossible for me to read your posts due the EXTREME eye rolling.
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#28kissdadookiePosted 12/26/2012 10:46:22 AM
40Dribylf posted...
kissdadookie posted...
FAT____MAN posted...
I'm pretty sure Nintendo's billions of dollars with no debt will keep them afloat.


Basically, they will continue to pish it away at this rate.

The days of Nintendo making money off of mainly hardware is getting much harder for them. Exchange rates is NOT favourable for a Japanese company that is HIGHLY dependent on an export business (they can be as big as any company has ever been in the Japanese market but if you look at the global video games market, revenue mostly generates from the western markets). 3rd party support is STILL very lacking. Basically, Nintendo needs a new business model that includes much stronger 3rd party support (for licensing revenue) as well as a MUCH more robust alternative revenue streams (DLC, sped up software release schedule, new IPs, services based revenue streams, etc.).


So you REALLY have to TYPE like THIS, it makes me NOT want to TAKE you SERIOUSLY.

Anyway, I agree Nintendo's business has to change, but not because they'll "flop" otherwise (they're doing just fine) but because it would benefit me as a gamer.

I think Nintendo has some big plans in 2013.


You have to think long term. If they continue down their current path, in the long term they will flop. Heck, they had been flopping since N64. If it wasn't for handheld, they wouldn't have survived through the N64 and GC cycles. Now it's different, the handheld market is being eaten by the mobile and tablet market. Nintendo and Sony are basically fighting for a shrinking slice of a mobile gaming market. Sony obviously loss out and Nintendo won but in the long term, the 3DS isn't going to keep the company healthy if the Wii U turns out to be lackluster overall in terms of generating revenue.

Heck, the console gaming market is changing dramatically. The big question right now is a chicken or egg problem. If our internet bandwidth doesn't grow significantly in the next 10 years, then we might get another console cycle after the next Sony and MS boxes. If our internet bandwidth DOES grow significantly, the next MS and Sony box might be the last significant bump for console hardware as the market will turn to streaming (Sony bought Gaikai for a reason, MS is trying to make a set top box for a reason, both companies wish to make the gaming console into what are essentially dumb terminals).

Gamers don't like the idea of game consoles turning into set top boxes but that is the direction that the general consumer market is going. That's what the general consumer market wants. It's inevitable and it's going to be the only way ANY of these companies will be able to continue to make money. Thus, Nintendo seriously needs to work on services as well as gaining 3rd party support quickly.
#29ish0turfac3Posted 12/26/2012 10:46:59 AM
Phange 2 posted...
ish0turfac3 posted...
Lol tc is talking about nintendo going broke when he has a psnid in his sig.. lol.


Lol you can own more than one console if you work for a living.


Funny, considering I'm at work right now. And I have more than just one online id in my sig. Unlike you. Try again tc.
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#30kissdadookiePosted 12/26/2012 10:48:43 AM
EastCoastKody posted...
yeh....I'm sure Sony would love to liquidate a bunch of their assets....just to keep their video game division afloat


They are actually. They've been downsizing other departments and a lot of talks about selling off entire arms of the company or spinning them off. Their core businesses right now is their digital imaging business, video games business which is also rolled up into their network services business, as well as their media business (music, films, TV).

So yes, they would much rather liquidate a bunch of their other assets to keep their video game division afloat because their video game division is one of the few core businesses they have which they can still salvage.