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

#41StealthlysPosted 12/26/2012 11:33:44 AM
dart246 posted...
I honestly don't think "kissdadookie" has much idea what he is talking about, but then again, with a name like that, are you surprised?


Thats 60% of the trolls here mainly. Incoherent, illiterate than your basic 11 year old playing CoDz., thinks false info is true.
#421shadetail1Posted 12/26/2012 11:37:41 AM
Stealthlys posted...
dart246 posted...
I honestly don't think "kissdadookie" has much idea what he is talking about, but then again, with a name like that, are you surprised?


Thats 60% of the trolls here mainly. Incoherent, illiterate than your basic 11 year old playing CoDz., thinks false info is true.

To be fair, kissadookie isn't really a troll. He's just a serious case of the Dunning-Kruger effect.
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#43Sirian_HawkPosted 12/26/2012 11:38:33 AM
Unprecedented rate for Nintendo. Losing a hundred million dollars sounds bad, but Nintendo has a Scrooge McDuck money bin with ten billion dollars in it. That isn't hemorrhaging, that is a slow drip.

Sony loses billions a year, that is like having a leg fall off.
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#44SuperShyGuy9000Posted 12/26/2012 11:40:23 AM
I find it perplexing that one company does only one thing video games and another has it hands in 15 different things and the worth near the same.

Yet people insist that the video game company is worse off than the company that is 10x bigger The video game company has money in the bank but should give up. The multimedia company has debt climbing but is totally fine.
#45sonicfanaticjtbPosted 12/26/2012 11:42:17 AM
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...
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#46dart246Posted 12/26/2012 11:42:33 AM
SuperShyGuy9000 posted...
I find it perplexing that one company does only one thing video games and another has it hands in 15 different things and the worth near the same.

Yet people insist that the video game company is worse off than the company that is 10x bigger The video game company has money in the bank but should give up. The multimedia company has debt climbing but is totally fine.


No no no...Sony is worth significantly less. Hell Nintendo could take a hostile takeover of Sony if they truly wanted to.
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#47jsb0714Posted 12/26/2012 11:48:22 AM
I doubt it takes much to "perplex" TC.
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#48darkjedilinkPosted 12/26/2012 11:49:23 AM
Phange 2 posted...
...afloat"

Do people not realize that it has thus far been the costliest mistake Nintendo has ever made (due to timing, an unwarranted price drop, and a strong yen)?

Nintendo desperately needs e Wii U to sell gangbusters and with a high first party attach rate. The 3DS is causing them to hemorrhage cash at an unprecedented rate.


The 3DS is already a profitable venture. They haven't been "hemorrhaging" cash on it in months.

The strong yen argument has nothing to do with the 3DS, since it affects every product Japan sells in the US.
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Gaming is like a pair of boobs - Sony and Microsoft fight over whos boobs look more realistic, while Nintendo is about having fun with them - Walkiethrougie
#49StealthlysPosted 12/26/2012 11:49:53 AM
dart246 posted...
SuperShyGuy9000 posted...
I find it perplexing that one company does only one thing video games and another has it hands in 15 different things and the worth near the same.

Yet people insist that the video game company is worse off than the company that is 10x bigger The video game company has money in the bank but should give up. The multimedia company has debt climbing but is totally fine.


No no no...Sony is worth significantly less. Hell Nintendo could take a hostile takeover of Sony if they truly wanted to.


and why would nintendo want to buy literally junk?
#50IcecreamdunwichPosted 12/26/2012 11:51:11 AM
Before people go off spouting that they are profitable now, let's wait for them to actually post a profit.