NEW REPORT: Nintendo selling off it's assets!

#121ssyl9Posted 8/6/2014 12:07:09 AM
What I would like is people should study more business economics before posting economic statuses...

Firstly, if Sony went down, IT IS NOT GOING TO CREATE A ECONOMIC CRASH! A normal company will only sell of the non-profitable parts until the very end. The process can take years and decades. Not instant!

Sony still has profitable parts (ie: insurance) that will stay standing. Other parts (like the entertaining part) will most likely be bought by other electronic organisations. A MULTI FUNCTIONAL COMPANY DOES NOT GO DOWN ALL AT ONCE!! the different divisions have different liability entities, one part of it going bankrupt does not mean all other die with it.

So unless Sony declared bankrupt in all of its divisions all at once, the effect is very low. Transitional unemployment will happen for a few months within division bankrupcy and it will subside when other companies takes the spot.

Secondly, yes Market cap is not the most effective way to measure company worth. But it is a very nice indication.

WACC/leverage ratio/current ratio are also very important. And sony is failing in nearly all of them.

Thirdly, yes when sony fail it will create a much larger effect than if nintendo fail.

This is not because of employment, but the GDP export that Japan loses. Sony exports a lot more different products compared to Nintendo, bringing income for Japan in more areas, so it will hurt the japan economics until a sucessor takes its place. Employment has minimal effect as employment cycle will take place and the spike in unemployment will be quickly filled to an equilibrium. Exporting income and the loss of tax from them are the ones that will hurt the economy!
---
FC: 3496-9980-2182
#122bandit__74Posted 8/6/2014 10:20:07 AM
ssyl9 posted...
What I would like is people should study more business economics before posting economic statuses...

Firstly, if Sony went down, IT IS NOT GOING TO CREATE A ECONOMIC CRASH! A normal company will only sell of the non-profitable parts until the very end. The process can take years and decades. Not instant!

Sony still has profitable parts (ie: insurance) that will stay standing. Other parts (like the entertaining part) will most likely be bought by other electronic organisations. A MULTI FUNCTIONAL COMPANY DOES NOT GO DOWN ALL AT ONCE!! the different divisions have different liability entities, one part of it going bankrupt does not mean all other die with it.

So unless Sony declared bankrupt in all of its divisions all at once, the effect is very low. Transitional unemployment will happen for a few months within division bankrupcy and it will subside when other companies takes the spot.

Secondly, yes Market cap is not the most effective way to measure company worth. But it is a very nice indication.

WACC/leverage ratio/current ratio are also very important. And sony is failing in nearly all of them.

Thirdly, yes when sony fail it will create a much larger effect than if nintendo fail.

This is not because of employment, but the GDP export that Japan loses. Sony exports a lot more different products compared to Nintendo, bringing income for Japan in more areas, so it will hurt the japan economics until a sucessor takes its place. Employment has minimal effect as employment cycle will take place and the spike in unemployment will be quickly filled to an equilibrium. Exporting income and the loss of tax from them are the ones that will hurt the economy!


Sorry, this response is far too reasonable and researched for this board. Only posts based on anecdotal evidence, logical fallacies and wishful thinking are appropriate here.

In the future, before posting try sticking your head up your @$$ and then spew the most idiotic nonsense you can come up with. You'll fit right in.
#123Granadico_Posted 8/6/2014 10:26:27 AM
powerclaw1 posted...
It was just SIRAS. Calm down.

ssyl9 posted...
What I would like is people should study more business economics before posting economic statuses...

Firstly, if Sony went down, IT IS NOT GOING TO CREATE A ECONOMIC CRASH! A normal company will only sell of the non-profitable parts until the very end. The process can take years and decades. Not instant!

Sony still has profitable parts (ie: insurance) that will stay standing. Other parts (like the entertaining part) will most likely be bought by other electronic organisations. A MULTI FUNCTIONAL COMPANY DOES NOT GO DOWN ALL AT ONCE!! the different divisions have different liability entities, one part of it going bankrupt does not mean all other die with it.

So unless Sony declared bankrupt in all of its divisions all at once, the effect is very low. Transitional unemployment will happen for a few months within division bankrupcy and it will subside when other companies takes the spot.

Secondly, yes Market cap is not the most effective way to measure company worth. But it is a very nice indication.

WACC/leverage ratio/current ratio are also very important. And sony is failing in nearly all of them.

Thirdly, yes when sony fail it will create a much larger effect than if nintendo fail.

This is not because of employment, but the GDP export that Japan loses. Sony exports a lot more different products compared to Nintendo, bringing income for Japan in more areas, so it will hurt the japan economics until a sucessor takes its place. Employment has minimal effect as employment cycle will take place and the spike in unemployment will be quickly filled to an equilibrium. Exporting income and the loss of tax from them are the ones that will hurt the economy!

These.
Holy crap i need to stop reading these topics
---
Call me Granny
Currently playing: Xenoblade (Wii), Kid Icarus: Uprising (3DS), and slowly but sure Half-Life 2 (PC) | NNID/Steam/etc:Granadico
#124itsmeaustinPosted 8/6/2014 10:36:03 AM
slyman, you do realize the Japanese government said that it would only save the parts of Sony that are deemed relevant, yes? IE banking and insurance etc. SCE would most certainly be on the chopping block as video games just aren't important. Sony would be transformed into a govt workhorse instead of an electronics company. And this was years ago. Most recently, the Japanese government is removing Sony from the govt back stock index starting in January 2015. Who knows if the govt will bail out sony now that they keep cutting jobs and are spiraling into irrelevancy.

Plus they moved a bunch of factories from Japan to Taiwan which pissed the Japanese public off.
---
http://www.youtube.com/watch?v=cNgxyL5zEAk