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Nintendo has enough cash in the bank to run a deficit for 38 years

Enough with the negativity, nintendo will be just fine.

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wiiudaily.com
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XiSasukeUchiha864d ago

So that confirms that NIntendo isn't on the verge of bankruptcy or ever will be !

iamnsuperman864d ago (Edited 864d ago )

Yes but the article states that if it lost 20 billion yen every year it could last for 36 years. That depends on the 20 billion loss. If Nintendo was loosing 10 billion things would look a lot better but back in January they are expecting to have an operating loss of 35 billion for this year (so if things don't change they could last 23 years on the savings/bank). But this ignores how much they are spending to get the operating loss. What is worrying though is how much change will happen if these are the sort of losses Nintendo is getting 2 years into a life of a new system. New systems are meant to increase operating profits.

All in all I find the article raises a good point but also ignores another. They might have money in the bank to "last" but lasting isn't how companies survive. They do need to change things around because the sooner the back up pocket shrinks the hardier it will be to turn things around (spiral as it takes spending money to make money). Also the longer they leave the change the less relevant they will be with the consumer (which won't help them keep the back up money). For instance how hard (financially) would it be for Nintendo's next system where its currant one has no hype with the consumer already

AnnaDHardin864d ago SpamShow
N4g_null864d ago

They are building a building and making the next handheld or fusion. There operating cost is not always that high. They have a bunch of games out now that people will buy when they finally get a wiiu.

schlanz864d ago

I think the point is a couple years of losses is nothing that points to doom for Nintendo. They could quite easily turn their fortunes around, and even if it takes a few more years.

ObiWanaTokie864d ago (Edited 864d ago )

Nintendo will never fall, they will just be too ignorant to get ahead of m$ and sony

Thatguy-310864d ago

They aren't on the verge of bankruptcy but no company wants to be reporting a loss no matter how much money they have. Everyone wants to see profits and sale increase. Only because they have that much money doesn't change the fact that they're losing a lot.

truechainz864d ago

You are absolutely right, but that is not what the author is trying to refute. The author, though operating under a lot of assumptions, is really trying to discredit the idea that Nintendo needs to drop the wii u or go 3rd party to save its business.

InTheLab864d ago (Edited 864d ago )

Thank you. Been saying it for months. Nintendo is not a private company and it's board will not allow the company to dip into funds for a dead project.

Certain fans on this site believe making a couple dollars off a console after years of losses somehow makes the entire run of that console successful and that is not the case. Nintendo has failed with 3 out of 4 console and no matter how much they have in the bank, no company is willing to dig into their fortunes to produce another failed product when the ROI is nonexistent.

CaptainN864d ago

@ inthelab "Nintendo has failed with 3 out of 4 consoles"...really? Because the last I checked the DS, Wii and 3DS all printed money and sold like crack! So the Wii-U hasnt sold as well as it should have, but Nintendo can turn things around(as seen with the 3DS after its launch year).

And if you were refering to N64 & Gamecube, you do realize they made profits on all those systems sold as well. Gamecube sold 2 million less then XBOX, but XBOX took losses that whole generation, so who really lost? And N64 held its own, and looking back now, which games held up over time, N64 or PS1?

Magicite864d ago

nobody has said Nintendo is on verge of bankruptcy. There have always been only doom and gloom articles about WiiU.

SpiralTear864d ago

Tell that to all of the people who write and submit articles telling Nintendo to go third-party because the Wii U is selling so badly.

Under Nintendo's mindset, losing creative and financial control over their properties and products is admitting defeat. That's what happened to Sega, and now they're tanking harder than ever. Their relevancy has been crippled significantly.

This article is in response to the people who believe a single "failed" console can and will destroy a company entirely.

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Geobros864d ago

Nintendo means money..............:o

PSNintyGamer864d ago

You would think it this would stop all the Nintendoom. However,it most likely won't

Hicken864d ago

Common sense arguments don't stop anybody from saying stupid things, whether is about Nintendo or anybody else.

tweet75864d ago

the 3ds and wii u could both fail and nintendo would be fine wed still get great games from them

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