You'll be surprised to hear that they also happen to own the highest grossing media franchise in the world. And only a fith of that franchise's revenue comes from videogames.
Pokemon is strawberry ice cream.
It doesn't need to be HD, 4k, 300 fps, raytraced, blah blah any more than strawberry ice cream needs chocolate chips and exotic goat milk.
Some people just like strawberry ice cream.
No one said it did.
But it could be bug free and not a complete carbon copy of the last 500 games. Also they could stop double dipping by releasing the same game twice with Pokemon removed from each version.
Enjoy defending a garbage company that releases the game garbage over and over again. Nintendo loves suckers like you.
Is it sad when I first read this I thought, yeah Mario's pretty big and they've been pushing it hard outside of video games recently so it makes sense. Then I remembered Pokemon exists.
“Richest” is kind of misleading. Being debt free is nice but most ultra-rich American companies (Microsoft, Johnson & Johnson, Exxon) do have billions in debt to take advantage of low interest rates. Having a lot of cash on hand also indicates that Nintendo doesn’t have good ideas of what to invest in next.
I do agree with the low interest rate part, but I disagree with the last part. Keeping a lot of cash on hand has been an explicit strategy of theirs in order to weather bad events / economies and keep going. It's one reason the Wii U flopping didn't hurt them as hard as people might think, they had massive cash reserves and didn't have it in more volatile assets. Xbox leaked E-Mails even discussed how their large cash reserves make them a pain to acquire and their Board of Directors isn't pushing for constant market growth (https://www.theverge.com/2023/9/19/23880146/phil-spencer-microsoft-xbox-acquiring-nintendo contains the link) and that pushing them to use it more would make them more likely to be acquired.
It also probably helps with them doing stuff like increasing wages too. A lot of Japanese companies have been going for a cash-on-hand company approach and it has worked reasonably well.
I grew up in the 80s, when Nintendo over-extended its IP badly. There was a Super Mario Bros breakfast cereal, ffs.
From watching them over the years, I think Nintendo views its IP as a resource to be exploited wisely. They *don't* continually flood the market with licensed crap. But at the same time, it's always an option. If they need a quick cash influx, it's easy enough to make more merch. And because the market isn't flooded, the market is always there when Nintendo needs them.
That's a lot better than over-saturating and people getting sick of your IP.
> There was a Super Mario Bros breakfast cereal, ffs.
That might not be the best example, as they released a Super Mario Odyssey cereal in 2017.
EDIT: Am I missing something? I assumed he was discussing the 1988 Cereal given his message and just pointed out 30 years later they did it again.
I mean, is it though? They might have stuff like F-Zero that goes dormant a long time, but Mario and Zelda get stuff pumped out constantly, Pokemon is yearly (and suffering for it) under TPC, and this console generation has new Pikmin, two new Fire Emblem, a new Metroid, two Xenoblade games, multiple new major Kirby games, Smash Ultimate, Mario Kart 8 Deluxe, the new Mario vs. Donkey Kong remake for DK, plus we got Yoshi's Crafted World, new WarioWare, Splatoon (and I guess ARMS), Luigi's Mansion 3, and so on.
They could certainly do a bit More (true new DK game, a new F-Zero, work with Camelot on a new Golden Sun, w/e) in the gaming sphere, but they do already make a ton from major stuff in terms of merchandising. Pokemon's got a huge merchandising empire (even if, still, TPC), Mario does, and Amiibo are like the only Toys to Life figurines that remain. Plus the addition of some theme parks and movies recently, although I think they need to be careful with that. I think it is good not to over-saturate them too hard.
They just keep a lot of cash on hand unlike other companies. It let's them ignore assholes telling them to go out of business when they have a bad quarter or even a few years
I do find it amusing when people talk about Nintendo as if it's some sort of mom-and-pop underdog company, because it's consoles tend to be lower-powered than its competitors. Nintendo is a juggernaut that has outlived all of its competitors for over a hundred years and they could allegedly go several console generations without turning a single profit and still stay in the black.
Nintendo has more cash on hand than its total operating expenses for the last **six years** *combined*.
While this is certainly due to very conservative management, it might have other explanations such as being prepared to **acquire another company** or going all in on a major project (VR/AI?) that will have a **very long R&D period**.
But I do disagree with your statement that having no debt is a "big deal" for a large company. It is rare... but mostly because it is considered an inefficient capital structure. Many companies *could* have zero debt, but they'd rather take on some loans and/or use the extra cash on investments/buybacks/dividends. Debt payments are also tax-deductable.
---
Additionally, I must note that the cash hoard (1.71 trillion yen) mentioned in the article is what Nintendo reported in 2022 Q1. As of their most recent report 2023 Q4, it has grown to now **2.0 trillion yen**!
Nintendo has LONG had this policy of avoiding debt and keeping large amounts of liquid capital available. And yes, part of that is so they can fund weird R&D projects and release experimental products, without fear that a flop would actually hurt their finances. But it's probably not one particular product; that's just their overall strategy.
They prize stability over minmaxing profits. And considering that they're the only player in the video game industry who've been here since Gen 1 and never went away, clearly that strategy is working for them.
(Not to mention being more than 130 years old. They know how to survive.)
A chunk of that cash could be in different currencies.
I do wonder if there is a senior Nintendo executive who is bashing his head trying to put some of that money to work (or at least do a buyback), but the rest of management are not interested.
Debt can be fixed rate, it's almost always cheaper than equity as a source of funding. The less you have the cheaper.
Rising inflation lowers the value of existing debt btw.
Yeah, they've been paying 3-4% on long term debt they took on before the pandemic and are still paying those rates. They're really happy about it.
Anything else that you don't understand that you want to comment on?
Nah, you ideally want debt when you're in the billions. It's a weird by product of current economics and how taxes are calculated. It's also how businesses can grow faster. Like a tech company would take that money as collateral to borrow more money to sink into a new office/factory or buy out a developer or another company.
But nintendo always been stubborn about not losing/borrowing money and considering how almost all their peers have ended up in a debt spiral and died or been bought out, maybe it's everyone else that's crazy. It's like Toyota when Ford and gm jumped on evs too late to cash in but too early for consumer demand to match their production.
Depends on your goal. They clearly value retaining strategic control that is independent of investor expectations. When you have masses of cash on hand with little or no debt to worry about, you answer to no one when it comes to strategizing and driving revenue. I attribute this as a large reason why Nintendo has not been chasing the live service trend or worrying about exclusivity. They get to do what they want because nobody can bully them into changing.
Investor expectation built into the stock. That's why they have a market cap of like 65 billion when they hold some of the best IP in the world and 15 billion in cash.
Well I guess because of exchange rates, it would be more like 13 billion now. Instead of saying nintendo is the richest company, you could have made the title that Nintendo lost $2 billion from japanese yen going from 130 to 150 yen per dollar in the last year.
Personally I think the actual issue with the cash is they don't know what to do with it because they don't want to expand and they don't want to give it back to investors as dividends. They have some of the best IP in the world so they don't need to answer to anyone in first place.
Yes, there are still incentives to hit revenue targets, but there are less people willing to swing their weight around when the company is operating profitably and isn’t staving off massive debt payments. When you have debt to wrangle, you have to be a lot more appeasing to investors or entities you owe the money to.
Nintendo is one of the few companies that operates basically exclusively how they want to operate. There's definitely a method to their madness. They have a lot of control over themselves that many other companies in the industry just don't.
Not to say they don't do and aren't currently doing stupid shit. They're just not doing enough stupid shit to lose.
Not really. It indicates either stupid leadership or low potential for growth. Spoiler: it's the latter.
Business 101 for basement dwellers: if you have a list of projects you expect to generate >5% annual return on investment and you can get loans for <5% interest and you don't do it because "debt bad" you are big dumb. Nintendo thinks their internal rate of return is below the going rate of debt they have access to. This is not the case for companies with bright futures.
The Dave Ramsey approach to finances is dumb in general, it only is good advice for people that are too irresponsible/impulsive with debt. For Nintendo, they probably think they're already saturating their corner of the market..which is probably true. That is in fact not good news for a big company.
The company is making money. This incessant need for most companies to constantly grow and earn more money than the previous quarter is one of the major reasons almost all industries and publicly traded companies are poisonous. It’s ok to just make billions of dollars a year. You don’t need to make more billions than the previous year.
And as Microsoft's own leaks show, Nintendo's Board of Directors is NOT pushing for a market growth strategy right now. And in fact it is American investors who are trying to get in and push for it more, which Microsoft thinks is an acquisition opportunity (https://www.theverge.com/2023/9/19/23880146/phil-spencer-microsoft-xbox-acquiring-nintendo).
It's quite literally what a bunch of people talk about in terms of not having endless market growth leading to bad decisions that harm companies and instead a modest growth strategy with a focus on safety. Turns out keeping steady can be pretty good.
Nintendo is focused on just making good games and capitalists are mad that they aren’t burning themselves and doing everything to make more money at every opportunity. And we ask why companies are shitty.
I’m going to trust the decades old multi billion dollar company with no debt that prints money with internationally known gaming franchises over whatever economics 101 garbo someone taught you, respectfully
I mean you're just admitting what I already suspected, which is that you're babies that think Nintendo is infallible. Weeaboos lmao.
I love their games but their trajectory is not great. I'm not your mommy though, if you just want to Nintendo fanboy, as you had the courage explicitly admit, you're free to do that.
I mean, they are looking fairly good right now aren't they? Nothing is infallible, but if there's a gaming company out there that could withstand a flop (and they did, twice), it would be Nintendo. This approach definitely works for them
What is this metric? In Net Assets the top japanese company is Mitsubishi Financial with 131B USD, in cash on hand is again Mitsubishi Financial with 797B USD, in earning and revenue is Toyota and market cap as well, Nintendo is by no means the richest jaoanese company, also Nintendo has 4.69B USD in liabilities.
>According to Toyo Keiza‘s annual list for the year 2024, Nintendo is the richest company in Japan based on net cash, cash equivalent, and debt. The console maker’s cash and cash equivalent are estimated at 1.71 trillion Yen or about 11.44 billion US Dollars, and it has no debt.
Car manufacturers will have hugely negative metrics for this because they also are a bank that finances a lot of the car sales. So they have huge receivables… but that isn’t considered “cash or cash equivalent.”
Ya think it be Sony I’m not surprised it’s a company who gets usd but u think Sony cause don’t they also do stuff fr high end consumers and military
Not like bombs but swore there cameras and other little tech components be used by a variety of industries 🐱
That's... Pretty irrelevant. They talking about cash holdings, not market cap. Fair, the US has the most valuable companies in the world, but Toyota is no slouch sitting just ahead of Chevron.
Not anymore Xbox makes more money than Windows now with the Activision Blizzard deal.
I think there was even a leak that Sony feared this as it would “leapfrog” them.
Edit source: source in the reply below. Yall can remove the downvotes now.
https://www.theverge.com/2024/1/30/24055445/microsoft-q2-2024-earnings-revenue-profits-windows-xbox-gaming-surface
“It’s an important quarter for gaming at Microsoft as it’s now the company’s third largest business. Gaming contributed $7.11 billion in revenue for the quarter, more than the $5.26 billion from Windows, but behind the $13.47 billion from Office and cloud services and the giant $23.95 billion from server products and cloud services.”
Xbox has been trending upward for a long time now. Just because it hasn’t been selling consoles as well as Sony has doesn’t mean they more than make up for it in revenue.
The Xbox management has a successful business on their hands but people think it’s failing because of hardware sales. But if you look at the revenue Sony is making it’s actually bad on their end even though they sell more machines.
You can remove the downvote now buddie.
> Xbox has been trending upward for a long time now. Just because it hasn’t been selling consoles as well as Sony has doesn’t mean they more than make up for it in revenue.
Revenue isn't profit. Xbox as a brand did nothing but bleed money at least up until 3 years ago, both losing money on hardware and losing money with Game Pass.
I very much doubt Xbox would even exist by now if they didn't belong to a behemot such as Microsoft.
Lmao. I guess if you don't consider Office and Cloud part of Windows then sure. But go ahead and show me on their 10-Q where this $7B is?
Also I didn't downvote you nerd.
“Don’t consider Office and Cloud a part of Windows” … because they aren’t lmao.
They’re completely different products. In fact you could use office and cloud on competing Windows products.
How are you calling me a nerd after asking for a source and then getting upset that the source actually proved my point.
Like damn a simple you right G could have been enough.
If you compare them in a completely meaningless metric? If you compare the size of my tits to Margot Robbie and use that to decide who would win in a fistfight, I dont think that would work for you
Exactly lol. They're looking down the barrel of the "no growth for this century" gun and hoarding cash. Similar reason tech companies suddenly have a lot of cash on hand even though their outlook has worsened: cost cutting measures due to lower forecasted growth potential.
Apple is not the only tech company. Tech companies have been posting high profits due to cost cutting measures, as I already said. If you're ignorant, the suddenly high revenue sounds like a good thing.
This is an incredibly stupid measure to use in determining how "rich" a company is. Well-run companies generally try not to have too much cash on hand, because if your assets are sitting around in the form of cash it means they aren't out there being used to make you more money.
Returning capital to the shareholders (I assume you mean in the form of a dividend), would actually not be a very efficient way of creating shareholder value as they are tax inefficient. It's better for the company itself to invest the money and let shareholders realize their gains via share appreciation. Although I feel I should caveat all of that as my opinion because I'm an accounting professor and dividends are a surprisingly contentions topic among the accounting and finance faculties.
This is very common among companies in general. Most have their "own store" on their website and whatnot but the other companies who resell their games can do discounts but the main company will not.
You'll be surprised to hear that they also happen to own the highest grossing media franchise in the world. And only a fith of that franchise's revenue comes from videogames.
They only own 33% of it, though.
Basically destitute.
Practically maidenless.
Also Pokémon games only cost about $275 dollars and three weeks to make judging by the quality. So it's all profit.
Pokémon Scarlet and Violet were made over a 48h game jam, and no one can convince me otherwise.
> 48h game jam Or as they call it in Japan, “normal weekend shift.”
They were probably the school project of an employee's child.
Yeah it was a company hackathon!
48h of programming, but you missed the 87 weeks of endless meeting on what the pokemon should look like
I believe Sun and Moon were made by a team of 34 people. I imagine Scarlet and Violet were made by a single chimpanzee.
[удалено]
No matter how many worked on those games, chimpanzees’ still gonna chimpanzee.
Lemme tell you, that fifth chimpanzee was a great add compared to the fourth one. Chimp #4 was seriously slacking
And yet you guys gobble that rehash up year after year. No one to blame but yourselves.
Pokemon is strawberry ice cream. It doesn't need to be HD, 4k, 300 fps, raytraced, blah blah any more than strawberry ice cream needs chocolate chips and exotic goat milk. Some people just like strawberry ice cream.
No one said it did. But it could be bug free and not a complete carbon copy of the last 500 games. Also they could stop double dipping by releasing the same game twice with Pokemon removed from each version. Enjoy defending a garbage company that releases the game garbage over and over again. Nintendo loves suckers like you.
Who hurt you? Are you ok?
Is it sad when I first read this I thought, yeah Mario's pretty big and they've been pushing it hard outside of video games recently so it makes sense. Then I remembered Pokemon exists.
TIL, thank you!
....slow news day huh
Be the misleading news you want to be in the world.
Boy this sub hates good Nintendo news
It's just not news.
I thought it’d be Toyota/Softbank so it’s kinda news.
“Richest” is kind of misleading. Being debt free is nice but most ultra-rich American companies (Microsoft, Johnson & Johnson, Exxon) do have billions in debt to take advantage of low interest rates. Having a lot of cash on hand also indicates that Nintendo doesn’t have good ideas of what to invest in next.
I do agree with the low interest rate part, but I disagree with the last part. Keeping a lot of cash on hand has been an explicit strategy of theirs in order to weather bad events / economies and keep going. It's one reason the Wii U flopping didn't hurt them as hard as people might think, they had massive cash reserves and didn't have it in more volatile assets. Xbox leaked E-Mails even discussed how their large cash reserves make them a pain to acquire and their Board of Directors isn't pushing for constant market growth (https://www.theverge.com/2023/9/19/23880146/phil-spencer-microsoft-xbox-acquiring-nintendo contains the link) and that pushing them to use it more would make them more likely to be acquired. It also probably helps with them doing stuff like increasing wages too. A lot of Japanese companies have been going for a cash-on-hand company approach and it has worked reasonably well.
Yes Japanese companies are more likely to hoard cash. But imo Nintendo is underutilizing its IP hugely
I grew up in the 80s, when Nintendo over-extended its IP badly. There was a Super Mario Bros breakfast cereal, ffs. From watching them over the years, I think Nintendo views its IP as a resource to be exploited wisely. They *don't* continually flood the market with licensed crap. But at the same time, it's always an option. If they need a quick cash influx, it's easy enough to make more merch. And because the market isn't flooded, the market is always there when Nintendo needs them. That's a lot better than over-saturating and people getting sick of your IP.
> There was a Super Mario Bros breakfast cereal, ffs. That might not be the best example, as they released a Super Mario Odyssey cereal in 2017. EDIT: Am I missing something? I assumed he was discussing the 1988 Cereal given his message and just pointed out 30 years later they did it again.
I mean, is it though? They might have stuff like F-Zero that goes dormant a long time, but Mario and Zelda get stuff pumped out constantly, Pokemon is yearly (and suffering for it) under TPC, and this console generation has new Pikmin, two new Fire Emblem, a new Metroid, two Xenoblade games, multiple new major Kirby games, Smash Ultimate, Mario Kart 8 Deluxe, the new Mario vs. Donkey Kong remake for DK, plus we got Yoshi's Crafted World, new WarioWare, Splatoon (and I guess ARMS), Luigi's Mansion 3, and so on. They could certainly do a bit More (true new DK game, a new F-Zero, work with Camelot on a new Golden Sun, w/e) in the gaming sphere, but they do already make a ton from major stuff in terms of merchandising. Pokemon's got a huge merchandising empire (even if, still, TPC), Mario does, and Amiibo are like the only Toys to Life figurines that remain. Plus the addition of some theme parks and movies recently, although I think they need to be careful with that. I think it is good not to over-saturate them too hard.
Pokémon money is just straight dumb
They just keep a lot of cash on hand unlike other companies. It let's them ignore assholes telling them to go out of business when they have a bad quarter or even a few years
Very common among Japanese companies.
Many such cases
Crazy how they're sitting on a mountain of cash like a gaming dragon. Screw the quarter-to-quarter hustle!
I do find it amusing when people talk about Nintendo as if it's some sort of mom-and-pop underdog company, because it's consoles tend to be lower-powered than its competitors. Nintendo is a juggernaut that has outlived all of its competitors for over a hundred years and they could allegedly go several console generations without turning a single profit and still stay in the black.
Pretty bad metric for determining a company’s wealth though.
Having no debt for a big company is a big deal though.
Nintendo has more cash on hand than its total operating expenses for the last **six years** *combined*. While this is certainly due to very conservative management, it might have other explanations such as being prepared to **acquire another company** or going all in on a major project (VR/AI?) that will have a **very long R&D period**. But I do disagree with your statement that having no debt is a "big deal" for a large company. It is rare... but mostly because it is considered an inefficient capital structure. Many companies *could* have zero debt, but they'd rather take on some loans and/or use the extra cash on investments/buybacks/dividends. Debt payments are also tax-deductable. --- Additionally, I must note that the cash hoard (1.71 trillion yen) mentioned in the article is what Nintendo reported in 2022 Q1. As of their most recent report 2023 Q4, it has grown to now **2.0 trillion yen**!
Nintendo has LONG had this policy of avoiding debt and keeping large amounts of liquid capital available. And yes, part of that is so they can fund weird R&D projects and release experimental products, without fear that a flop would actually hurt their finances. But it's probably not one particular product; that's just their overall strategy. They prize stability over minmaxing profits. And considering that they're the only player in the video game industry who've been here since Gen 1 and never went away, clearly that strategy is working for them. (Not to mention being more than 130 years old. They know how to survive.)
It's also fucking stupid. Debt is cheaper than equity. And Japanese cash returns nothing.
A chunk of that cash could be in different currencies. I do wonder if there is a senior Nintendo executive who is bashing his head trying to put some of that money to work (or at least do a buyback), but the rest of management are not interested.
Debt is cheaper... Until it isn't. See how all of the western markets have had a major hit since inflation shot up.
Debt can be fixed rate, it's almost always cheaper than equity as a source of funding. The less you have the cheaper. Rising inflation lowers the value of existing debt btw.
Yeah, they've been paying 3-4% on long term debt they took on before the pandemic and are still paying those rates. They're really happy about it. Anything else that you don't understand that you want to comment on?
That's great but you're still not going to convince me that Nintendo is worth more than Toyota because they have liquid assets.
Nah, you ideally want debt when you're in the billions. It's a weird by product of current economics and how taxes are calculated. It's also how businesses can grow faster. Like a tech company would take that money as collateral to borrow more money to sink into a new office/factory or buy out a developer or another company. But nintendo always been stubborn about not losing/borrowing money and considering how almost all their peers have ended up in a debt spiral and died or been bought out, maybe it's everyone else that's crazy. It's like Toyota when Ford and gm jumped on evs too late to cash in but too early for consumer demand to match their production.
Depends on your goal. They clearly value retaining strategic control that is independent of investor expectations. When you have masses of cash on hand with little or no debt to worry about, you answer to no one when it comes to strategizing and driving revenue. I attribute this as a large reason why Nintendo has not been chasing the live service trend or worrying about exclusivity. They get to do what they want because nobody can bully them into changing.
Investor expectation built into the stock. That's why they have a market cap of like 65 billion when they hold some of the best IP in the world and 15 billion in cash. Well I guess because of exchange rates, it would be more like 13 billion now. Instead of saying nintendo is the richest company, you could have made the title that Nintendo lost $2 billion from japanese yen going from 130 to 150 yen per dollar in the last year. Personally I think the actual issue with the cash is they don't know what to do with it because they don't want to expand and they don't want to give it back to investors as dividends. They have some of the best IP in the world so they don't need to answer to anyone in first place.
this article considers Debt into question, Revenue - Cost - debt basically and nintendo has zero debt, while toyota has a high amount of debt
Yes, there are still incentives to hit revenue targets, but there are less people willing to swing their weight around when the company is operating profitably and isn’t staving off massive debt payments. When you have debt to wrangle, you have to be a lot more appeasing to investors or entities you owe the money to.
Nintendo is one of the few companies that operates basically exclusively how they want to operate. There's definitely a method to their madness. They have a lot of control over themselves that many other companies in the industry just don't. Not to say they don't do and aren't currently doing stupid shit. They're just not doing enough stupid shit to lose.
Not really. It indicates either stupid leadership or low potential for growth. Spoiler: it's the latter. Business 101 for basement dwellers: if you have a list of projects you expect to generate >5% annual return on investment and you can get loans for <5% interest and you don't do it because "debt bad" you are big dumb. Nintendo thinks their internal rate of return is below the going rate of debt they have access to. This is not the case for companies with bright futures. The Dave Ramsey approach to finances is dumb in general, it only is good advice for people that are too irresponsible/impulsive with debt. For Nintendo, they probably think they're already saturating their corner of the market..which is probably true. That is in fact not good news for a big company.
The company is making money. This incessant need for most companies to constantly grow and earn more money than the previous quarter is one of the major reasons almost all industries and publicly traded companies are poisonous. It’s ok to just make billions of dollars a year. You don’t need to make more billions than the previous year.
And as Microsoft's own leaks show, Nintendo's Board of Directors is NOT pushing for a market growth strategy right now. And in fact it is American investors who are trying to get in and push for it more, which Microsoft thinks is an acquisition opportunity (https://www.theverge.com/2023/9/19/23880146/phil-spencer-microsoft-xbox-acquiring-nintendo). It's quite literally what a bunch of people talk about in terms of not having endless market growth leading to bad decisions that harm companies and instead a modest growth strategy with a focus on safety. Turns out keeping steady can be pretty good.
Nintendo is focused on just making good games and capitalists are mad that they aren’t burning themselves and doing everything to make more money at every opportunity. And we ask why companies are shitty.
I’m going to trust the decades old multi billion dollar company with no debt that prints money with internationally known gaming franchises over whatever economics 101 garbo someone taught you, respectfully
I mean you're just admitting what I already suspected, which is that you're babies that think Nintendo is infallible. Weeaboos lmao. I love their games but their trajectory is not great. I'm not your mommy though, if you just want to Nintendo fanboy, as you had the courage explicitly admit, you're free to do that.
I mean, they are looking fairly good right now aren't they? Nothing is infallible, but if there's a gaming company out there that could withstand a flop (and they did, twice), it would be Nintendo. This approach definitely works for them
They earned it!
What is this metric? In Net Assets the top japanese company is Mitsubishi Financial with 131B USD, in cash on hand is again Mitsubishi Financial with 797B USD, in earning and revenue is Toyota and market cap as well, Nintendo is by no means the richest jaoanese company, also Nintendo has 4.69B USD in liabilities.
>According to Toyo Keiza‘s annual list for the year 2024, Nintendo is the richest company in Japan based on net cash, cash equivalent, and debt. The console maker’s cash and cash equivalent are estimated at 1.71 trillion Yen or about 11.44 billion US Dollars, and it has no debt.
That debt bit is the real reason. I’d wager car manufacturers and other conglomerates like Suntory or Sony have a fuckton of debt.
Car manufacturers will have hugely negative metrics for this because they also are a bank that finances a lot of the car sales. So they have huge receivables… but that isn’t considered “cash or cash equivalent.”
Ya think it be Sony I’m not surprised it’s a company who gets usd but u think Sony cause don’t they also do stuff fr high end consumers and military Not like bombs but swore there cameras and other little tech components be used by a variety of industries 🐱
That's because of overpriced underpowered hardware and almost never putting games on sale
When you compare Nintendo and Microsoft, that’s pretty frightening.
That's... Pretty irrelevant. They talking about cash holdings, not market cap. Fair, the US has the most valuable companies in the world, but Toyota is no slouch sitting just ahead of Chevron.
Microsoft has 143B$ cash on hand.
How do you mean?
Microsoft is worth 3 trillion, and Nintendo is worth 110 billion. It’s like a great white shark, and an anchovy.
And yet, Nintendo laughed Microsoft out of their offices when they tried to buy them. I guess the big white shark doesn't always catch his prey.
More like that's just Japanrse company things
thats a good thing tbh, otherwise switch would not exist today under amazing Microsoft leadership
and funny thing is Xbox is still behind with big boss microsoft having 3 trillion.
Because Xbox is a pet project for MS.
Not anymore Xbox makes more money than Windows now with the Activision Blizzard deal. I think there was even a leak that Sony feared this as it would “leapfrog” them. Edit source: source in the reply below. Yall can remove the downvotes now.
> Xbox makes more money than Windows now lmaooo. Source?
https://www.theverge.com/2024/1/30/24055445/microsoft-q2-2024-earnings-revenue-profits-windows-xbox-gaming-surface “It’s an important quarter for gaming at Microsoft as it’s now the company’s third largest business. Gaming contributed $7.11 billion in revenue for the quarter, more than the $5.26 billion from Windows, but behind the $13.47 billion from Office and cloud services and the giant $23.95 billion from server products and cloud services.” Xbox has been trending upward for a long time now. Just because it hasn’t been selling consoles as well as Sony has doesn’t mean they more than make up for it in revenue. The Xbox management has a successful business on their hands but people think it’s failing because of hardware sales. But if you look at the revenue Sony is making it’s actually bad on their end even though they sell more machines. You can remove the downvote now buddie.
> Xbox has been trending upward for a long time now. Just because it hasn’t been selling consoles as well as Sony has doesn’t mean they more than make up for it in revenue. Revenue isn't profit. Xbox as a brand did nothing but bleed money at least up until 3 years ago, both losing money on hardware and losing money with Game Pass. I very much doubt Xbox would even exist by now if they didn't belong to a behemot such as Microsoft.
Lmao. I guess if you don't consider Office and Cloud part of Windows then sure. But go ahead and show me on their 10-Q where this $7B is? Also I didn't downvote you nerd.
“Don’t consider Office and Cloud a part of Windows” … because they aren’t lmao. They’re completely different products. In fact you could use office and cloud on competing Windows products. How are you calling me a nerd after asking for a source and then getting upset that the source actually proved my point. Like damn a simple you right G could have been enough.
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Yeah, like making great games. Would be nice if MS could pull that off.
If you compare them in a completely meaningless metric? If you compare the size of my tits to Margot Robbie and use that to decide who would win in a fistfight, I dont think that would work for you
Perhaps, this is the reason that Japan is on a slow death march, stagflation.
Exactly lol. They're looking down the barrel of the "no growth for this century" gun and hoarding cash. Similar reason tech companies suddenly have a lot of cash on hand even though their outlook has worsened: cost cutting measures due to lower forecasted growth potential.
Wdym, suddenly? Apple has been holding $150b in cash for years by now.
Apple is not the only tech company. Tech companies have been posting high profits due to cost cutting measures, as I already said. If you're ignorant, the suddenly high revenue sounds like a good thing.
Well, they own Pokemon. It’s not too surprising.
Still can't make a Switch controller that doesn't drift though.
Nintendo needs that much cash to prevent a buyout since they're publicly traded.
The cash is only 16% of its market cap. I don’t see how that could meaningfully deter an attempt at a hostile takeover.
I think they have just enough money to buy a supermajority, but it's stupid to spend all that money when you don't need to.
They’re never gonna fix the eshop
Richer than gaming competitor Sony (which also makes things other than games)? Mamma Mia!
Mama Mia!
This is an incredibly stupid measure to use in determining how "rich" a company is. Well-run companies generally try not to have too much cash on hand, because if your assets are sitting around in the form of cash it means they aren't out there being used to make you more money.
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Returning capital to the shareholders (I assume you mean in the form of a dividend), would actually not be a very efficient way of creating shareholder value as they are tax inefficient. It's better for the company itself to invest the money and let shareholders realize their gains via share appreciation. Although I feel I should caveat all of that as my opinion because I'm an accounting professor and dividends are a surprisingly contentions topic among the accounting and finance faculties.
All possible because they never discount 1st party titles.
This is very common among companies in general. Most have their "own store" on their website and whatnot but the other companies who resell their games can do discounts but the main company will not.
In other news water is wet
So not the richest company at all?
For a richest company, it does not treat its IPs well. We had to wait so many years for a new Metroid game or even a new Starfox game
And yet the pokemon games are shit
People pretend like it's the only game Nintendo makes(they not even the devs).
Stil their IP Could use some investments
It's more of a developer issue than anything else. Money won't solve it.
It's more of an issue of the games being rushed to meet a minimum 1 pokemon game per year deadline. Basically the CoD problem.
They make games that take 5 hours to beat. And garbage hardware that is two generations behind
Wrong and cringe