Ninty's Droppin Out, Microsoft to take place

  • Thread starter Genocide
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"Being a stockbroker and seeing some interesting comments on this board, I feel I must intervene.

Nintendo does not have 4 billion dollars in cash. It has 7.5 billion. But what must be focused on is not how much cash they have, but how much they are willing to use. Nintendo rarely takes cash out of their cash pile-- it is there as an emergency fund. Nintendo, like Sony, has chosen to pay dividends which are a portion of the profit that the company makes. Only Nintendo has promised to pay dividends in periods of no profit-- and that is why the cash reserves are as large as they are even though they aren't nearly as massive a company as the less-cash loaded Sony. Nintendo has money but it just doesn't use it in the way Microsoft uses it's own.

And the rest of you are correct in stating that Microsoft has a 40 billion dollar pile of cash. Interesting enough though, by the end of this fiscal year that same cash pile that Microsoft so freely uses will have ballooned to 50 billion dollars. Microsoft makes more money in 3 days than Sony does in 365.

And the Nintendo 64 did make money but that doesn't necessarily mean it was a financial success. In the most basic economics it was, but the money saved by not pursuing a successful console probably far outweighed the profits gained from having a console. Which is exactly why Nintendo IS dropping out of the console race.

I'm suprised not enough of you realize what Nintendo meant by it's last few major press releases. Although nothing was said literally about Nintendo leaving the console race (yet), if you use a bit of common sense and logic and read in between the lines you'll realize that Nintendo has already decided that GameCube is it for them in the console wars. And they most definitely won't get into a bidding war with Microsoft for Rare-- after all, Rare is going to be useless to Nintendo very soon. Why do you think Left Field left? Why do you think Rare has been so eager to leave? It is most obvious to those who have been under Nintendo's wing where Nintendo is going in the console race for the future-- nowhere. This isn't a biased Nintendo bashing. It is just simply Nintendo leaving the console race after GameCube and Nintendo's second parties don't want to sink with the titanic.

To be honest, i'm not all that big of a gamer. But i'm extremely interested in Microsoft's business tactics and their involvement with the industry and want you crazy Xbox fans to know this --- Microsoft is never going to leave the industry and Microsoft will eventually destroy it's competition. It's just not financially possible for Sony to compete with Microsoft in the long run. Money = Resources and if a country goes into a war with the most resources, they're going to win. Same applies in this case.

To make an analogy, think of Microsoft as the United States. 9.9 trillion dollar economy. Now remember that financially, Microsoft is about 25 times larger than Sony. Sony is like Australia, only a bit more weak. Now imagine for a second the United States invading Australia.

Poor analogy, I know, but it is at least partially accurate. Microsoft is just going to slowly but surely drain Sony and tear them to shreds."

:odd: Hmmm... Interesting
 
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