Tuesday 25 March 2014

Bobby Jain Credit Suisse & Nintendo's Profitability

By Rob Sutter


On the surface, it's easy to write off Nintendo as one of the "big three" video game companies that seems to be in the most dire of straits. After all, the Wii U has not exactly sold tremendously like the PlayStation 4 and Xbox One has. While they seem to have the attention of the gaming audience in general, Nintendo's console does not seem to have that level of attention tied to it. This does not necessarily mean that business is down, though, as the idea of profits is one that Bobby Jain Credit Suisse can focus on.

Keep in mind that Nintendo has a tremendous amount of money in the bank, stored away in case financial matters seem dire. This is one of the precautions that has helped the company over the course of time, especially when in comparison to the competition. When you look beyond the consoles that Sony and Microsoft have produced, their business models do not seem to be steady foundation. For example, Sony had to close down one of its major offices in recent times in order to keep costs down.

Nintendo may not exactly be in the clear in terms of business in general, though. Keep in mind that while the 3DS is doing extremely well in terms of the handheld market, the Wii U seems to be all but lost on the console side of things. Sales have not exactly been roaring, even though there have been many different titles released by not only Nintendo but third-party companies. Nintendo's bank account has been crucial but I do not think that people understand just how crucial this has become.

There is talk that Nintendo has, in American currency, $10.5 billion, which is a strong number when looking at Bobby Jain Credit Suisse. What this means is that, if Nintendo wanted, it would be able to go about making considerable losses during a few decades, at least. It's a great financial move to make, as names like Jain can support, but it is one that allows the company a considerable cushion. One can only imagine that this would allow more time to learn about the rapidly growing nature of the gaming industry without losses proving to be dire.

As far as public standing is concerned, it is clear that Nintendo can do much better for itself. The idea of the Wii U being a generation behind in terms of specs is an aspect that made it lose points in the eyes of gamers who longed for the next great console. Does this necessarily mean that Nintendo is gone after this generation of console has passed us by? If anything, the extensive bank account that the company has goes to show that the company can make losses for, at least, a bit longer.




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