Nintendo VS Toyota ??????
Discussion
Joystiq said:
Money-printing console maker Nintendo has now become the number two company in Japan in terms of market capitalization, beaten only by automaker Toyota, according to Financial Times.
Nintendo, whose value is currently 8.39 trillion yen (approx. US $73.2 billion) has just edged out Canon's market cap of 8.12 trillion yen. Don't expect the House of Mario to surpass Toyota, however, as its value nearly three times that of Nintendo's at 24 trillion yen.
The company surpassed Sony in late June this year when it reached a now-meager 6.54 trillion yen. Despite the dramatic increase in value, the Financial Time notes that many analyst believe Nintendo is still not overvalued, given its conservative profit forecasts and favorable currency exchange rates. With any luck, Nintendo can use all this newfound wealth to ensure there won't be a shortage of Wii consoles or copies of Smash Bros Brawl this holiday.
wowNintendo, whose value is currently 8.39 trillion yen (approx. US $73.2 billion) has just edged out Canon's market cap of 8.12 trillion yen. Don't expect the House of Mario to surpass Toyota, however, as its value nearly three times that of Nintendo's at 24 trillion yen.
The company surpassed Sony in late June this year when it reached a now-meager 6.54 trillion yen. Despite the dramatic increase in value, the Financial Time notes that many analyst believe Nintendo is still not overvalued, given its conservative profit forecasts and favorable currency exchange rates. With any luck, Nintendo can use all this newfound wealth to ensure there won't be a shortage of Wii consoles or copies of Smash Bros Brawl this holiday.
I can't wait!!!Its not surprising that this is the case, as they make a profit from every DS and Wii they sell. Obviously they make money on the licensing of the games and selling their own. So its hardly rocket science to figure out that they would make a massive amount of money at the moment.
The problem is that they have a different business model to Microsoft and Sony at the moment. Both Microsoft and Sony will have longer cycles for their consoles and hence loose money at the moment - but in the knowledge that the will make it by the bucket load when it comes to half-way through their current consoles. What was the figure? When Sony released the PS3, they had the most sales of the PS2 EVER - and that is currently their cash cow.
The problem with Nintendo is that they need the money NOW so that they can invest the money in getting the future consoles and products ready. That will keep the company running, but is it a model which will work in the long term? Not sure, and to be honest the analysts should know this. Its a big unknown for Nintendo at the moment and with the lack of headline Wii titles, they are still at risk of dropping of the face of the market at the end of 2008. To give you an idea, the Xbox360 tripled its console sales at the launch of Halo3 - only just beating the Wii on number of units sold. Does the Wii have a blockbuster like this to boost sales for Christmas, holidays next year and for the end of 2008?
Then again, it wasn't long ago that Nintendo was running at a loss, so I am sure they are lining the company coffers just in case that time comes again. Lets see....
The problem is that they have a different business model to Microsoft and Sony at the moment. Both Microsoft and Sony will have longer cycles for their consoles and hence loose money at the moment - but in the knowledge that the will make it by the bucket load when it comes to half-way through their current consoles. What was the figure? When Sony released the PS3, they had the most sales of the PS2 EVER - and that is currently their cash cow.
The problem with Nintendo is that they need the money NOW so that they can invest the money in getting the future consoles and products ready. That will keep the company running, but is it a model which will work in the long term? Not sure, and to be honest the analysts should know this. Its a big unknown for Nintendo at the moment and with the lack of headline Wii titles, they are still at risk of dropping of the face of the market at the end of 2008. To give you an idea, the Xbox360 tripled its console sales at the launch of Halo3 - only just beating the Wii on number of units sold. Does the Wii have a blockbuster like this to boost sales for Christmas, holidays next year and for the end of 2008?
Then again, it wasn't long ago that Nintendo was running at a loss, so I am sure they are lining the company coffers just in case that time comes again. Lets see....
LDNrevs said:
off_again said:
Does the Wii have a blockbuster like this to boost sales for Christmas, holidays next year and for the end of 2008?
Yea, they have Mario Galaxy, and Mario Kart, and a new Red Steel on the way tooOh, and 2 additional blockbusters are the Star Wars game and the Wii mat thingy - both of these will sell loads more Wiis, even if they aren't scheduled this Xmas.
Edited by kiwisr on Sunday 21st October 11:10
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