Interesting stuff about Nintendo leaving the console race and Microsoft destroying So

**xboxtito** · 09-10-2002

I got this from planetxbox. So what does everyone think?

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.

**GokuX** · 09-10-2002

Interesting post you got here tito. I'd say post it up in the Xbox vs Gamecube debate forum and see what comes of it, you'll get more responses from the Nintendo side of the fence.

**DZNUTZ** · 09-10-2002

i agree completley xboxtito.

and i thought i was the only person in the financial industry on this board.

how long have u been in the biz?

**DZNUTZ** · 09-10-2002

my..i'm now guessing i read that wrong....someother guy who is a broker posted that elsewhere.

eh...regardless...i still agree with the post.

**Slacker** · 09-10-2002

thats common sense , one of the major reasons I bought an Xbox was because Microsoft Dominates and Destroys every battle they confront

**JeremyX** · 09-10-2002

I just hope Xbox gets the Zelda licsence. That was a great post. I've heard that no one(game mags/sites)wants to even touch this subject. not yet anyways, because it's just so unbelivable. Not to mention the backlash GC fans would give them for printing that.

**VenoM** · 09-10-2002

hmm...dont feel like reading all that but i doubt nintendo will stop making consoles.....imo nintendo will always have a market no matter what other consoles are out....everybody knows and trusts nintendo(atleast the older people who grew up in the early nintendo error)......there first party games are like no other...just first party games from nintendo is enough to keep nintendo alive and very loyal fans (that be me

) and zelda will never ever go to xbox or ps2...thats like wishing mario would go to ps2 or xbox..just doesnt seem right at all......i remember reading somewhere that ms approached nintendo about selling and the owner laughed at ms..thought ms was joking....if they were really in trouble they would of sold right there.......the bin N will never ever die.....long live nintendo

the true resurrector of gaming.............in the future i do see ms high up there but i also see nintendo...one comapnay that i think will go down is sony though..thats what i predict

**HALOJAY** · 09-10-2002

I agree with the part about Nintendo dropping out of the race, but I am not sure that MS will be the only console company out there. This is an industry that is dominated by innovation and there will always be someone out there with an idea for a better mousetrap, so to speak. Sony may not be that someone but there is always room for competition.

**japes1** · 09-10-2002

Originally posted by VenoM
hmm...dont feel like reading all that but i doubt nintendo will stop making consoles.....imo nintendo will always have a market no matter what other consoles are out....everybody knows and trusts nintendo(atleast the older people who grew up in the early nintendo error)......there first party games are like no other...just first party games from nintendo is enough to keep nintendo alive and very loyal fans (that be me ) and zelda will never ever go to xbox or ps2...thats like wishing mario would go to ps2 or xbox..just doesnt seem right at all......i remember reading somewhere that ms approached nintendo about selling and the owner laughed at ms..thought ms was joking....if they were really in trouble they would of sold right there.......the bin N will never ever die.....long live nintendo the true resurrector of gaming.............in the future i do see ms high up there but i also see nintendo...one comapnay that i think will go down is sony though..thats what i predict

Don't cry k

**Gimpy Mcgee** · 09-10-2002

Originally posted by VenoM
hmm...dont feel like reading all that but i doubt nintendo will stop making consoles.....imo nintendo will always have a market no matter what other consoles are out....everybody knows and trusts nintendo(atleast the older people who grew up in the early nintendo error)......there first party games are like no other...just first party games from nintendo is enough to keep nintendo alive and very loyal fans (that be me ) and zelda will never ever go to xbox or ps2...thats like wishing mario would go to ps2 or xbox..just doesnt seem right at all......i remember reading somewhere that ms approached nintendo about selling and the owner laughed at ms..thought ms was joking....if they were really in trouble they would of sold right there.......the bin N will never ever die.....long live nintendo the true resurrector of gaming.............in the future i do see ms high up there but i also see nintendo...one comapnay that i think will go down is sony though..thats what i predict

You hit the nail right on the head, nowhere in any of Nintendo's press releases did they mention anything about leaving the hardware market. It is true MS offered Nintendo a large sum of money for the company and Big N basically laughed at MS and then proceeded to **** on thier shoes. MS also tried to buy out Sega but no luck thier either. All of that rejection made Bill Gates a bit steamed so he said and I quote"Nintendo will be dead in a year" He might not be good at predecting the future but his company makes a fine game console.

**Goku_69** · 09-11-2002

It may take more than a year but it will happen sooner or later. Nintendo hasen't even mentioned a new console and every one already knows about ps3 and xbox2. Nintendo will keep making gamecube games untill people are sic of it then they will cash in on all there copyrights.

**JeremyX** · 09-11-2002

zelda will never ever go to xbox or ps2...thats like wishing mario would go to ps2 or xbox..just doesnt seem right at all......i remember reading somewhere that ms approached nintendo about selling and the owner laughed at ms..thought ms was joking....if they were really in trouble they would of sold right there.......the bin N will never ever die.....long live nintendo the true resurrector of gaming.............

People also thought that Sonic would never go to Nintendo. Now where's our lovable Hegdehog? On the GC of course.
I highly doubt that you read "somewhere" that MS contacted "the owner" about selling. You are extremly vage in your statments, and the statement, "long live nintendo the true resurrector of gaming" only makes you sound like a fanboy.
I own a GC and love Nintendo's games but this is news that has been rumbling for some time now. Everything that Nintendo has done and said has pointed to their leaving the console biz.
Nothing they said or done has hinted other wise. Base your judgment on facts not your ignorance. I mean you didn't even read what the post had to say for crying out loud. How can you make a judgment off that!??

I'll be shocked if you read this entire post.

**Gimpy Mcgee** · 09-11-2002

Originally posted by JeremyX

People also thought that Sonic would never go to Nintendo. Now where's our lovable Hegdehog? On the GC of course.
I highly doubt that you read "somewhere" that MS contacted "the owner" about selling. You are extremly vage in your statments, and the statement, "long live nintendo the true resurrector of gaming" only makes you sound like a fanboy.
I own a GC and love Nintendo's games but this is news that has been rumbling for some time now. Everything that Nintendo has done and said has pointed to their leaving the console biz.
Nothing they said or done has hinted other wise. Base your judgment on facts not your ignorance. I mean you didn't even read what the post had to say for crying out loud. How can you make a judgment off that!??

I'll be shocked if you read this entire post.

I dont mean to butt in on you insult too venom, but if you are going to call somebody ignorant because they have a different opinion atleast you could get informed on the subject. It is absolute truth that MS tried too buy out Nintendo, Sega, and many other companies it's a common business tactic. Nowhere in any of Nintendo's press release's have I read that they were leaving the hardware market in favor of becoming a 3rd party developer. They said that they wanted to concentrait on games instead of hardware for the time being, take that how you will but I think it was a shot at MS and Sony because of thier frantic efforts at out doing each other in terms of hardware for thier next consoles instead of applying those efforts on games(my educated opinion). Shigeru Miyamoto (or whatever his name is) said that they want too give GC the longest life possible before they worry about thier next console. I liked your sonic analogy, but thier is one key difference between Sega and Nintendo. Nintendo is a making alot of $ with thier hardware. If Nintendo really was going to give up the hardware market then why would they buy Retro Studios? Why would Nintendo give millions of $ to Factor 5 and Silicon Knights for contracts that last for the next 5-7 years? not only is GC in 2nd place in world wide sales, but Nintendo is also venturing in a different hardware market: Arcades with thier TriForce arcade board (basically a GC in a arcade machine) wich is backed by Namco, Sega, and now Capcom. Nintendo leaving the hardware market just doesnt add up at this point.

Of course I would be willing to change my thinking on the subject if someone can come up with a decent arguement or concrete proof that Nintendo really is leaving the hardware business.
My post is filled with facts and some things that are my opinions. I realise that the industry can change dramatically and instantly but thier has been no such evidence that Nintendo is leaving.

Now you can call me a fanboy if you want, im sure others will. Regardless of what some of you may think im not biased. I own both Xbox and GC, as for what console I think is better it changes depending on what games that are out for each system. Right now GC is collecting dust, I have too brush up on my Halo skillz for all of the tournaments im hearing about

**beserker** · 09-11-2002

"Nintendo will be dead in a year"

Give me the link oh mighty one,because I never heard that.I do however hear alot of negative from sony's and nintendo's camp.

**Spaztic** · 09-11-2002

I bet nintendo is going to become a software company and begin porting its mario, donkey kong, zelda series to the advailable platforms!

**xboxtito** · 09-11-2002

Nintedo possibly leaving is a huge deal and the fact that Microsoft is some how behind it does not surprie me. look at the facts, before the Xbox came out everything looked good for Nintedo. Sega had left and started making games for them and the Gameboy advanced was doing huge bussiness. Now all of a sudden they are possibly abandoning the gaming hardware business. I think Microsoft used pressure and money to talk Nintedo into this. I am sure the Gameboy is a big part of this too. Microsoft most likly wants it so they can rule the hand held market as well. Like I said if Nindendo falls Sony is not to far behind.

**JeremyX** · 09-11-2002

I respect what you said because you've made your judgments on facts. I still think that they will drop out but thats my opinion. I've checked my facts and have not heard anything about MS trying to by Nintendo. Can you show me a link or somthing to prove this. It would be news to me.

**DOOM** · 09-11-2002

Originally posted by VenoM
just first party games from nintendo is enough to keep nintendo alive and very loyal fans (that be me ) and zelda will never ever go to xbox or ps2...thats like wishing mario would go to ps2 or xbox..

Thats What They Said About SEGA & SONIC!

**Jarvis** · 09-11-2002

I would absolutely never put anything past microsoft. in this case, it's them ever leaving the console race. you know damned well M$ is here for the longest haul of them all.

i predict nintendo will put out one more console, i don't think they will quit right after the gamecube, but i do not believe they can keep keeping up with powerhouses like microsoft and sony for a decade or more.

and imagine the game sales if nintendo went something like sega. imagine stuff like mario, zelda, metroid being on xbox 2/3, or sony 3/4. it would absolutely destroy in terms of game sales.

-jarvis

**OppiumNitrates** · 09-11-2002

Nice post

I agree that the big N is forshadowing there end of the hardware production. And when they go eighter their games will be mulit platform(most likly since they can make the most $$ this way) or the license's of all their top games will be bough by Sony or MS. And the pocketbooks speak for them selfs if that happends.