tag:blogger.com,1999:blog-1266849339642465656.post7857621824747123327..comments2023-10-31T09:10:20.056-07:00Comments on Nintendo Stock: Nintendo Upward Guidance A CertaintyDr. James V. Bakerhttp://www.blogger.com/profile/03558589991874155455noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1266849339642465656.post-66625451229582259832007-07-05T20:59:00.000-07:002007-07-05T20:59:00.000-07:00As John Maynard Keynes said, "In the long run we a...As John Maynard Keynes said, "In the long run we are all dead."<BR/><BR/>Nintendo is far too conservative as evidenced by the nearly $8.2 billion in cash and deposits it held on March 31, 2007 and the $1.22 billion it has in equity capital. Fortunately, they have not used that cash to go on a spending spree buying companies it does not need. <BR/><BR/>Shareholders need to be concerned that such a large cash position could cause Nintendo to be caught napping by a bank failure. Furthermore, interest rates in Japan are virtually zero so that cash generates a poor return.<BR/><BR/>I estimate Nintendo's current market share at 19% of the total video game industry (hardware and software). <BR/><BR/>In 1992 its market share in Japan was 90-95% and in the U.S. it was 70%. At its current pace it should easily have 50% of the market by 2012.<BR/><BR/>Nintendo lost the game developers because the developers were forced to buy proprietary cartridges from Nintendo at exhorbitant prices in bulk. Nintendo also got the reputation of being arrogant and tough to deal with. It was essentially Nintendo's way or the highway. <BR/><BR/>Game developers naturally flocked to Sony in droves when the PS was introduced with its CD Rom system. The CDs cost developers a few pennies versus $20 for the Nintendo cartridges.<BR/><BR/>These factors and complacency by Nintendo caused it to fall from the lofty heights of 1992. Shareholders have to hope that Nintendo doesn't allow that to happen again. I am confident that they have learned their lesson.Dr. James V. Bakerhttps://www.blogger.com/profile/03558589991874155455noreply@blogger.comtag:blogger.com,1999:blog-1266849339642465656.post-70212703254209178742007-05-14T01:28:00.000-07:002007-05-14T01:28:00.000-07:00Do you think that Nintendos very conservative corp...Do you think that Nintendos very conservative corporate culture can help the company in the long term?<BR/><BR/>Due to a complete relaunch of its product line could Nintendo expand its marketshare actually in a new market while loosing the old one.<BR/>One example being the fact that Nintendo factually lost nearly its complete marketshare in the console space for hardcore gamers for eg.<BR/><BR/>Ok we have new products and with them great sales but looking at Nintendos corporate culture can it really survive in the "very long" term?<BR/>An answer would be really appreciated!Arafat Medinihttps://www.blogger.com/profile/06259871022041866332noreply@blogger.com