Well done, Rei! I like setups like this very much. RAM will not stay that expensive forever….this place is safe to wait it out. As you said, the company can survive years without cashflows….
You need to revise your post regarding Sony. Their gaming business is massively profitable. I also don’t know where you got the idea that Sony has large debt. I suspect you are referring to the liabilities of Sony financial but liabilities are not debt and furthermore they spun off Sony financial this year. This is clearly detailed in Sony‘s last quarterly report (Q3 2025). Your reporting is blatantly off. Soy has net cash as cash is larger than the little debt post spinoff.
This does not take away from your assessment regarding Nintendo , which I agree with. This is more of a sector issue than idiosyncratic to Nintendo as Nintendo, Sony and Bandai Namco etc all have sold off and the latter does not even have a hardware business.
Fair catch. I missed the recent Sony Financial spin-off in my models, so I am dead wrong about their debt load. Fixed the numbers in the article.
However, your point about Bandai Namco also tanking proves my core thesis. The market is blindly dumping the entire sector over an overhyped AI demo and price increases on top-end AI training hardware... Time to buy more Japanese gaming stocks?
Thanks for the article! Do you have an estimate of their through the cycle net income for this cycle? And what do you think a fair multiple would be for these earnings?
I think they are capable of overcoming the previous high in NI this time, but I’m not so sure about the average net income through the cycle.
Well done, Rei! I like setups like this very much. RAM will not stay that expensive forever….this place is safe to wait it out. As you said, the company can survive years without cashflows….
You need to revise your post regarding Sony. Their gaming business is massively profitable. I also don’t know where you got the idea that Sony has large debt. I suspect you are referring to the liabilities of Sony financial but liabilities are not debt and furthermore they spun off Sony financial this year. This is clearly detailed in Sony‘s last quarterly report (Q3 2025). Your reporting is blatantly off. Soy has net cash as cash is larger than the little debt post spinoff.
This does not take away from your assessment regarding Nintendo , which I agree with. This is more of a sector issue than idiosyncratic to Nintendo as Nintendo, Sony and Bandai Namco etc all have sold off and the latter does not even have a hardware business.
Fair catch. I missed the recent Sony Financial spin-off in my models, so I am dead wrong about their debt load. Fixed the numbers in the article.
However, your point about Bandai Namco also tanking proves my core thesis. The market is blindly dumping the entire sector over an overhyped AI demo and price increases on top-end AI training hardware... Time to buy more Japanese gaming stocks?
Thanks for the article! Do you have an estimate of their through the cycle net income for this cycle? And what do you think a fair multiple would be for these earnings?
I think they are capable of overcoming the previous high in NI this time, but I’m not so sure about the average net income through the cycle.