The internet is a wonderful place because not only is there a wealth of information on hand, but sometimes people can write something which is brought to the attention of the mainstream press. David Talley, an author on the blog network wrote a piece regarding a potential takeover for Apple and it has caused a lot of debate.
In the piece he suggests that Apple should consider the takeover of Nintendo, who have a market cap of $17.5 billion. There is no doubt that Apple could afford to buy them, but why would they?
Talley claims “Apple is looking to make its first real debut in the living room, a room that is at various times a place to casually enjoy television, a home theater, and a gaming center. I trust Apple will master the first two areas with its iTV, but I am skeptical they will introduce anything more than scaled up versions of iPod and iPad games to satisfy the third.
If Apple were to buy Nintendo, they would acquire valuable hardware, experience, and an audience. Nintendo has always been on the cutting edge of gaming. Their last round of innovation, the Wii, was the first to introduce motion control gaming. Admittedly, Microsoft’s (NASDAQ: MSFT) Kinect platform has since surpassed Wii’s technology, but I think it is fair to speculate that Nintendo is working on gaming technology somewhere between the Wii and Kinect.
He continues with his analysis “More importantly than hardware, Apple would acquire a team well versed in console video games. This team has survived the war brought on by Microsoft’s Xbox and Sony’s (NYSE: SNE) Playstation. These competitors packed their systems full of technology and sold them at a loss to consumers. Nintendo survived through superior innovation and strategy when their wallet did not allow them to compete. This team would be an extremely valuable asset to a company looking to make a successful entrance into gaming.
Lastly, Apple would acquire an audience. Nintendo is a well-established brand that has the power to bring along users. Moreover, Nintendo’s audience is largely than the one Apple is aimed for: the casual gamer and the party gamer. Apple, like Nintendo, realizes that it will never get the hardcore gamers (or the companies are not interested in supporting the violent games most hardcore gamers flock to). Instead, both companies provide fun, easy to learn, easy to play games. These are games that can be enjoyed without spending hours of time practicing and can easily be learned at a party. Nintendo’s past success with casual and party games would encourage causal and party gamers to try Apple’s system.”
They would certainly ‘acquire’ an audience, but would it be worth the billions of dollars cost? Could Apple incorporate Nintendo into their brand identity and operate them as a ‘gaming’ division of the main organisation. Logistically it sounds like a nightmare, but who knows, perhaps Talley is onto something.
Kitguru says: Could this make way for an Apple designed Nintendo style 10 inch tablet? The sky is the limit!