In 5 years, Nintendo will be owned by Disney
So, inflammatory headline activated. But listen to my reasoning
+ By all accounts, console gaming is going just one part of a connected living room approach that will be heating up over the next few years. Nintendo has shown itself to be not the best at system software (for example, dog slow wii u menu loading time) and slow on the uptake with online services
+ The Wii U didn't sell well in its first quarter, and it didn't seem to be for supply constraints. And it seemingly only gets worse from here, with new xboxes and ps4's on the close horizon.
+ the DS, doing decently now, having its market continually encroached on by mobile
For those and other reasons I see the next 3-4 years being very hard on their hardware business, which in turn depresses high margin software sales. It will be increasingly hard for them to stay in the hardware business, and this cry for them to release Mario, Zelda etc games on platforms with wider audiences will increase. The Wii U will be the last generation of Nintendo living room hardware.
Now comes Disney. Disney has shown over the past few years that it is interested in increasing its stake in marketable characters for children, buying the Muppets from Jim Henson Co., finally acquiring Pixar in full and now bringing in Lucasfilm properties. If Nintendo is on the ropes a bit, Disney could swoop in pick up a stable of the next most beloved characters to their own.
Do you disagree that this is the cusp of really tough times for Nintendo? If they get to a market cap where they could be acquired easily, is there a more likely suitor than Disney?