Would Apple ever Purchase Nintendo?

Posted by mrnoglue on February 4, 2013 02:33 am 33

Introduction

I am sure this has been discussed before, but what do the members of the Apple Core think of a possible acquisition of Nintendo by Apple? I think it might make sense for a number of different reasons, of which I will now break down:

1. Apple could use an "in" in the gaming market

Any list of Apple's biggest competitors in the consumer electronics market is sure to contain Sony, Microsoft, and Samsung. Both Sony and Microsoft have gaming departments, gaming consoles, and a mature gaming audience. Apple has a vibrant game developer community, but it is not as mature as the community surrounding Sony and Microsoft. Acquiring Nintendo would give Apple an "in" in this developed market.

2. Similarity of Apple and Nintendo's Design Philosphy

Both Apple and Nintendo have similar design philosophy. Design, for both companies, is centered around simplicity and ease of access. Nintendo caters to the casual, individual gamer, as Apple caters to the casual, individual computer user. This similar outlook in design may make this acquisition a good match for both companies.

3. Nintendo is "Affordable"

With a market cap of $13.65 Billon, Nintendo is rather cheap for Apple. Even assuming a 2x mark up, Apple could easily afford to part with $27 Billion. The question is whether or not they would get a return of this investment. That is a hard question to answer.

4. Nintendo's Software could serve to differentiate Apple's iOS

An exclusive deal to distribute Nintendo's gaming titles may serve to differentiate Apple's iOS in the crowded phone and tablet market. This could be a prominent feature in iOS 8 or 9. In other words, Apple could kill the Nintendo hardware market and still realize significant value from the acquisition.

Conclusion

Anyway, I would love to hear the thoughts of the Apple Core on this topic. Is it a good idea? Would the ROI be high enough? Would nintendo's catalogue draw you to iOS, or keep you there if you are already a user?

I, for one, would love to play mario and zelda on my phone.