When I look over all the games (and indeed, IT in general) companies out there, Nintendo strikes me as the one that really should be acquired next. Why? Because it would be a massively beneficial acquisition for both Nintendo, and whoever acquires it.
Based on the 3DS, and what seems likely to be in the successor to the Wii (currently titled Project Café), one thing that has struck me about Nintendo is how much it is struggling to find relevance in a market that is increasingly about offering more that one service. The PlayStation 3 and PSP offer movies, subscription music services, comics, remote play and TV. The Xbox 360 has streaming Pay TV and a whole host of other services within its subscription online account. The iPhone and the iPad feature gaming almost as an afterthought – they do movies, music, social networking, non-gaming apps, and just about everything else.
Nintendo is struggling to get 3D movie deals for the 3DS. The closest it’s come to social networking is a Facebook upload service for the 3DS. Though the Wii had a handful of non-gaming applications, they were typically quite poor and certainly inferior to what the competition offered. In the US there was Netflix, but the US is just one market – in Australia for instance there was no alternative offered, but both Sony and Microsoft have movie services through their respective consoles.
The “it’s all about the games” approach is in some ways admirable, but I don’t think it’s deliberate on the part of Nintendo – it’s an approach that’s been forced on the company by circumstance. Nintendo has never made a significant hardware acquisition. Where Sony, Microsoft and Apple have heritages (or have made acquisitions) in music, computers and phones, Nintendo is a toy manufacturer that saw success in gaming. It owns some immensely valuable IPs and software developers, but as a hardware manufacturer, it’s now isolated.
It’s tried to compete with the other guys. Project Café features a removable touch screen on the controller that will essentially function like a gaming tablet on the go… except no one will buy into that, and software support will likely be quite light (remember when Sega tried that with the Dreamcast?) The only genuinely successful tablet developer to date has been Apple, and Nintendo faces a mountain to climb if it hopes to attract developers away from Apple.
Then there’s the online and social functions, that Nintendo has struggled to bring up to scratch. Again, not Nintendo’s fault – it’s heritage isn’t in this space, so it’s essentially starting from scratch when the other guys – Microsoft in particular – have been there for years and years.
Nintendo just doesn’t own the non-gaming skills and capabilities for it to be able to compete with the way the market is heading.
Which is exactly why it would be an amazing acquisition for another company. Combine Nintendo’s creativity, its IPs and its gaming hardware R & D people and facilities with the broader vision of an Apple, Microsoft or Sony, and you have a Nintendo that doesn’t need to struggle and get scrappy to compete – you have a Nintendo that can soar uninhibited by its own limitations. That would be an incredible sight to see.
Of the three, I would like to see Apple acquire Nintendo. Apple needs some beefing up in its gaming vision (though it’s made clear steps to recognise the value of that), and Nintendo would benefit massively if its online hardware was based on the App store infrastructure.
Apple has the money for it, that’s for sure.
What do you think? Would Nintendo benefit from the infrastructure and resources of these far larger companies?
Well, Sony hasn't been exactly great with managing money, and Microsoft has had pretty poor financial success with its gaming division as well.
Apple has the iPhone/iTunes market pretty secured, but I don't think video games is what they need, though they may be going that route. It seems that no matter what Apple releases, it will sell by the boat loads.
I always find it funny so many people will criticize Nintendo for not doing things that are "standards", yet Apple has been the same way over the years with their own products. iPods didn't feature built in radio receivers or voice recorders for years, yet others had them in MP3 players, and for cheaper than the alternative iPod offerings at the time.
I think the dark horse here would actually be Google. Google is trying to take on Apple in the phone market now, and they are HUGE. Google is getting a games division up and going, slowly but surely, and they have cash they could burn.
In all honesty though, I don't like acquisitions in general. They usually result in more bureaucratic garbage, and appealing to the stockholders with layoffs of employees.
If Nintendo just created some good partnerships, as has been rumored for Project Café's online service, I think they could improve on some areas with no need for them to be acquired.
Well, Sony hasn't been exactly great with managing money, and Microsoft has had pretty poor financial success with its gaming division as well.
Apple has the iPhone/iTunes market pretty secured, but I don't think video games is what they need, though they may be going that route. It seems that no matter what Apple releases, it will sell by the boat loads.
I always find it funny so many people will criticize Nintendo for not doing things that are "standards", yet Apple has been the same way over the years with their own products. iPods didn't feature built in radio receivers or voice recorders for years, yet others had them in MP3 players, and for cheaper than the alternative iPod offerings at the time.
I think the dark horse here would actually be Google. Google is trying to take on Apple in the phone market now, and they are HUGE. Google is getting a games division up and going, slowly but surely, and they have cash they could burn.
In all honesty though, I don't like acquisitions in general. They usually result in more bureaucratic garbage, and appealing to the stockholders with layoffs of employees.
If Nintendo just created some good partnerships, as has been rumored for Project Café's online service, I think they could improve on some areas with no need for them to be acquired.
Google is a possibility I didn't think of – it would love to have Nintendo managing its gaming side of things I'd wager.
I wasn't criticising Nintendo in the piece above – far from it, but I do think Nintendo is going to start to really struggle from this generation onwards (and it's already struggling with the 3DS). When it comes to consumer electronics most people are looking for convergeance – people don't want a phone for calls, an ereader for books, a Nintendo handheld for games and a tablet/ laptop for work on the go. They want it all together.
A corporation has the responsibility to go after as large a market as possible. Nintendo will struggle to do this, where Sony, Microsoft and Apple all enjoy the infrastructure and capabilities to offer people "everything in one box."
So I think from a purely competitive standpoint, Nintendo should look to be acquired. The end user probably won't see much change – there might be a new "app store" digital shop front, but otherwise Nintendo is a valuable brand, it will be kept as a separate subsidiary.
Happy win for everyone, I feel 🙂
Google is a possibility I didn't think of – it would love to have Nintendo managing its gaming side of things I'd wager.
I wasn't criticising Nintendo in the piece above – far from it, but I do think Nintendo is going to start to really struggle from this generation onwards (and it's already struggling with the 3DS). When it comes to consumer electronics most people are looking for convergeance – people don't want a phone for calls, an ereader for books, a Nintendo handheld for games and a tablet/ laptop for work on the go. They want it all together.
A corporation has the responsibility to go after as large a market as possible. Nintendo will struggle to do this, where Sony, Microsoft and Apple all enjoy the infrastructure and capabilities to offer people "everything in one box."
So I think from a purely competitive standpoint, Nintendo should look to be acquired. The end user probably won't see much change – there might be a new "app store" digital shop front, but otherwise Nintendo is a valuable brand, it will be kept as a separate subsidiary.
Happy win for everyone, I feel 🙂
Nintendo's weaknesses are, in a strange way, also their strengths. By relentlessly catering to the casual market until Sony and MS caught up to the idea, they have positioned themselves, essentially in between that demographic and those other companies.
If you want to market to casuals, you need to consider the 5k pound gorilla, Nintendo.
Likewise, if you want to make a platformer or an adventure game, you've got to compare it to Mario and Zelda.
So sure, they could make a lot more money being a subsidiary of Google or Apple, but, in the same respect, they might just lose the magic that got them to where they are today.
Nintendo games are the best games on Nintendo consoles. Without that simple truth to rely on, the whole company might black hole into itself in 10 years.
Nintendo's weaknesses are, in a strange way, also their strengths. By relentlessly catering to the casual market until Sony and MS caught up to the idea, they have positioned themselves, essentially in between that demographic and those other companies.
If you want to market to casuals, you need to consider the 5k pound gorilla, Nintendo.
Likewise, if you want to make a platformer or an adventure game, you've got to compare it to Mario and Zelda.
So sure, they could make a lot more money being a subsidiary of Google or Apple, but, in the same respect, they might just lose the magic that got them to where they are today.
Nintendo games are the best games on Nintendo consoles. Without that simple truth to rely on, the whole company might black hole into itself in 10 years.
Hi Anonymous,
The question is, would being a subsidiary of Google or Apple stifle Nintendo creativity? I don't tend to think so, I think whoever would acquire Nintendo would do so for the specific reason of building out its games offering.
In other words – it would let Nintendo go about its way, and profit. Nintendo would profit in being able to focus more energy on creating good products than trying to rush its own online/ services infrastructure up to the same standards of its competitors – it would simply have access to its parent company's infrastrucure.
I really don't see any losers in that scenario. I'd love to see Nintendo more involved in the broad industry again, I think it has a lot to say.
Hi Anonymous,
The question is, would being a subsidiary of Google or Apple stifle Nintendo creativity? I don't tend to think so, I think whoever would acquire Nintendo would do so for the specific reason of building out its games offering.
In other words – it would let Nintendo go about its way, and profit. Nintendo would profit in being able to focus more energy on creating good products than trying to rush its own online/ services infrastructure up to the same standards of its competitors – it would simply have access to its parent company's infrastrucure.
I really don't see any losers in that scenario. I'd love to see Nintendo more involved in the broad industry again, I think it has a lot to say.
The main problem I have is that, say Mario on an IPad or IPhone, those types of interface have no tactile feedback. Playing Sonic on my IPhone is… horrible.
So I think, strongly, that Nintendo designing the consoles then designing the games specifically for that console setup, works way better than plastering Mario onto the App Store.
Again, in the current incarnation of Apples devices, tactile feedback is a standout issue for gaming.
Now, none of this is to say they couldn't make an absurd amount of money, but, without Apple releasing a console with a control (which probably will never happen), or a Googletindo Entertainment System, Nintendo is stuck with needing to design their own consoles, so they can then design the games which sell the console and as such, sell the name Nintendo to stock holders…
Again, Super Mario World on a jailbroken IPad with an emulator is much harder to play than the SNES version, due to lack of tactile feedback.
I would say the monetary and creative gains would be huge, just that, because it would require Nintendo to restructure their business from the ground up, in nearly every department, I can not imagine it happening. Mario really needs a control to work right. Playing a game like say Galaxy or 64 is just impossible using a touch interface, and I just cannot see Google releasing a console.
Now, pure hypothetical, Mario on a Google HD/streaming/Netflix/blah blah blah etc. console would be a show stopper for Apple, MS, and Sony. The market would never be the same.
The main problem I have is that, say Mario on an IPad or IPhone, those types of interface have no tactile feedback. Playing Sonic on my IPhone is… horrible.
So I think, strongly, that Nintendo designing the consoles then designing the games specifically for that console setup, works way better than plastering Mario onto the App Store.
Again, in the current incarnation of Apples devices, tactile feedback is a standout issue for gaming.
Now, none of this is to say they couldn't make an absurd amount of money, but, without Apple releasing a console with a control (which probably will never happen), or a Googletindo Entertainment System, Nintendo is stuck with needing to design their own consoles, so they can then design the games which sell the console and as such, sell the name Nintendo to stock holders…
Again, Super Mario World on a jailbroken IPad with an emulator is much harder to play than the SNES version, due to lack of tactile feedback.
I would say the monetary and creative gains would be huge, just that, because it would require Nintendo to restructure their business from the ground up, in nearly every department, I can not imagine it happening. Mario really needs a control to work right. Playing a game like say Galaxy or 64 is just impossible using a touch interface, and I just cannot see Google releasing a console.
Now, pure hypothetical, Mario on a Google HD/streaming/Netflix/blah blah blah etc. console would be a show stopper for Apple, MS, and Sony. The market would never be the same.
Well, that's the way I like to think of it – your last paragraph. I believe that were Apple or Google to acquire Nintendo, it would be to acquire Nintendo's hardware development as well as the games and IP.
Apple and Google are pretty intelligent companies, so having a Nintendo console with the Apple App store integrated into it, or having a Nintendo console with Google datacentre support would be a very smart, and very easy way for both companies to gain a leg up on the competition in the gaming space – both in terms of hardware innovation, gaming quality and converged applications.
As I said in the piece – win win for everyone 🙂
Well, that's the way I like to think of it – your last paragraph. I believe that were Apple or Google to acquire Nintendo, it would be to acquire Nintendo's hardware development as well as the games and IP.
Apple and Google are pretty intelligent companies, so having a Nintendo console with the Apple App store integrated into it, or having a Nintendo console with Google datacentre support would be a very smart, and very easy way for both companies to gain a leg up on the competition in the gaming space – both in terms of hardware innovation, gaming quality and converged applications.
As I said in the piece – win win for everyone 🙂
Nintendo is a software company, and that alone keeps them relevant, and ahead of their rivals. You do know that Nintendo made money then both Sony, and Micrsoft last generation even though they sold the lease number of consoles. The only way Nintendo could benefit by having a PARTNER is having someone build the hardware for them or online system. Currently they do everything, but the online. When you allow nongaming companies into to gaming. You start getting overprice consoles with more features that are less about gaming and more about everything else. We already have those with the 360, and PS3. Let Nintendo keep their gaming simple gaming console. 80 million users can't be wrong.
Nintendo is a software company, and that alone keeps them relevant, and ahead of their rivals. You do know that Nintendo made money then both Sony, and Micrsoft last generation even though they sold the lease number of consoles. The only way Nintendo could benefit by having a PARTNER is having someone build the hardware for them or online system. Currently they do everything, but the online. When you allow nongaming companies into to gaming. You start getting overprice consoles with more features that are less about gaming and more about everything else. We already have those with the 360, and PS3. Let Nintendo keep their gaming simple gaming console. 80 million users can't be wrong.
Interesting article – and I'm not quite sure where I land on it. As one of the first to decry the rumored price points of the new system came out. Then again, a lot of people questioned if the Wii would be a big seller. Early on people wondered about touch screen ds. It's probably way too early in the game for Nintendo to really consider something like this since they could very well pull off another hit
I'm not entirely sure how I feel about this issue. To say that Nintendo isn't doing enough certainly isn't entirely wrong; to say that it is struggling with making games worth owning their systems for, however, would be an outright lie.
I guess what I'm trying to say is that, while I understand your points and can see some advantages to such a decision, I simply do not want something like that to happen. Nintendo is, in all actuality, the only real video game company that is still manufacturing hardware. To me, having that change would represent the grim end of an era.
I'm not entirely sure how I feel about this issue. To say that Nintendo isn't doing enough certainly isn't entirely wrong; to say that it is struggling with making games worth owning their systems for, however, would be an outright lie.
I guess what I'm trying to say is that, while I understand your points and can see some advantages to such a decision, I simply do not want something like that to happen. Nintendo is, in all actuality, the only real video game company that is still manufacturing hardware. To me, having that change would represent the grim end of an era.