Is Nintendo the Apple of Steve Jobs' Eye?

The Wall Street Journal ran an intriguing article about the brewing competition between Apple Inc. (NASDAQ:AAPL) and video game company Nintendo Co. (NTDOY.PK). It is the latest in a vein of stories about Apple's efforts to crack open the market for casual, mobile games via the iPhone and iPod Touch -- an initiative formally announced in September. So, might Apple have an eye for Nintendo?

As Dealscape noted in September, Apple has a history of supporting new product initiatives with acquisitions -- usually small ones. So far, however, Apple has strayed from that model, having made no purchases directly related to mobile games. The idea of Apple buying Nintendo is not a new one. As far back as 2006, the idea of Nintendo being in play was oft discussed in the blogosphere, and one rumored buyer was Apple. The logic behind an Apple purchase remains cogent today. The Nintendo Wii's unique motion-sensing interface -- not to mention its vast library of proprietary characters -- fits Steve Jobs' "Think Different" strategy. The catch of course is getting Jobs to think differently about acquisitions. Traditionally, Apple has executed small strategic purchases, nothing on the scale of Nintendo, which would likely exceed Nintendo's market cap of $36 billion.

As for Nintendo's reception of an Apple purchase, the Journal story offers a hint that an offer might be warmly received by Nintendo president Satoru Iwata, who according to the Journal is a huge Apple fan. - Matthew Wurtzel

Comments

[Gaucho420:]

What's NTDOY"s cash position? In the past, that has been a huge hurdle in any merger rumours.

Also, Nintendo in Japan is considered to be a national gem, similar to Ford, GE or whoever else you want in the US

While I do think it makes sense on many levels and certainly both companies have similar customer service orientations geared at high sastifaction of its customers, I beleive NTODY's large cash position (especially with an appreciating YEN) combined with NTDOY's treasured position in Japan, that it would be very, very hard for someone of Apple's size to pull it off.

The Japanese would see it as a foreign take-over of a very treasured company and I'm not so sure they would let it happen.

Protectionism sucks, but, Japan certainly wouldn't be the first one's to do it.

Nov 12 05:21 PM

[User 57810:]

Where in the Journal article is "a hint that an offer might be warmly received by Nintendo president Satoru Iwata"? All it says is that he is an Apple fan.
The Journal article also says that Iwata finds the Amazon Kindle interesting. Does this also mean that Amazon and Nintendo could merge?

Nov 12 07:06 PM

[RK:]

Apple is likelier to buy a gaming company than Nintendo, which is simply too large. Steve Jobs owned Pixar before. He is comfortable owning game creation. Many game companies (especially emerging) can be bought for under $1 billion, but most of these are not public.

Nov 12 08:19 PM

[FreeRange:]

Nonsense - what would Apple really gain in such a transaction that they don't already have? They have a wonderful handheld gaming device in the iPhone, along with a solid and growing portfolio of games, without taking on the headaches and risk of entering this completely different market of standalone gaming counsels, and one that is totally unrelated to the real Apple driver for its platform - the amazing OSX. And what is this about Apple "formally announced a gaming initiative in September"? There are already 10's of thousands of games on the iPhone, and they have been there since the launch of the iPhone app store well over a year ago.

Nov 12 08:25 PM

[Molehead:]

"....nothing on the scale of Nintendo, which would likely exceed Nintendo's market cap of $36 billion."

Gee, ya think?

Nov 12 09:56 PM

[Ted Cranmor...:]

Gee....you didn't even try to convince me. This is rational because of a blog and because Apple thinks different? Weak weak weak...how about addressing at least some of the obvious reasons why this doesn't make sense?

Nov 13 08:37 AM

[mollytjm:]

Apple certainly doesn't need the innovators on the staff at Nintendo. They have their own. I can't see it happening...Apple likes having a huge cash hoard...maybe it's a throwback to almost going bankrupt, but it feels good to know the loot is there...not just to Jobs, but to those of us who hold the stock.
and have you played ibowl on the iPhone? if you have, then you know Apple can already do what Nintendo does.

Nov 13 09:45 AM

[Fremont Rea...:]

Nice dreaming, this is not in the realm of possibilities. Apple's next move will be in automotive user interface. As Microsoft has partnered with Ford, Apple needs to partner with Toyota to develop a superior experience for the driver.

Nov 13 11:30 AM

[sleepy:]

Apple's galloping into the future and they're expected to hand over all the gold in their saddlebag for a dead moose. Dream on.

Nov 13 03:46 PM