Apple needs Nintendo to counter Microsoft |
Disclaimer: I own AAPL stock.
The Apple Insider probes the rumor (thanks Warner) that Apple could be making a move toward building a videogame presence:
A recent series of checks by Prudential analyst Jesse Tortora indicate that Apple Computer has hired video game designers and may have aspirations of entering the video game market in long-term.
I hope they don’t try to build their own videogame platform. I’ll predict here and now if that happens it will go badly for them. They don’t know anything about games, definitely not console gaming. Apple is a hardware company, not a software company. At least Microsoft was a software company with some noteworthy titles (Flight Simulator) so they had something to go on when they went with the Xbox. Does Apple have similar first party games on the Mac that I’m unaware of?
Apple should just buy Nintendo already and build a killer online store that interfaces with iTunes, although they’d need to change the name to the more generic Apple store. Nintendo has a solid, albeit family friendly, reputation with gamers. Mario and the Apple? That would be a formidable match for Microsoft who doesn’t have a portable gaming presence. Before anybody mentions the UMPC, don’t make me laugh out loud. Forget Waldo, where in the world is the UMPC? This could be something where the Zune steps up.
If Apple doesn’t make some kind of bold move like this and Sony fails with the PS3 (a possible scenario, don’t laugh), Microsoft could build a monopoly in the videogame market and the Xbox 360 will turn out to be exactly the trojan horse some have feared it would be in the living room. Apple has an opportunity here and it’s encouraging if these rumors are true that they are thinking videogames in the future. That is the future.
While we’re talking dream acquisitions, if Microsoft or Apple could buy Sirius satellite radio, that would be another good acquisition for either of them. The people who say satellite radio is a bust must not have tried it lately. I’ve been thoroughly enjoying our Sirius subscription for the past couple months and I still haven’t gotten through all the channels worth of content available.
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Interesting thought. I kind of cringe at the idea of apple in the gaming business. But who knows! Critics thought it was a mistake for apple to get into the consumer electronic market a la iPod.
A nitpicky comment:
“Apple is a hardware company, not a software company”. They make the bulk of their money from hardware, but they are definitely a software company. Erm, OSX? iLife? FinalCut Pro?
Comment by Vlad — December 6, 2006 @ 12:17 am PST
[…] When Steve Jobs announced his iTV strategy last fall, for many of us it sounded pretty weak. You have to pay $300 to buy a device that then downloads movies that you still have to pay for and then to top it all off you only get “near DVD quality.”? While I understand why the Apple fans would like the product, it’s hard for me to imagine it having a more widespread appeal without DVR functionality or a Nintendo attached. […]
Pingback by Davis Freeberg’s Digital Connection - Will TiVo Be Apple’s Little Secret At This Year’s Macworld? — December 6, 2006 @ 4:04 am PST
I remember reading somewhere that the convoluted setup of a lot of Japanese companies and their holdings made it nigh on impossible for Japanese companies to be bought. Unfortunately, I forget the Japanese word for it.
I’d still like to see Nintendo owned by Apple (or partnering at the least).
Comment by Ross — December 6, 2006 @ 4:10 am PST
Hi Vlad - thank you for taking time to comment. I was being a bit facetious with that comment. I realize Apple makes software, but as you pointed out the bulk of their money comes from hardware (iPod in particular). And they certainly aren’t known for their game software, which is what concerns me if they are seriously contemplating starting a new initiative.
Comment by TDavid — December 6, 2006 @ 5:17 am PST
Ross - I didn’t address whether or not Nintendo actually could be bought, and that’s certainly a valid perspective, but both companies could really, really use each other. In the portable gaming market where both Microsoft and Sony are lagging, Apple could have instant traction. They know what it’s like being #1 with the iPod so this would be an advantangeous position in a different sector and could tiein to an iPod with games someday that doesn’t suck (games on the iPod haven’t been that exciting to date). I really don’t see Apple going anywhere any time soon building their own games division, if that’s even what they are up to.
Comment by TDavid — December 6, 2006 @ 5:22 am PST
[…] Nintendo has hit a homerun with the Wii captivating gamers of all ages. USA Today is reporting that Nintendo profits are up 77%. They already own the portable gamer market with their slew of Gameboys which prompted me to write last year that Apple and Nintendo should hook up. […]
Pingback by Mii Flash generator » Make You Go Hmm — April 26, 2007 @ 9:23 am PST