

Why Apple Should Not Buy Nintendo - oddevan
http://www.oddevan.com/2013/why-apple-should-not-buy-nintendo.html

======
ctdonath
What's missing is any explanation of why the author considers the precursor
question of "Why _would_ Apple even _think_ of buying Nintendo?" What prompted
the article in the first place? Sure, the games are good, but there's enough
games for iOS & OS X out there; remember, Apple only creates software as a
reason to persuade people to buy more hardware, and there's certainly enough
compatible games out there to make that happen.

Next, it keeps comparing the non-sequitur of Apple buying Nintendo with the
absolutely unique Apple purchase of NeXT, which was unlike any conceivable
purchase because it amounted to Jobs taking a sabbatical to, having
experienced creating Apple, see what he could do with a complete ground-up
reboot of the process, and then folding that work back into Apple as a means
to better advance the company without the consternation of wrenching the
original company in that direction before figuring out where the target was.
It amounted to branching the vision, doing independent work, then merging that
branch back into the mainline.

Apple should not buy Maker's Mark either. Purchasing a flash storage
fabrication facility was a much better decision.

~~~
drawkbox
The only huge benefit to Apple would be exclusive Nintendo games. Especially
when they launch the Apple TV, if they alone have Mario on that first it would
be massive. I don't think Apple would be interested in a merger, they
essentially recreated their handheld business the right way. They would only
want the exclusive games and Nintendo still makes some of the best games that
are perfect for the casual market. i.e. Apple TV, tablets, pods, minis, the
new consoles and handhelds.

Apple iOS 7 also allows external gamepads to this it an opportunity for
nintendo as well to put out some nice gamepads and maybe other interesting
motion controls.

Apple also recently bought PrimeSense and the Apple TV console is still on the
way. It could be a perfect storm if that launches with Mario and Zelda.

~~~
increment_i
The Mario and Zelda franchises alone would probably smash App Store download
records. The time would seem to be ripe too, as the value of this kind of
nostalgia is probably at its peak point.

It would be interesting, thats for sure.

~~~
jonnathanson
Why does Apple need to own the company behind that IP in order to win? If
Nintendo releases the games for iOS, Apple gets a cut anyhow.

I could possibly see the argument for locking them up as an iOS exclusive --
but Apple doesn't need to buy the cow, so to speak, to get that milk.

~~~
chc
> _Why does Apple need to own the company behind that IP in order to win? If
> Nintendo releases the games for iOS, Apple gets a cut anyhow._

That seems exceedingly unlikely without Apple doing something equivalent to a
takeover. Nintendo does not release its games outside of its platforms.
Nintendo wants the 3DS to be your mobile gaming platform, not iOS.

~~~
jonnathanson
A lot of the theory behind "Apple should buy Nintendo" is premised on the idea
that Nintendo would release its games on iOS -- something it is under a lot of
pressure to do, regardless of whether Apple were ever to buy it.

Nintendo, being a hardware company like Apple, would much rather you buy its
games on 3DS (or whatever future system) than on iOS devices. But it may not
have that choice indefinitely. Its hardware sales (Wii U and 3DS) have been in
freefall. Its software is the one bright spot in its portfolio right now. Its
overall financial health is tenuous.

Regardless, I don't really have a position on whether or not Nintendo should
make iOS games. I'm addressing the "Should Apple buy Nintendo?" argument, to
which my position is "Why?" Absent some sort of fire-sale opportunity to scoop
up Nintendo if/when it approaches collapse, or to buy it on the cheap in a
defensive move against Android, I don't see the pressing need.

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rubyn00bie
I think the opposite of this article and would be happy to argue it... First,
I would like to point out the failure that was the nintendo bandai experiment
was from an Apple that was failing at everything. Their stock price was in the
gutter, the outlook was bleak, and that was a shot in the dark. This was not
the Apple that would make OS X, iPod, iOS, and iPhone.

I think assuming that the lack luster online services from both companies is
the reason to avoid the merger is pretty absurd. Apple knows how to do online
servies iTunes, AppStore, iCloud all serve massive audiences. And are just
that, connected services.

Microsoft is also not a threat, their empire is slowly dwindling and I'm very
literally, willing to bet, that it's going to get the nail in it's coffin with
SteamOS pounding the head of it. Hardcore gamer's are what drive Microsofts
platforms currently because your average consumer is voting with their dollars
for Android and iOS (not Desktops/Laptops and not Microsoft products). SteamOS
is the chance to remove one of the biggest arguments for Windows, that has
existed my entire life, "it plays games, and your Mac or Linux box can't!" ...
if a Battlefield or Call of Duty is releaed for the SteamBox I think it's game
over (BOOM, PUN!).

The Xbox One falls flat for that market, as well-- out the door the PS4 is
just better. Sony knows this is it's chance to rally, and that Microsoft is
weak, and I think they've taken the opportunity to it's max by making a
console that's just dollar for dollar unmistakbly better.

For one, Apple and Nintendo do one brilliant thing well, and it's the one
thing that matters, they enchant their users. They provide an almost whimsical
experience with their products that sets them far from the rest of the pack.
They both drive innovation.

If Apple and Nintendo were to merge, we would finally see real first party
titles showing up on the Mac, iOS, and most presumably the AppleTV (Wii-U tech
would do wonders here since their airplay gaming sucks [latency]). Apple would
begin to have a foothold in the one industry it has typically done so poorly
in-- gaming.

Culturally, they both strive for excellence. It's better to not release
something at all than release it, if it's not perfect (grain of salt with that
one, but most will follow me on it). Apple knows how to make great software,
and hardware, nintendo knows how to translate these into story telling-- to
enhance and enchat the viewer into a stouper not well known on other
platforms.

Finally, in regards to "what customers actually want" I'd like to point out
that one very famous person said quite the contrary. Customers don't know what
they want, it's their job to tell them. Because their customers are not the
innovators, they're the consumers. I forget the guy's name, he ran some big
fruit company or something...

[edit] For those who are like, WTF prompted this article, I think this is just
a nerd fantasy that makes its rounds every few months (it's one of mine!).

~~~
oddevan
Thanks for the feedback. I think the point I was trying to make at the end
(with mixed results, obviously) was that both companies are still learning
about online services. Apple would be the leader in this case if only because
their store structure (same account across all stores, redownloads to same
account whenever legal) is exactly where Nintendo is trying to get to. My
concern is that Apple's still not an expert, and it's hard to learn and move
out of a comfort zone when there's a merger in progress.

I am also excited to see what happens with SteamOS and SteamBox; if it does
what Valve wants it to it will be a real... (sigh) game changer.

Again, thanks for reading!

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drawkbox
Agreed, a merger is probably a bad idea, but if Nintendo was to exclusive all
Nintendo games to Apple and coincide with the Apple TV apps/game SDK/console
they would sell a ton more on Apple devices.

They are already exclusive and this wouldn't change their business model much
but it might mean less hardware from Nintendo, they haven't really been the
best at hardware even though I loved the original NES that was better
hardware.

I am positive developers would love this because developing for the Wii and
Nintendo hardware nowadays means developing for a very small target, weak
hardware and limits what can be done. Makes modern day ports a nightmare and
we live in a multi-platform world for most games, starting with mobile (the
new handheld) now.

Nintendo has made the best of that but kids all play tablets now. If they want
to reach the kids they'll have to do something like this soon so they don't
skip a large part of this generation. They were everywhere in the 90s, and a
spike again with the Wii before mobile but their hardware just isn't as
attractive now with all purpose devices like tablets and minis.

They are rolling on some nostalgia fumes still, but the Wii U might be a sign
of things to come. Of course you could also say they didn't differentiate the
Wii U enough, most people don't even know it is a new device, they think it is
an add-on to the Wii. Horrible branding. They should have called it the
Nintendo Revolution as is brought in their first tablet like device. (Nintendo
Revolution was the code name for Wii during early dev).

~~~
slantyyz
>> they would sell a ton more on Apple devices.

But would they be more profitable? Pokemon X/Y's market price in retail ~$35
right now. Pokemon X/Y sold 4M units over the course of their first weekend
[1]. And that's not counting console sales related to X/Y.

I imagine 2DS holiday sales are going be pretty healthy because of Pokemon X/Y
by parents who bought into the FUD about the 3D in the 3DSes turning their
kids' brains into mush.

My niece, who has access to both Android and iOS tablets is getting a 3DS just
for Animal Crossing. If the software is compelling -- and one can make the
argument that it is -- people will continue to support Nintendo.

1: [http://www.polygon.com/2013/10/15/4840738/pokemon-x-y-
sales](http://www.polygon.com/2013/10/15/4840738/pokemon-x-y-sales)

~~~
drawkbox
I do hope more kids get Nintendos and the handheld stays strong but also I
hope it doesn't relegate them to the back and fade away. I got all Nintendo's
through Wii for my son but they end up on the computer or tablets for other
things.

They might be immensely more profitable and they would be good to remake
mobile games a little more fun. Super Smash Brothers would sell alot and with
very smart in-apps or f2p like Halfbrick style would probably dwarf Angry
Birds, many of Nintendo titles would. They are just not reaching tons of fans
and sales.

Nintendo sells 4M units because that is a small set of good games on a small
market like console 10-20million users (across all three bigs it is only 150
million). Mobile is billions of users, pretty much everyone would buy Nintendo
games on mobile, they could also change premium pricing and sell easily at
5-10-15 even 20 maybe. In-apps would keep them alive in profitability and they
could change mobile gaming in big ways even down to controller accessories.

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maaku
Is Apple even considering buying Nintendo? Did I miss something?

~~~
willimholte
It's a commonly suggested thought from people that like both companies. In a
happy-go-lucky sort of way it is a fun thought experiment, but I've never
heard anyone seriously suggest it.

~~~
oddevan
That's it right there. :)

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faragon
Why not? Both Apple and Nintendo have shown puritanism and obsession with
content control.

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aeberbach
What? This is an insane idea to begin with. It's right up there with Compaq
buying Digital and HP buying Compaq. Companies with too much money and no clue
do things like this. Apple has too much money but absolutely no lack of
critical thinkers who would realise this is a dumb idea.

Right now Apple makes platforms. Developers develop for those platforms and
make lots of money. No shortage of good games on iOS, in case you haven't
looked. And while I haven't seen anyone playing a Nintendo portable in a year
or so, I see Android/iOS games everywhere. Nintendo haven't even got a worthy
console in this generation. What does Nintendo even have that Apple would
want?

Should Apple want Nintendo's IP (characters etc. - and I don't think that is
Apple's style at all, just the only vaguely valuable thing there) they just
have to wait a bit longer. If they did want Nintendo, the only risk to waiting
would be that some other company would snap them up first. Nintendo certainly
isn't going to worth _more_ in a year.

~~~
endemic
I just bought a 3DS XL.

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sorahn
I just want nintendo to release their grasp on Pokémon and release that for
iOS/Android. Touch screens are IMO the best input device for JRPGs (Pokémon,
Final Fantasy, etc.) or Turn-based Strategy games (XCom, Disgea, FFT, etc.)

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Apocryphon
The two companies seem to have certain similarities: A willingness to think
different in pursuit of their own hardware standards and form factors
(remember how the Gamecube used mini-discs and had a handle for carrying?),
huge success from pursuing the Blue Ocean Strategy, the capability to inspire
consumer cults (possibly because they are seen as somewhat "purer" than their
competitors), and even similar aesthetics (clean off-white plastic-porcelain
hardware, the lower-case letter 'i', very family-friendly content, minimalist
form over high-performance function).

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tadfisher
It's worth noting that Apple has a sordid history with video game hardware:
[http://en.wikipedia.org/wiki/Apple_Pippin](http://en.wikipedia.org/wiki/Apple_Pippin)

~~~
oddevan
It's noted in the article. :)

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huu
For anyone wondering why the author felt compelled to write this article,
there is no answer.

This should hopefully save some Googling. There is no official talk of an
Apple purchase of Nintendo.

------
programminggeek
One minor, but important point. Apple has already made 2 very successful "game
consoles" \- the iPhone/iPod Touch and the iPad.

Pretty much everything a game console has going for it Apple has -
standardized hardware and software, reasonably powerful hardware, and a large
audience hungry to play games. That is in fact why a lot of large companies
make mobile games - because iOS and Android have a lot in common with game
consoles. Heck, with Airplay + controllers or devices like OUYA, iOS and
Android are nearly indistinguishable from other game platforms.

I am a gamer so I understand how gamers might bristle at the notion of this,
but Neil Young, former exec at EA and founder of ngmoco started ngmoco based
on the premise that the iPhone was a game console and he went to build a very
successful game company doing it.

Apple could very much make the Apple TV into a game console if they wanted,
but I'm not so much sure that the product designers care that much about games
as part of the core product concept.

~~~
oddevan
I agree; iOS devices are AMAZING game consoles. The problem I'm worried about
is the one mentioned in [Ben Thompson's article][1]: that easily portable
casual games don't differentiate platforms. If you can get Fruit Ninja on iOS,
Android, and Windows Phone, then it's one less reason for you to choose iOS
over any other platform.

Game consoles have always had their big-ticket exclusives; I'm concerned that
iOS doesn't have enough.

[1]: [http://stratechery.com/2013/casual-gaming-is-a-
sustainable-b...](http://stratechery.com/2013/casual-gaming-is-a-sustainable-
business-but-not-a-platform-differentiator/)

