Why Apple should buy Nintendo

It’s no secret that Apple is cash rich, currently sitting on 40 billion in reserves and in the past few months they’ve been publicly stating that they have some desire to begin spending it.  Well I have an idea: buy Nintendo (or a large stake in the company).  Why?  Well read on. 

The race to control your TV has been going on for years, all the major players of the computer industry have some product or service designed to web enable your television.  In many ways he who controls the tv set will become the next cable provider.  Clearly a lot of money is at stake, what’s been lacking is a simple mainstream system that your grandma would understand and be able to use.  A web enabled TV would allow distributors to sell movies or other content straight off the internet to be watch somewhere other than behind your desk. 

This brings me to Apple.  A few years ago Apple released their foray into the living room with AppleTV.  A small little box that connects the web to your TV.  As with all things Apple the interface is simple, easy to use.  Users connect with iTunes and are able to rent or buy digital versions of top shows and movies.  The more units in the marketplace, the more content Apple could make money with.  But the problem?  Well they don’t sell.   People cannot be convinced to pay several hundred dollars for a device that really from a layman’s point of view an expensive indulgence that on it’s own provides little value.  Are you going to convince someone with a home computer to pay good money so they can watch YouTube on their TV?  Nope.  Apple’s little box is also limited in what content they can play.  Due to patent restrictions, desire for format control, etc. Apple really only plays Apple format material preventing you from watching your video collection that may be encoded in other file types.

The Sollution. Buy Nintendo, and package AppleTV as part of the Wii console.  The value is in the gaming device – popular with women, families and the less geeky crowd.  The AppleTV becomes an additional feature as opposed to the reason for purchase.  Or alternatively those who are seeking out an AppleTV will have an additional reason to purchase the device.

Wii ownership would allow Apple to exploit it’s built in audience base.  The new device would be backwards compatible allowing for easy upgrade.   You suddenly take a device that in the eyes of the mainstream consumer is complex, unwanted and expensive into a must have device.  Existing iPhone/iPod device users will also welcome the device and it’s easy integration with their existing products.

In addition to the Wii, Nintendo has many patents and hand held gaming devices that could further expand with reach.  Porting games over to the iPad and iPhone platform. 

Could be a smart move for Apple.