- Nintendo’s stock (PINK:NTDOY) is at a 10-year low, with a market cap now at only $13B (less than 10% of Apple’s available cash)
- USD is at a 2-year high as compared to the Japanese Yen.
- Nintendo lacks product innovation, but creates great games and characters. Apple has no track record with successful games, but 300M+ people use Apple devices.
- AppleTV has no game functionality built-in, and the graphical simplicity of Nintendo games would likely allow them to run on existing AppleTV hardware. Wii Sports and other family games would be a perfect fit for the AppleTV.
- Nintendo designs great controllers, and Apple knows that gaming on touch screens will always have limitation. Imagine using a WiiMote with your Apple TV or iPhone?
- Apple’s ability to exclusively sell Nintendo games to the ~300M+ active iOS devices would have huge potential, especially if Apple was absorbing 100% of the app sales instead of their usual 30% royalty on game sales.
Disclosure: This should not be construed as financial advice in any way, shape or form. I currently own a position in AAPL.