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Cisco Eyeing Tivo/Nintendo for Buyout?

We've already covered Cisco's push into the home electronics market, but CNet is reporting that they may be planning even bigger purchases to come. The article speculates that Cisco may be planning on purchasing Tivo or Nintendo to add to their growing portfolio of companies. From the article: " Another possible acquisition candidate for Cisco is Nintendo, the No. 3 game console maker in the U.S. A stretch? Not really. Microsoft, which is emerging as a key competitor to Cisco in the home entertainment market, is already in this market with the Xbox 360. Gaming has already proved to be a strong application for broadband, so it makes sense that Cisco would want to own a game device to help drive more traffic on its network. With its popular GameBoy product, Nintendo would also provide Cisco an entree into the mobile-handheld market." Some commentary at GameDailyBiz, which finds it unlikely that Nintendo would sell to Cisco.

39 of 216 comments (clear)

  1. Nintendo stands strong? by kefkahax · · Score: 2, Interesting

    Didn't Microsoft try to buyout Nintendo a while ago and get spit on?

    1. Re:Nintendo stands strong? by Chris+Burke · · Score: 4, Funny

      The story goes that the Nintendo President told Ballmer to "suck my tiny yellow balls". Nintendo says that this is a hoax, the interview with Wired where this story was allegedly told never happened, and they seem to have a good enough sense of humor about it to make me think 1) it really is a hoax and 2) if MS tried to buy Nintendo (assuming they haven't already) the response would practically if not literally be the same.

      --

      The enemies of Democracy are
    2. Re:Nintendo stands strong? by Nintendork · · Score: 4, Informative

      No, here's what happened. Someone informally asked Bill Gates asked if he would buy Nintendo, given the opportunity. He said he would. Nintendo got a little upset when the press went crazy with rumors. Welcome to the video game industry where for every true rumor, there's a hundred false ones. Regardless, I do find it amazing how opinion can influence memory.

    3. Re:Nintendo stands strong? by antifoidulus · · Score: 4, Interesting

      Nintendo will never sell outright I would bet, and I doubt that the Japanese business community would allow for a "hostile takeover" of a Japanese company. I was reading an article today that said in post-war Japan there has never been a successful hostile takeover. And with the whole Livedoor fiasco, I wouldn't bet on there being one any time soon.

    4. Re:Nintendo stands strong? by Anonymous Coward · · Score: 2, Informative

      Hmm... Except that Sega was bought out by Sammy Corporation, a Japanese company: http://www.sammy.co.jp/english/corporate/company.h tml

  2. Great... by Lectoid · · Score: 5, Funny

    Am going to have to get another CCNA (Certified Cicso Nintendo Administrator) certification.

    --
    Is it just me, or do you hate it when people say "Is it just me..."?
    1. Re:Great... by TripMaster+Monkey · · Score: 3, Funny


      Good luck...I hear this year's exam has a lot more flying turtles than the previous one.

      --
      ____

      ~ |rip/\/\aster /\/\onkey

    2. Re:Great... by __aaclcg7560 · · Score: 2, Interesting

      The requirement for that certification is to unpack the Nintendo and hook it up to the TV.

      When I was working at Atari, every job applicant was asked if they knew the basics of hooking up a game console to the TV, and everyone said "yes" to get hired. (The same question was asked about working 80 hours a week, but that was a different story.) About half of them couldn't tell the difference between a coaxial cable and their rear end, much less where each one goes. I kept telling management that they should job applicants if they can program a VCR clock. That would've eliminated 90% of the applicant pool.

    3. Re:Great... by AKAImBatman · · Score: 2, Funny

      Good point. Don't forget about the spikey-shelled turtles, though. They are a serious pain in the posterior. Especially when some yahoo drives by in a cloud and drops them on your head. I mean, who the hell gives a drivers license to a guy in a cloud?!

  3. TiVo not for Sale until after the Trial by Anonymous Coward · · Score: 3, Informative

    TiVo is sueing Dish over "time warp" patent. Smith Barney thinks TiVo has a 70-90% chance of winning the case. Why would TiVo enter any equity agreement when it is likely to be worth much more soon after the trial ( March 2006 )?

  4. Re:Cisco? by Anonymous+Rockstar · · Score: 5, Funny

    you know... wrote the thong song.

    --

  5. Changes to TiVo if bought by Cisco by raitchison · · Score: 4, Insightful

    So if Cisco were to buy TiVo what would be the result? Here are some possibilities:
    1. Mandatory Jazz music soundtrack while in Menus and while fast forwarding.
    2. Higher cost (everything is worth more with a Cisco label on it).
    3. Different TiVo features will now be ala-carte, pay extra for HMF (again), pay extra for IR Blaster funcionality.
    4. The only networking configurations that will be supported is if EVERY piece networking & voice component in your house is a Cisco product, your'e on your own if you have a D-Link or SMC broadband router or a Motorla set top box.

  6. Re:Cisco to buy Nintendo? by AKAImBatman · · Score: 5, Insightful

    Amusing, but the real question is: Who's writing this CRAP?

    Many a-company has tried to purchase Nintendo. The answer has always been "No". While Nintendo may be third in the American console market, this soundly ignores the presence of the Nintendo DS as well as Nintendo's strength in Japan. Not to mention that Nintendo is the only company that is profitable as just a game company. The other players are running on ultra-tight margins (Microsoft loses money) while Nintendo sits back and enjoys a stogie.

    This has got to be some of the worst rumor-mill crud that Slashdot has ever reported. I'd complain about CNet reporting it, but we lost them a LONG time ago.

  7. New name by rmsmith · · Score: 4, Funny

    Cistendo? Nintenco? Nincisco? Nisco? Nintencis?

  8. Re:No way by Anonymous Coward · · Score: 2, Informative

    "There's some denial about the interview after the fact now"

    It's a known outright fabrication. The only source for it was a supposed issue of Wired that doesn't contain it.

  9. Network? by Call+Me+Black+Cloud · · Score: 5, Insightful

    Cisco would want to own a game device to help drive more traffic on its network.

    What network is that? I thought they made hardware. Wouldn't the traffic be carried by the DSL or cable providers?

    1. Re:Network? by sucker_muts · · Score: 3, Insightful

      Wouldn't the traffic be carried by the DSL or cable providers?

      Certainly.

      And when they start to get much more traffic (I presume online gaming with those newest games does need some bandwith), they definately need to start updating their switches/routers. Which Cisco sells.

      A no-brainer actually...

      --
      Dependency hell? => /bin/there/done/that
  10. I truly hope not by rAiNsT0rm · · Score: 5, Insightful

    Seriously, I could not imagine a worse scenario. Nintendo is the only game company left who places fun, gameplay, and design over advertising, hype, and corporate greed. The gaming industry is dying slowly and turning into a mini-hollywood and the pervasiveness of ad's in games and lack of innovation in favor of sequels and making the biggest grab for money and power does nothing to further gaming.

    Nintendo stays true to its roots, and wavers for no one or no money. They have a quirky business set-up but it works, to turn that into a carbon copy American corporation would ruin everything that makes Nintendo Nintendo. I would be deeply saddened to hear news of Cisco purchasing Nintendo, and I can only hope that the Revolution is a great success and sale of the company would be out of the question. That would be the darkest day in gaming of all time.

    --
    http://teasphere.wordpress.com - A little spot of tea
  11. Cart driving the horse by null+etc. · · Score: 5, Funny
    Gaming has already proved to be a strong application for broadband, so it makes sense that Cisco would want to own a game device to help drive more traffic on its network.

    Uhm, yeah. That makes just about as much sense as an asphalt producer buying Ford so that its cars would drive up the demand for pavement.

  12. Wont happen by Bethor · · Score: 5, Interesting

    As someone who has been working in Japan for several years, in the game industry, I cant begin to explain how ridiculous this sounds.

    Nintendo is a 107 year old company. It has been lead by the same family for generations, and their mployees are extremely proud. They were there before video games existed, and they most likely will be there long after video games are gone.

    I am not sure if its a cultural thing, but the assumption that everything is for sale is quite irritating.

    1. Re:Wont happen by mausmalone · · Score: 4, Informative
      Nintendo is a 107 year old company...
      Minor correction. Nintendo is 117 years old. I know it was probably just a math fluke, but here's some trivia for others: Nintendo was founded in 1889 and manufactured Hanafuda trading cards. Replicas of these cards are on display at the Nintendo World Store in NYC. The GameBoy was released in 1989 as part of Nintendo's 100th anniversary celebration. For more info check out the Wikipedia entry.
      --
      -=-=-=-=-=
      I'd rather be flamed than ignored.
  13. Re:Too Big? by bookemdano63 · · Score: 5, Informative

    Market Capitalization-
    Cisco= $114 billion- http://money.cnn.com/quote/snapshot/snapshot.html? symb=CSCO

    Nintendo= $18.5 billion- http://www.gamasutra.com/php-bin/news_index.php?st ory=7930

    I don't think Nintendo is going to buy Cisco.

  14. Please no, not nintendo! by monopole · · Score: 2, Insightful

    It would be just like Palm and 3COM, elagant and beatuful designs crushed under a layers and layers of clueless management and indecision strangling innovation until the design is irrelavant.

    Why don't they buy SEGA instead. We can finally get ehternet adaptors for our dreamcasts!

  15. Driving network usage? by peterdaly · · Score: 3, Interesting

    Cisco is all about the network.

    Theory 1:
    I bet small changes could be made to Tivo to make it much more of a video on demand box. These changes could be done in such a way that the Tivo is much more dependant on the network for it's content. High network utilization is good for Cisco.

    Thoery 2:
    They own Scientific Atlanta which (last I knew) is one of the major vendors of cable set-top boxes. Including Tivo in a set-top box would be good for sales I would think, even if it's just because Tivo has a good "brand."

    Theory 3: (Theory 1 + Theory 2) = Theory 3.

    -Pete

  16. Re:Nintendo of America by mausmalone · · Score: 4, Informative
    If Nintendo does sell to another company ...
    Just stop right there, really. Nintendo has been surrounded by rumors of a buyout ever since the NES was released. All of the rumors are crap, and Nintendo themselves have countless time reaffirmed that they'd go out of business before they sell the company.

    Part of it is the pride they have in being an independent company since 1889. In Nintendo's eyes, Cisco is a fucking infant.
    --
    -=-=-=-=-=
    I'd rather be flamed than ignored.
  17. Better yet, buy them both. by Kesch · · Score: 3, Funny

    I vote that someone buy both TiVo and Nintendo. I don't care that Microsoft is pushing for the X-Box an all-in-one media center. The holy grail of media centers will be my new NinTeVo Revolution Series 3.

    I'm looking forward to the Japanese imports such as "Doodle Doodle Doodle" where you have to draw mustaches as fast as you can on the incoming TV feed.

    --
    If this signature is witty enough, maybe somebody will like me.
  18. Re:Nintendo of America by damsa · · Score: 2, Informative

    Yeah but selling NOA is not selling the entire company. NOA technically is a seperate entity. Not saying they will sell it. But if they do, that part is what they will sell.

  19. Re:Cisco is in the entertainment market? by AlterTick · · Score: 3, Informative
    Maybe I'm out of touch, but what does Cisco have already in the home entertainment market?

    Just off the top of my head, I know they own Scientific Atlanta, which is pretty much the big gun of set-top CATV boxes. They've lost a little to Motorola in the digital cable area, but they're still a major player.

    --
    Conclusion: the Empire squashes the Federation like a bug. Accept it.
  20. This makes no sense... by Xepherys2 · · Score: 2, Insightful

    First of all, how is Cisco competing with anyone in the home entertainment market? Because of Sci-Atlanta and Linksys? Yes, you can play games on the internet via a Linksys router, and watch cable TV via a cable box. These do not make you a player in the home entertainment industry. In fact, Sci-At has been making cable boxes for DECADES, and I never search out their brand over someone elses. Does anyone even CARE who makes a cable box?

    As for the purchase of Nintendo... I say fat chance. Aside from the fact that Nintendo is no small company (in Japan, they are still QUITE large) with a LOT of IP to purchase in the deal, I believe the cultural background of Nintendo would prevent them from selling to such a company... or really selling at all unless they were in dire straights.

    Honestly, the whole article doesn't really seem to have much base in reality. Can anyone enlighten me if I missed out on something really big?

  21. Buyout rumors are fun! by saboola · · Score: 3, Funny

    Disney/Pixar to buy out Nintendo so Apple can aquire a games console platform to move into the living room. Taco Bell to buy out Depends diapers for adults because the two seem to go hand in hand after a stuffed burrito. See, I can do it too, it's a lot of fun.

  22. Besides... Why would... by cnelzie · · Score: 5, Funny

    Cisco want a 100+ year old playing card company anyway?

    --
    If you ignore the other uses of a tool, does that make the tool less useful, or you less useful?
  23. The Nintendo Funtapulous Carnivalatron from 1901 by Quiet_Desperation · · Score: 4, Funny
    I still have one of their steam driven difference consoles.

    The cartridges were *big*. :-o

  24. Re:weird? by Radres · · Score: 3, Funny

    NINTENDISCO!!!

  25. Re:Cisco to buy Nintendo? by xenocide2 · · Score: 3, Interesting

    Well, certainly Nintendo would owe it to shareholders to consider any offers. Whether the Japanese investing market is given these considerations is another matter. I suspect the management of Japanese companies has considerably more power than in US chartered corporations. The fact that the DS is doing well and that Nintendo is turning a profit is only a sign that the company is valuable, not that it is priceless.

    Even if Nintendo was in the number one spot, they'd still be the primary purchasing target, for obvious reasons. Sony and MS are simply to big to purchase. Infinium is simply 90 percent hype, 10 percent delivery. However, the company isn't a good matchup for Nintendo. Cisco would have to substantially be involved with the design of whatever next hardware comes out to make anything positive happen for either side. I don't know the Cisco culture, but I'd imagine there'd be some communication problems if they tried it.

    I wouldn't be surprised however if Cisco purchased Alienware.

    --
    I Browse at +4 Flamebait

    Open Source Sysadmin

  26. Oooh! Oooh! More buying options! by ReaveT · · Score: 3, Funny

    Cisco should buy Nabisco too! Then they could call the company: Ninabicisco!

    After that, it's only a matter of buying the rights to John Travolta's movies, and they could then be a true media company:

    Ninabicidisco. Home entertainment, home networking, home food, and home music. A true media conglomerate.

  27. Re:Totally different markets by leland242 · · Score: 3, Informative

    Uh, no.

    Nintendo has reported a whopping 1 quarter in the last, like, 75 years where they didn't show a profit.

    They are the market leader in handheld consoles...and have been for about 20 years. They have beaten Sega, Atari, and Sony at this game. Not to mention numerous others like the n-gage and wonderswan.

    Unlike the competition, they only sell thier consoles at a profit. Sony and MS take a hit - either initially or during the entire lifepan of the system.

    They aren't going anywhere.

  28. Re:Cisco to buy Nintendo? by Jozer99 · · Score: 4, Insightful

    If I said I was going to purchase Nintendo, would you write a slashdot story about me? I didn't think so, because I couldn't buy Nintendo. Neither could Cisco.

  29. Re:weird? by BakaHoushi · · Score: 3, Funny

    Thanks a lot. Now I have the image of a sweaty Italian plumber dressed like John Travolta in Saturday Night Fever.

    I shan't be sleeping tonight...

  30. Real world example by bstadil · · Score: 2, Interesting
    As dumb as it sound but something like this has actually happened. Michelin the French tire company realized that they would sell more tires if people drove more. So what did they do? They made a tour guide called Guide Michelin.

    It had information that the driver needed but its reason d'etre (pretentious moi!) was the longer scenic routes that were offered as an alternative. While we are at it the early US car companies financed roads as well.

    --
    Help fight continental drift.