Investors react to Gates’ off-the-cuff Nintendo dream

Foolhardy speculators misinterpret spurious merger reports.

Posted by Staff
Investors react to Gates’ off-the-cuff Nintendo dream
Following the widespread reporting of Bill Gates’ comment that he would consider buying Nintendo if it was for sale, Nintendo shares have leapt up in value overnight. It seems ludicrous that serious investors have actually reacted to this news as if it was a genuine implication of a merger, but with Nintendo shares up 3.8% to 12,580 Yen, some speculators are clearly putting faith in this rather contrived report. Either that, or the merest whisper of admiration from a man of Gates' stature is sufficient to immediately boost the value of a company's shares.

At this point it would be worth re-iterating the original context of Gates’ relatively flippant remark. A German journalist asked him informally if he would consider buying Nintendo, Gates said yes, in theory. This really doesn’t mean anything of serious consequence. Any sensible capitalist would consider buying Nintendo (or any other profitable company) if it was up for sale at an affordable price. If SPOnG had the opportunity to buy Nintendo, and the price was right, then we surely would (rustles in pocket for a spare tenner)... but it doesn’t mean that’s ever going to happen!

Microsoft has refused to comment on the story, probably because it has no problem with these kinds of rumours proliferating. They all serve to emphasise MS’s intimidating financial prowess and aggressive business practise, which in turn reassures investors and shareholders. However, Nintendo spokesperson Yashuhiro Minagawa has explicitly negated the buyout chatter, and has termed the original WirtschaftsWoche article simply as “unreliable”. Nintendo is not for sale.

Comments

Ditto 5 Aug 2004 11:00
1/8
As previously mentioned, I don't think a buyout by MS would be particularly good for Nintendo investors.

Nintendo's shares jump and fall in the 3% margin regularly, so this change really isn't anything special.
ryohazuki-san 5 Aug 2004 11:06
2/8
Ahh please, dis da bullish story ive ever read on ere, infact its so pathetic dat i wud love to slap Bill Gates round da face wiv a X-block if i had da chance. True dat he does posess "financial prowess and aggressive business practise" but dat doesnt mean to say dat u can go round buyin a company dat would look so shyte under Microsoft rule. Personaly, Gates, stick to your Windows OS, u aint got a clue. MS need 2 fix up, dey think 2 way ahead in terms of power and supremacy wen really dey still hav no sense of domination in Japan, wheras Nintendo does. Nintendo still kicks its ass for miles. I dnt care wot all u X-block lovers say, Nintendo will never b up 4 sale, n dats a garuntee!

___________________________________________

Dnt h8 da playa h8 da game!
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Mecha Ghandi 5 Aug 2004 11:09
3/8
Adam M wrote:

Nintendo's shares jump and fall in
>the 3% margin regularly, so this change really
>isn't anything special.


Except the rise is well above the Nikkei average, and Nintendo had made no other anouncements that would have prompted this rise... so people have clearly reacted on the rumour...
Ben Furfie 5 Aug 2004 17:19
4/8
ryohazuki-san wrote:

>Ahh please, dis da bullish story ive ever read on
>ere, infact its so pathetic dat i wud love to
>slap Bill Gates round da face wiv a X-block if i
>had da chance. True dat he does posess "financial
>prowess and aggressive business practise" but dat
>doesnt mean to say dat u can go round buyin a
>company dat would look so shyte under Microsoft
>rule. Personaly, Gates, stick to your Windows OS,
>u aint got a clue. MS need 2 fix up, dey think 2
>way ahead in terms of power and supremacy wen
>really dey still hav no sense of domination in
>Japan, wheras Nintendo does. Nintendo still kicks
>its ass for miles. I dnt care wot all u X-block
>lovers say, Nintendo will never b up 4 sale, n
>dats a garuntee!
>
>___________________________________________
>
>Dnt h8 da playa h8 da game!

First learn to speak English. Secondly, ignore my sig for the minute, XP has never, not once crashed on me, before that I couldn't stand Windows. Thirdly, If you knew anything then you would know that Microsoft came very close to buying Nintendo during the development process of both the Gamecube and Xbox, infact they both showed each other there plans while merger details where being put in place. The deal fell through because Microsoft solely wanted the Nintendo name, IP and their infrastructure for the Japanese market including having Nintendo Japan as a subsiduary of Microsoft Game Studios (not unreasonable considering it was more of a buyout disguised as a merger to protect Nintendo's pride), using the Xbox console. However, Nintendo wanted to remain incharge of all business with no input from Microsoft in its running of the console which it wanted its Gamecube as the platform, with Microsoft contributing no more than the money needed to compete with Sony. Now who was being unreasonable?

And finally, the Japanese are technologically racist, if it isn't Japanese and their is a Japanese alternative even if it is far less powerful they will choose that anyday over a foreign product. Proof? Xbox isthe most sold foreign technology product in Japan ever, thats EVER.
bubicus 5 Aug 2004 19:29
5/8
Please provide news links to prove your point about a previous Nintendo buyout by Microsoft during Xbox/GameCube development. As far as I know, that was just more rumor-mongering.


>foreign product. Proof? Xbox isthe most sold
>foreign technology product in Japan ever, thats
>EVER.

Ever? Again, show us the proof. Where's your evidence to back up your rhetoric?

Here's mine: Microsoft had only sold 425,000 Xboxes to Japan by the beginning of 2004. (http://forum.pcvsconsole.com/viewthread.php?tid=8498) More Japanese buy foreign biotech products like contact lenses (http://www.pacificbridgemedical.com/publications/Japan_Contact_Lens_Industry_1997.pdf) than Xboxes.

As for whether Japan is technologically racist, it's a fact that Japan has been a top importer of US technological exports. (http://www.nsf.gov/sbe/srs/seind02/append/c6/at06-04.xls and http://www.nsf.gov/sbe/srs/seind02/c6/fig06-10.htm)


Ditto 6 Aug 2004 09:16
6/8
bubicus wrote:

>Please provide news links to prove your point
>about a previous Nintendo buyout by Microsoft
>during Xbox/GameCube development. As far as I
>know, that was just more
>rumor-mongering.


>foreign product. Proof?
>Xbox isthe most sold
>foreign technology product
>in Japan ever, thats
>EVER.

Ever? Again, show
>us the proof. Where's your evidence to back up
>your rhetoric?

Here's mine: Microsoft had only
>sold 425,000 Xboxes to Japan by the beginning of
>2004.
>(http://forum.pcvsconsole.com/viewthread.php?tid=8
>98) More Japanese buy foreign biotech products
>like contact lenses
>(http://www.pacificbridgemedical.com/publications/
>apan_Contact_Lens_Industry_1997.pdf) than Xboxes.
>

As for whether Japan is technologically
>racist, it's a fact that Japan has been a top
>importer of US technological exports.
>(http://www.nsf.gov/sbe/srs/seind02/append/c6/at06
>04.xls and
>http://www.nsf.gov/sbe/srs/seind02/c6/fig06-10.htm
>


I'd like to see the proof too. When MS approached Nintendo for the first time Nintendo turned them down outright. Their shareholders didn't want to sell - esp to a Western giant accused of anti-comeptitive practices in Japan. And Nintendo just didn't think it would be a good move for the business.

The NT5 kernel is a reliable operating system base. I think that MS have done wonders in standarising the PC platform. However, don't think Microsoft entering an industry is good news for that particular industry. Microsoft work towards monopoly status and eventually remove any choice the conusmer has while forcing more innovative players out of the market.

I'm personally hoping they fail.
config 6 Aug 2004 10:06
7/8
Ben Furfie wrote:

>Secondly, ignore my sig for the minute, XP
>has never, not once crashed on me, before
>that I couldn't stand Windows.

You sir, possess magical powers. I suggest you embark on a career in desktop support. With the your "anti-XP crash" aura you will be able to name you price at offices across the land.

ryohazuki-san 7 Aug 2004 02:39
8/8
Thanks to all da peeps dat stood up to Ben Furfie, u fassy, dnt b dissin da way i speak, i dnt have 2 use MS word thesaurus to chat on ere like u mite, its a my lingo, so piss off!

Like evry1 sed, proof needs to b given about your statements besides we all no u probably slept wiv Bill Gates 2 find dat out if it wer true.
___________________________________________

Dnt h8 da playa h8 da game!


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