Microsoft's Rumored 'Wii-mote' No Threat to Nintendo, says Iwata

[Ail]

Griffin said:

Ail said:

Griffin said:
If Microsoft wanted to kill Nintendo it would happen, Microsoft just has too much money. Nintendo should feel lucky that Microsoft does not care too much about the game industry.

Funny, because Microsoft has been trying to kill Google for several years and they have been failing hardcore.

I guess the true reason must be that they don't care so much about the internet....

 That is completely different then the gaming industry.  Microsft can do things on the fly to greatly increase sales if they wanted in the game industry.  They have enoungh money to drop their system down to $100 for the elite if they wanted, now how are the other guys going to compete with that.  What would happen if MS decided to buy Take two, which is only going for about 2bil.  Think of how many other game companies they could buy if they wanted.

What would happen if Microsoft decided to buy TakeTwo is that their stock would tank by at least 5-10%.

The main reason would be the decrease in Operating Margin that would come out of the acquisition.

Having Heaps of money doesn't mean you can go around buy what you want. Microsoft is accountable to its shareholders and shareholders as a whole do not usually like when their company goes around throwing money away....

When you acquire a company you have to be able to demonstrate to the market that the acquisition will actually benefit the bottomline of the company at some point in future ( for big acquisitions > 1 bill), small ones they have more freedom....

PS : How is online advertising so different from the game industry ? Last I checked the gaming industry was actually bigger than the online advertising thing. And low and behold the 2 segments of Microsoft with little or no profit are the Entertainment division and the online division....