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Speculation: Cisco to "Pac-Man" Nintendo


CNET recently speculated that Cisco Systems could still be hungry after sealing the—$6.9 billion—deal to acquire cable set-top maker Scientific-Atlanta. Next on the menu? Nintendo. Nintendo?

CNET argues that Cisco would do well to acquire a "gaming device" to increase traffic on its network—Microsoft is proving that gaming and broadband is a good match. And with the GameBoy/DS brand, Cisco would have access to the booming mobile-handheld market. However, Joystiq's resident business analyst, Vladimir Cole, argues that Nintendo is an "awful fit" for Cisco. One look at Cole's breakdown of Cisco's typical acquisition strategy explains why:

  1. Find early-stage companies on the cusp of launching very successful products (1985 was a long time ago)
  2. Acquire them (Nintendo will be pricey)
  3. Fundamentally change their operations (Bye-bye, Mario?)
Bottom line: Big N ain't gettin' bought out anytime soon.

[Thanks, David & elroyhead]

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