Khan: Nintendo should invest in Oculus Rift, SEGA or Capcom


As Nintendo’s revised financial forecast confirmed to the world that the Wii U still wasn’t achieving the company’s sales goals, everyone’s begun to advise what they should do to correct the situation.

Whilst much of the conversation centres on bringing their Virtual Console library to smartphones, Virtue’s CFO Asif Khan has shared another point of view. He believes that Nintendo should use their cash reserves to invest in Oculus Rift or purchase the company outright, perhaps even considering acquiring SEGA or Capcom to ease their own developement cycle pressures to deliver a steady stream of software for their platforms.

“Nintendo has a mountain of cash, which allows them to take risks and fail from time to time,” Khan began in an article on Games Industry International. “This is why they have been around since 1889 and have been able to adjust to market trends. Virtual Boy was a complete flop, but it was an attempt at doing something new and exciting.

“I had a chance to see Oculus VR’s Rift Crystal Cove prototype at this year’s CES, and it was a mind-blowing experience. Clearly VR is a user interface that is very close to being ready for prime time, and Microsoft and Sony are putting up barriers to Oculus. Nintendo has a great opportunity to take a minority stake in Oculus VR, or buy the whole dang company. Either way, this is an example of how Nintendo could acquire innovation and show that they are still a brand that can wow people. Even if they don’t acquire the whole company, supporting and developing games that use Oculus VR’s innovative tech would be a great way to differentiate Nintendo from Sony and Microsoft.”

He continued, “If that is too crazy of an idea, why not acquire SEGA or Capcom? One of the main problems Nintendo has is their development cycles are so long that they never seem to have enough quality titles available. Expanding their development teams to include SEGA and Capcom is something they can easily do with their balance sheet and would be accretive to earnings within a few years. Instead of sitting on a pile of money, Nintendo should do something to grow the company before it starts bleeding cash.

“Why not license existing brands out to film/TV studios in an effort to achieve profitability and improve brand recognition in key demographics?

“Nintendo has made movies in the past, and they have had TV shows, but they currently aren’t doing either. Nintendo could easily monetise their brands by licensing content to Disney, Sony or anyone else in Hollywood that wants to make money. It is a low cost, high return effort on their part and would help them get out of the hole they are in financially. At the same time, it could reinvigorate their brand in the eyes of an age group that has no recollection of the NES. Put simply, bring back the cereal, Nintendo!”

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