Gaming consolidation?
Video-game industry analysts stoked speculation of a possible buyout Capcom Co. by Nintendo Co., one of the world's top three game-console makers.
The sector is ripe for consolidation, and a Capcom buyout would substantially boost Nintendo's position, said James Lin, an analyst with Jeffries & Co. "All of these companies are up for sale, except Microsoft (MSFT: news, chart, profile) and Sony (SNE: news, chart, profile)."
Analysts said Japan-based Nintendo is expected to make a major announcement Tuesday. Officials at both Nintendo and Capcom, of Osaka, Japan, declined comment.
Nintendo could use Capcom's software to drive buys of its lagging GameCube console.
GameCube is second worldwide but ranked behind Microsoft's Xbox and Sony's PlayStation 2 in the United States, said analyst Paul Kaump, of Doughery & Co. LLC.
Nintendo has suffered because its game software -- Pokemon, Super Mario and Donkey Kong -- cater to younger children. "They are trying to shake their image a little bit and attract older gamers," Kaump said.
Capcom, which has created game franchises such as Street Fighter and Resident Evil, would be a logical buy for Nintendo, analysts said.
"Nintendo has to do something to beef up its software," said analyst Shawn Milne of SoundView Technology.
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Notez bien le conditionel tout de même ...
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