Apple and Nintendo: A Compatibility Study

by Jonathan S. Harbour

Apple, Inc. (NASDAQ: “AAPL“) is booming with a stock price of $395 (up $5 just today). Compared with rivals Microsoft (“MSFT”) at $26, IBM (“IBM”) at $193, and Hewlett-Packard (“HPQ”) at $28, Apple is sitting at the top of the computer industry with a market capitalization of $367 billion. Who would have guessed such a feat? This has all happened within a half-decade. Hard to believe, but five years ago, no one had heard of iPhone or iPad or iOS. Apple had a compelling product in the iPod which was developed into the aforementioned devices. Brilliant engineering and brilliant marketing!

Consider this company in an ancillary industry and in a different market: Nintendo (TYO: “7974“), with a Tokyo Exchange stock price of 11,250 yen (approx $144). (1 yen = 0.0128 dollars). Compared with rivals Sony (“6758″) at 1,397 yen, Konami (“9766″) at 2,350 yen, Namco Bandai (“7832″) at 1,136, Nintendo is sitting at the top of the Japanese electronics industry with a market capitalization of 1.44 trillion yen. It’s closest rival, Sony, has a market cap of 1.41T, while Konami has 326B and Namco Bandai has 256B.

If we narrow these companies down to just those manufacturing video game systems (Microsoft, Nintendo, and Sony, makers of the Xbox 360, Wii, and PlayStation 3, respectively) and include Apple, Inc., an interesting bit of trivia is revealed:

Company       Stock Price (USD)    Market Cap (USD)
Apple         $395                 $367 B
Microsoft     $26                  $216 B
Nintendo      $144                 $18.43 B
Sony          $18                  $18.05 B

How do we interpret this data? The market cap represents all of the publicly traded shares of a company. So, it would be absolutely impossible for Microsoft to acquire Apple, for instance (or vice versa). It would also be impossible for either Nintendo or Sony to acquire the other. The best they could do would be a 50/50 merger since their market values are very similar.

However, even if Nintendo and Sony were to merge, they would have no hope of touching Microsoft in the video game market. Unlike either of these two Japanese companies, Microsoft is “playing” in the video game industry as a hobby of sorts, a distraction for the board and more creatively-minded executives (in my opinion). There are crossover technologies in play, such as Windows Phone 7 and Xbox 360 development via XNA Game Studio (a free SDK for developing games on these platforms in the indie market).

What I do find most interesting, however, is how easily Apple could gobble up either Nintendo or Sony (or both), assuming the Japanese government would allow it (and most likely, they would not).

The cultures of Sony and Nintendo are quite different, so if they were inclined to merge, they would need to continue to function independently. In my opinion, a top-to-bottom merger of all departments would result in a single company with greatly disrupted production, not a single company with doubled production. Due to their differences in corporate philosophy, the merger would not produce synergy, it would result in conflict, with lower net income overall than the two are achieving independently. No, that would not work.

What about Apple and Nintendo? Apple could acquire controlling share of Nintendo for roughly $12 billion (taking into account an increase of stock price once the acquisition begins, unless a fixed buyout offer is made). These two companies do seem to have a similar culture and philosophy of doing business. While cosmetic, their products even look similar with a common black or white theme and a prominent logo, not to mention rabidly loyal fans!

Microsoft and Sony customers tend to favor the products of these companies, but often do not care for the behavior of these companies–that is, the basic philosophy of Microsoft and Sony does not tend to put the customer first, as they are loyal to shareholders first, executives second, and customers somewhere at or beyond third. In comparison, both Apple and Nintendo have a markedly different approach to customer service, and customers “feel” the difference. It’s palpable the first time you turn on a device created by either Apple or Nintendo that they are in the business to please you (and count on profits to continue giving them the opportunity to do so). Contrasted with the corporate philosophy of both Microsoft and Sony, one can see why customers will declare loyalty for the company and it’s products (in the case of the former two), and only declare loyalty to a product (in the case of the latter two).

Imagine a world in which Apple were to acquire Nintendo. While maintaining Nintendo’s individualism and identity, the two companies would share technology at an intimate level. We might see Nintendo’s enviously successful products like Super Mario Kart, Super Mario Bros., and Zelda available for iOS (iPhone, iPod, and iPad). Likewise, we might see popular apps and games show up on a future Gameboy model (imagine Angry Birds running on Gameboy and Wii). Nintendo’s latest handheld model, the 3DS, has been a failure at retail, due in large part to the availability of 3D titles for the DS handheld. The large-format DS was also a failure, while the Internet-enabled DSi has been a huge success. One might presume, based on these facts, that Nintendo is now re-thinking it’s strategy for the handheld. Perhaps they will build a new handheld system with a single touchscreen in the style of a tablet. This is certainly more likely with Apple calling some of the shots.

What other ramifications might we see after such an acquisition between Apple and Nintendo? Google, Inc. (NASDAQ: “GOOG”) is trading at $625 with a market cap of $203B (4th place behind Apple, IBM, and Microsoft). Google has recently acquired the cell phone division of Motorola (called Mobility) in order to secure guaranteed hardware availability for it’s Android platform. Google is highly competitive with Apple, vying for a greater share of the smartphone market that Apple dominates. A bevy of new software franchises for the Apple hardware might compel Google to begin looking at opportunities to secure both hardware and software. Sony would look quite tasty in such a situation, given it’s hugely successful Ericcson cell phone products. If Google were to snap up Ericcson, that would greatly strengthen it’s smartphone hardware market share while also giving Google a compelling entry into video game software.

Odds are, even if these wildly speculative ideas were on the mark, it is doubtful that the Japanese government would allow the loss of two of its greatest national treasures. But in an economic decline, anything is possible.

Shred That Code!

I want to talk about writing code today. Do you shred when you write code? Is there so much logic and process in your head that your fingers are barely able to keep up, and when you build, it runs flawlessly on the first try without any errors? Then you’re shredding. The keyboard is your Gibson, the keys your strings, the build key your pick. Shred that code! Better phrased, shred your keyboard. The code is the music.
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Busy Winter

I’ve had a busy winter and early spring so far. In January, I completed work on Visual C# Game Programming for Teens (check the forum for details), then quickly cranked out XNA Game Studio 4.0 for Xbox 360 Developers. Now that spring has kicked in, I find myself drifting quite a bit when I sit down to write, and day after day I end up listening to music, watching youtube videos of Mustang and Ford GT street racing (getting ready for Fast Five!), and mess around on fnsweet.com among other things. I abandoned Facebook. Don’t even get me started on that. Oh, and I converted my Mustang GT into a bona-fide Roush Stage 3.
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Shut Up and Write

I’ve been ranting a lot lately about technology but those are just overly zealous complaints that build while I’m in the middle of using a technology that doesn’t seem to operate at my frequency, so to speak. You know how some people, places, things, just seem to resonate with you, while other people, places, and things do not? And no matter what you do to try to make it work, it just never seems to mesh–the relationship, the location, or the thing/technology you’re involved with? I think there is a resonance involved. Even if I go into something with the best of intentions and a pure attitude, if it just fails to launch–explodes on the launch pad–is there anything I can do about it? I’m beginning to see that there isn’t! So much in life is out of our hands, beyond our control, and we just have to go with the flow. Such is my experience with many software products; namely, XNA Game Studio.
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XNA is Not Academic

I’ve been using XNA Game Studio since it was first launched in 2006 shortly after the release of the Xbox 360. For the uninitiated, the original “XNA” was Microsoft’s attempt to force everyone in the game industry to use its proprietary tools in a managed coding environment, and no one put up with it. Re-branded as a technology for cross-platform game development, XNA is now the overall “scoop” that contains the XNA Framework and XNA Game Studio, the current version of which is now 4.0. Why the need to segregate the terms is a mystery, because these two pieces are all that make up XNA, and the common use of the term is “XNA,” while Microsoft groupies (that is, MVPs) banter about it being properly called “XNA Game Studio.”
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Evolution of Casual Game Assets

Today, it is possible to create a game that runs on Windows or a retail Xbox 360 using entirely generated game assets–characters, world, environment, etc, using XNA Game Studio 4.0. The cost to develop the game for distribution is only $99 for an annual membership, which includes a license to sell the game on Xbox Live Arcade under the Indie category. Every Xbox Live member has their own custom Gamer Avatar, which is a 3D representation of their virtual presence, representing them in the online world. This avatar can be customized with free and add-on content, from designer jeans to sci-fi regalia.
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Internet On A Chip: Masamune and Kurzweil

Now reading the SAC novels by Junichi Fujisaku, finished the first two, reading the third today. They read like episodes of the TV show, which is fitting since one of the lead writers is the author. There are some minor things lost in translation but you get the gist of the story. The reason why I got interested in GITS in the first place is for Kurzweilian singularity philosophy.

GITS is perhaps taking place AT the singularity and soon after, but if you extrapolate technology ahead 15-20 years, it may be seen as evolutionary advance, progress in technology with the mapping of the brain and full understanding of neural signals so that they can be intercepted and returned artificially.
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VB For Teens 3E Cover Art

Here’s a sample image from the cover of Visual Basic Game Programming For Teens, 3rd Edition, beautifully drawn by artist Eden Celeste. I love the cartoon style of this set..this is one of 8 characters she has drawn for the book. I am working on a card battle game using characters from the book. I think this art style is perfect for a low-complexity card game!

Putting The Squeeze on Iran

Americans are a hard working people, among the most productive in the world, per capita. The problem is, Americans spend so much time working to earn money in order to buy more of the stuff that advertising has convinced us that we need, that we stop paying attention to the rest of the world. It’s a side effect of the targeted brainwashing techniques used in advertising campaigns–one strong reason to mute your TV or radio any time an advertisement comes on. News agencies are going the way of Wikipedia in the near future, so blind advertising is on the way out, finally. There are many ads I do want to see, but most are not relevant to me. This is the great revolution in advertising that Google discovered before anyone else and has reaped huge benefits from their foresight. It’s somewhat invasive, but I’ll take that over idiotic ads for hair replacement therapy (and worse). More and more of my fellow Americans are becoming aware of how advertising campaigns work, and more of us are not falling for it like our parents did (hook, line, and sinker, game shows and all).

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Is Alien Life Out There?

Extraordinary! According to this story, astronomers are photographing alien planets in nearby star systems! In my opinion, the likelihood of astronomers finding an Earth-like planet are now quite high. 20 years ago, there were no such instruments capable of the amazing photos we’re seeing today–of actual planets orbiting other stars! I never dreamed such a thing would be possible without getting in a spaceship and traveling to other star systems, in Star Trek fashion.

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Build Your Own RPG

I completed work today on Visual Basic Game Programming for Teens, 3rd Edition, which should be available in stores by late December. It was a monumental task this time around! A 100% rewrite with new focus on gameplay rather than graphics, abandoning DirectX in favor of Forms-based GDI graphics. The result is very good and I’m pleased with how well it turned out. Sure, this is an old-school RPG engine, and the graphics are simple, but it has a rich game engine with four complete editors: Level Editor, Character Editor, Item Editor, Quest Editor. Lua scripting makes it possible to build custom scenarios without opening up the Visual Studio project, specifying the level, monsters, quests, items, treasure drops, all in script code. The artwork is all credited to Reiner Prokein at www.reinerstileset.de–thanks Reiner! Continue reading

Permanent Suspension of Disbelief

I get lost easily and often.

Not the sort of lost where a GPS or a map would help, and not the sort of Lost where I find myself on a strange island being ever-redesigned by writers who haven’t a clue what they’re doing. The kind of lost to which I’m referring is a complex world of diversion. I do not live in the same mental construct of the world that most people imagine. The world in which we live is defined by our impressions and visualizations, not by some absolute filter–there is no single “camera” through which the world exists. Every person experiences life through the filters of their accepted beliefs. I believe almost anything that can be imagined can be made–or already exists in some context. I’m not different from anyone else in the world–if I were to suggest such a thing, I would be a narcissist or paranoid schizophrenic, and that is not the case. No, what I am referring to is my personality type.

My personality type is INTP. My primary focus is internal, where I deal with things rationally and logically. I take things in primarily via intuition (my biggest filter). I live in the world of theoretical possibilities, valuing knowledge above all else. I do not like to lead or control people. Independent, unconventional, and original, and predictably so.

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Celtic Crusader 3.0: book goes into 3rd revision

Visual Basic Game Programming for Teens is one of the best selling books in the Premier Press/Course PTR catalog in the field of game development. Originally released in 2004 with a focus on Visual Basic 6.0 and DirectX 8, it was then revised in 2007 to Visual Basic .NET 2005 and Managed DirectX 9. The third edition changes everything! No longer focusing on DirectX at all, the emphas is now is on creating gameplay with editors, rendering using Microsoft Forms and GDI+, and scripting of quests. The book is now half done and scheduled for completing in late September 2010. Kids and adults alike enjoy learning how to make their own Role Playing Game (RPG) with this book. Since the new third edition focuses even more on gameplay, and less on graphics rendering, I believe this will be the best edition yet!

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Gaming: Return To Old-School Values

I’ve had a little more free time on my hands this summer than I have had in the last ten or so years, which has given me time to read a lot more and to think about the world a bit. A hectic life of rushing to work, rushing through work, rushing home, taking the kids to their various activities, and so on, tends to isolate one from the goings-on in the world at large, something I’ve gotten back in touch with in recent months. One trend I’ve gotten caught up with again, after a long hiaitus, is the video game press.

Back in the old days of computing, progress was slow enough for there to be magazines dedicated to just one computer–not one brand, but one model! There was once a magazine devoted to just Commodore PET (it evolved into COMPUTE! magazine) , and many others which either took on new identities over the years or folded as the computers became obsolete.

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Star Trek Online: Am I Just Playing a Game Here?

Game design theorists call the study of gameplay “funativity”, and this is becoming known as the field of ludology–what makes games fun, why do we play them, and how does one create a fun game that will (most likely) be worth some money for a studio? These are questions that not even the masters of this new academic field can answer yet, so young is the field. Game theory, however, has far-reaching and widespread adoption in many other fields, so there is something to our desire to play (as adults). Continue reading

Multi-Threaded Game Engine Design

The goal of this book is to teach intermediate game engine development with a focus on threading for performance. Since a game engine is already a very difficult thing to develop and present in a book, that is necessarily a bulk of the book. The first 5 chapters introduce threading libraries with conceptual examples, while the final chapter experiments with threading the engine in various ways with benchmark demos. Since this engine is also being maintained separately from the book, it will continue to evolve and this version represents the latest version (which has been greatly expanded as a result of the book).

2011 Ford Mustang GT: 5.0 V8 returns

Well so much for the twin-turbo V6 that many suspected would power the next GT (sourced from the new Taurus SHO).  Official news release: Ford has a new engine to debut in 2011:  DOHC 4-valve 5.0 V8, putting down 412 hp, 390 lb/ft.  The engine will be equipped in the new 2010 Grand Am racecar next fall with a 40th anniversary Boss 302 edition (race only unfortunately). This is just my opinion, for what it’s worth, but it seems to me that Ford intends to strangle GM and Chrysler and wreak havok on the Camaro & Challenger, with a car 500 lbs lighter and comparable power to the SS and SRT8. Unless, of course, GM and Chrysler fully engage in the pony war with new models of their own. Since neither has anything but a tranditional pushrod engine, I don’t see them upping the power/weight ratio without wrecking gas mileage.

Starflight – The Lost Colony submitted to Indie Games Festival (IGF)

After three years of development, with much downtime and turnover, Starflight – The Lost Colony is finally finished! Visit www.starflightgame.com to download the game. We have submitted the game to IGF for the main competition, which is stiff this year with 300 main entries, and 200 student entries!

Here is the URL for the IGF submission page: http://www.igf.com/php-bin/entry2010.php?id=307

 

Beginning Game Programming, 3rd Edition

The third edition of my introductory DirectX book is now available! This book was extensively rewritten to update it to work with the latest version of the DirectX SDK (although the content is still based on 9.0c). New chapters covering advanced sprite animation and mesh rendering have been added. The original examples are all gone, including the Bash game–replaced with updated examples and a new 2D side-scrolling shooter in the final chapter. As in previous editions, this one includes a set of exercises and quiz at the end of each chapter and is suitable for both high school and introductory college courses on DirectX.

Buy on Amazon.com

Aquaphobia: Mutant Brain Sponge Madness

Here are some images of the latest game project I’ve had the pleasure of working on with Dave Wessman (of LucasArts fame) and UAT students RB MacDonald, Jared Miller, Tim Machaud, Sean-Ryan Smith, Michael Viscio, and graduate artist Ron Conley (who also worked on Starflight two years ago). 

Citizens of The States Must Pay Attention!

According to this Bloomberg article, another 467,000 jobs were lost in June, with unemployment at 9.5%, the highest since 1983. I’m no Obama fan. But what angers me is the stupidity of most Americans. George W. Bush got us into this mess, with his illegal war and out of control spending. Obama inherited a huge mess. He’ll do his own kind of damage to the country, but let’s be honest, he probably couldn’t try to do more damage than Bush has done. And, had Bush remained in office another term, we would be having these same economic problems. In my opinion, this very fact shows how illegitimate the Rush Limbaugh and Sean Hannity and other radio personalities are, stupidly blaming Obama for all of our woes. They know better.

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Farewell, Borland…It’s Been Fun

Today I received an email from Erik Prusch, President and CEO of Borland, to announce “exciting news.” I’m just as skeptical of corporate spin as I am of government spin, so I had a hard time reading the words in this announcement at face value. I have been critical of Borland for many years, because I’m a disgruntled former customer–or rather, fan–of Borland’s language products from a bygone era (Google “Turbo Pascal”; you’ll find it in the software fossil record). About two years ago, Borland announced the sell off of their development tools division to Embarcadero. Okay, I can live with that, I guess. So will Borland Delphi and C++Builder be called “Embarcadero Delphi” and “Embarcadero C++Builder”? That just doesn’t work for me (besides what’s the deal with this completely forgettable company name?).

Last year, I spent some time with Turbo C++ 2006, the free version of C++Builder which is no longer maintained (i.e. no Turbo C++ 2009, only C++Builder 2009). Quite simply, I loved it. After much digging, I found some fans who had gotten DirectX 9.0c code to compile with Turbo C++, which is my preferred tool but one that is ultimately not supported. I can’t very well ask my students to download this obscure product and use it for their assignments, nor can I provide only Turbo C++ projects with any textbook I’m writing.

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