By Sam Mattera
The last six years have been terrible for Nintendo’s (NASDAQOTH: NTDOY ) shareholders. After peaking in 2007 with a market cap near $85 billion, Nintendo has steadily collapsed and has now lost over 76% of its value over the last five years.
Unfortunately, this could be the beginning of the end for the once iconic video game company. Apple’s (NASDAQ: AAPL ) coming entrance into the video game market, a fairly likely possibility, could signal the end of Nintendo.
Nintendo’s business model is becoming obsolete
Ironically enough, Apple and Nintendo have similar business philosophies. Both believe in marrying hardware with software, and maintaining strong control over their devices. Consumers buy Apple devices to get access to their operating systems (iOS, Mac OS); likewise, gamers buy Nintendo’s consoles to play Nintendo’s games.