Apple Inc. (AAPL) Is Moving Into Video Games

Some of the most popular games for the Wii — Wii Sports, Wii Play, Wii Fit — were simplistic games that appealed to a casual, non-core audience. More competitive online games like Madden and Call of Duty did not sell many copies on the Wii.

Avoid Nintendo

Since its peak in 2007, Nintendo’s management has executed poorly. Compared to the Wii, the Wii U has been a tremendous failure, and sales of Nintendo’s console should not be expected to improve, as competition is only set to intensify.

The biggest threat could come from Apple, a company that has shown interest in getting into gaming. iOS is already a major gaming platform, and Apple could expand that dominance. Apple’s decision to add controller support to iOS 7, coupled with a widely expected television set, could make the Cupertino tech giant a formidable foe, particularly to Nintendo, a company that continues to rely on both casual gamers and the handheld market — one area where Apple would excel.

For now, investors should avoid Nintendo.

The article Apple Could Put the Final Nail in Nintendo’s Coffin originally appeared on Fool.com and is written by Sam Mattera.

Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft.

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