Nintendo to purchase Capcom!!!

[Dyne]

Oh yes, here's the official story if anyone wants it.

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) and Sony (SNE).*"

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.

Luisa Beltran is a reporter for CBS.MarketWatch.com in New York.

Right....... here.


*Fascinating. Absolutely Fascinating. If every company is for sale... well... then... maybe Capcom was flirting with Nintendo by releasing the Capcom Five?

**AHA! They always decline comment on things like this.