Nintendo should buy Healthways

[Mariah Carey]

I am, of course, not an expert or professional market insider or anything, but from my just-playing-armchair-analyst viewpoint I think a very effective, serious, and immediate foot-in-the-door for Nintendo's quality-of-life business would be to acquire (or establish some other close business relationship with) Healthways.

Healthways is a "well-being improvement" company that runs various programs designed to positively effect participants' health and quality of life. Some of its most prominent programs target weight loss, quitting smoking, diabetes management, and maintaining an active lifestyle for seniors.

OK, so they're in the same business, but what's in it for Nintendo exactly? Of course it means removing a competitor in the US (and a potential future competitor in Japan and elsewhere), but there are two aspects in particular that would benefit Nintendo greatly in breaking into this field:

- The first is getting access to Healthways' considerable headstart in regards to research in health, psychology, and social science, particularly in incentivizing and encouraging long-term positive behavior change. Healthways has conducted years of research "from fields such as gaming theory, social network mapping, community-based health transformation and more" (quote from their "About Healthways" flyer) that could prove fabulously advantagous to Nintendo for developing their QoL-related products and software.

- The second is taking over Healthways' contracts and business model: Healthways' clients are generally insurance companies and other employers, who hire Healthways to provide a kind of 'preventative healthcare' for employees and save everyone involved tons of money on future health costs and insurance claims. Imagine: everyone on a particular insurance plan or company receiving Nintendo's latest hardware for 'free' -- hardware that will also give these thousands of users instant access to Nintendo's larger digital marketplace for its 'integrated platform'.

Healthways is a small company compared to Nintendo - its market cap is $6-700 million - and would likely make an easy acquisition. Healthways has been looking to expand its business outside of the US and getting near instant-access to Japan's aging population, and being backed by a multibillion-dollar, world renowned company would likely make the merger attractive on their end, too. Healthways would also benefit from having a technological arm that they currently lack (most of their programs are currently pretty low tech, involving remote coaching by phone, contests and "games" run through a website, sometimes in-person classes).

The pairing seems pretty natural to me, but hey, what do I know? Just something fun to think about, all the possibilities.

 

[Majmun]

Shouldn't this be in offtopic?

Anyway. I'd rather have Nintendo spending money on new game studio's. I don't care for their health approach.

 

[davepoobond]

Shouldn't this be in offtopic?

Anyway. I'd rather have Nintendo spending money on new game studio's. I don't care for their health approach.

Translation: "I'd rather Nintendo go bankrupt"

Honestly their health approach is fine, business is business. They need to diversify a bit and invest in other opportunities while they still have the money to do so.

 

[Mariah Carey]

Shouldn't this be in offtopic?

I'm not sure how snarky you're being, but I did honestly consider that for a moment.

Edit: If it helps, though, the idea is that Nintendo would instantly have thousands of users (and most likely of the "blue ocean" type, to boot) signed up to their integrated platform, which would be a big and direct benefit to their videogames business.

Also, hey, if these health-related initiatives take the form of games or otherwise fun goal-based activities involving some kind of video device, it's still a video game, right?

 

[Shig]

Nintendo couldn't be bothered to look to the west for acquisitions for their main business when they had an obvious western development gap that needed filling, were absolutely bursting with money, and while a great many western devs were struggling and ripe for scooping up on the cheap.

Unless they install a totally separate and autonomous management team for their QoL division, I don't see 'em aggressively courting western companies all of a sudden.

 

[Haunted]

I'm not sure how snarky you're being, but I did honestly consider that for a moment.

On the one hand, Nintendo is still primarily a videogame company. On the other hand, the topic at hand doesn't have anything to do with videogames, except being done by a videogame company.

I'm guessing we'll put stuff like this into off-topic once Nintendo actually diversifies outside of videogames into qol and other health ventures, like we already do for Sony/MS threads that have to do with their other divisions.


Given that Nintendo is rumoured to have just acquired something for $100-$150 million, I don't think they're planning on making another big acquisition anytime soon.

 

[Mariah Carey]

Given that Nintendo is rumoured to have just acquired something for $100-$150 million, I don't think they're planning on making another big acquisition anytime soon.

WHOA how did I miss this?

Nintendo couldn't be bothered to look to the west for acquisitions for their main business when they had an obvious western development gap that needed filling, were absolutely bursting with money, and while a great many western devs were struggling and ripe for scooping up on the cheap.

Unless they install a totally separate and autonomous management team for their QoL division, I don't see 'em aggressively courting western companies all of a sudden.

Well, apparently they just did (non-Japanese, at least).

 

[10k]

Cool. Nintendo themed gyms. Hang a mushroom at the end of the treadmill, practice jumping and hitting dangling ? boxes and stomping on people.

 

[Mysterious]

Cool. Nintendo themed gyms. Hang a mushroom at the end of the treadmill, practice jumping and hitting dangling ? boxes and stomping on people.

Cool. Sony branded insurance. Hang a spiderweb near the due date, practice jumping and swinging from debt collectors and missing payments.

 

[Shig]

Well, apparently they just did (non-Japanese, at least).

Stating the amount in USD doesn't mean it was a western acquisition.

 

[Sectorseven]

For a health company that logo is frighteningly similar to a biohazard symbol.

 

[block tower]

QoL is a doomed venture. even if Nintendo does something that catches on, the big health conglomerates will copy and paste Nintendo's ideas/tech and muscle them out of the business. i think Nintendo is very naive with thinking there's going to be real success in the health and fitness market.

 

[Coppanuva]

On the one hand, Nintendo is still primarily a videogame company. On the other hand, the topic at hand doesn't have anything to do with videogames, except being done by a videogame company.

I'm guessing we'll put stuff like this into off-topic once Nintendo actually diversifies outside of videogames into qol and other health ventures, like we already do for Sony/MS threads that have to do with their other divisions.


Given that Nintendo is rumoured to have just acquired something for $100-$150 million, I don't think they're planning on making another big acquisition anytime soon.

I wonder how the off-topic vs gaming discussion thing varies based on how nintendo implements it. If it's pretty much entirely sensor driven and data with no game aspects, I could see off-topic. I think it's more likely they pursue the market with a game oriented approach (something more along the lines of Wii Fit, but maybe less direct a game) in which case I'd be very curious to see how these topics get put in different areas.

 

[10k]

Cool. Sony branded insurance. Hang a spiderweb near the due date, practice jumping and swinging from debt collectors and missing payments.

Awwww yeah!

 

[Mariah Carey]

QoL is a doomed venture. even if Nintendo does something that catches on, the big health conglomerates will copy and paste Nintendo's ideas/tech and muscle them out of the business. i think Nintendo is very naive with thinking there's going to be real success in the health and fitness market.

Who are we considering the 'big health conglomerates' that would be Nintendo's competition? There are certainly massive entities like Pfizer and Nestle, but I don't know if they would be competing so directly: remember even though Health and QoL is becoming a 'thing' for Nintendo, they still consider themselves first and foremost an entertainment company (and I strongly believe that whatever QoL turns out to be it's going to be very solidly in 'entertainment' as much as anything); it's not like they're planning to go into pharmaceuticals.

Nike's a possibility, definitely. But as far as actively trying to get folks to commit to a program, most of the competition from what I see are relatively small-time guys like Healthways or diet programs like Jenny Craig.

Again, for this particular example, it's the immediate contracts and relationships with clients and end users that would be a big advantage (as well as the air of legitimacy of having the product being subsidized by insurance companies). Competing against such a model would require a lot more than just putting out a flashy new product.

 

[block tower]

Who are we considering the 'big health conglomerates' that would be Nintendo's competition? There are certainly massive entities like Pfizer and Nestle, but I don't know if they would be competing so directly: remember even though Health and QoL is becoming a 'thing' for Nintendo, they still consider themselves first and foremost an entertainment company (and I strongly believe that whatever QoL turns out to be it's going to be very solidly in 'entertainment' as much as anything); it's not like they're planning to go into pharmaceuticals.

Nike's a possibility, definitely. But as far as actively trying to get folks to commit to a program, most of the competition from what I see are relatively small-time guys like Healthways or diet programs like Jenny Craig.

Again, for this particular example, it's the immediate contracts and relationships with clients and end users that would be a big advantage (as well as the air of legitimacy of having the product being subsidized by insurance companies). Competing against such a model would require a lot more than just putting out a flashy new product.

i understand you example, i wasn't necessarily referring to that. i was making more of broad statement concerning Nintendo's foray into the health and fitness market. in terms of technology or gear, anything Nintendo does one of the big fitness companies will copy and do better. to think Nintendo is just going to waltz into such a highly competitive and established market is silly, plus Nintendo as a brand is going to struggle to be taken seriously compared to whatever is currently mainstream.

 

[Uncle Rupee]

Nintendo could probably develop their own program more cheaply than a buy out.