News: Nintendo Cosying Up with Cloud Firms?

Acer has acquired one of Nintendo's main online service partners. Could it be Nintendo's stepping stone to a cloudy future?

Taiwanese computer firm Acer Inc. has acquired iGware, one of Nintendo's key providers of services for its online gaming networks. Acer reportedly forked out $320 million for iGware, who had recently signed a deal to continue powering Nintendo's online networks for its upcoming Wii U console.

While the effect the deal has had on Nintendo has been minimal, they are set to fork out $20-$30 million a year to Acer to continue handling the online portion of their business.

iGware, who will be re-branded as Acer Cloud Technology Co, is headed up by Wei Yen, a man very familiar with working with Nintendo. One of his business ventures provided programming tools for Wii Remote and MotionPlus technology. He also founded the firm who won the deal to develop the Gamecube's 'Flipper' graphics chip, shortly before it was acquired by ATI.

Under Acer, it is likely that iGware will be expected to expand aggressively in the lucrative cloud market. While Nintendo themselves have batted off suggestions it could move into a pure cloud-based gaming platform like the one pioneered by OnLive, their proximity with big-hitting cloud providers does leave food for thought for the future.


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