[Update] Nintendo Divests Itself Of Inventory Management Subsidiary
Update (Aug. 5 at 5:56 p.m. Eastern): Nintendo has responded to our request for comment on the SIRAS sell-off. The company says that SIRAS will continue to operate during the transition without interruptions.
“Nintendo of America Inc. has agreed to sell its wholly owned subsidiary, SIRAS Inc., to InComm," said Ingvarr Petursson, senior vice president of technology and finance for Nintendo of America. "This transaction aligns SIRAS with an industry leader focused on providing products and services to the largest retailers around the world, giving SIRAS’ products and services an excellent opportunity to grow. This sale also enables Nintendo to remain focused on its core business of delivering the best video game and entertainment experiences, while positioning SIRAS to leverage InComm’s extensive technology to develop new products and services that provide benefits to retailers and manufacturers. SIRAS services will continue uninterrupted during this transition.”
Nintendo has sold off a subsidiary unit responsible for inventory management solutions. SIRAS has been acquired by gift and prepared card company InComm.
According to its website, SIRAS provides solutions to both manufacturers and retailers beyond just Nintendo. In addition to basic inventory tracking, SIRAS has created solutions for handling returns and minimizing fraud. The company has also created mechanisms to assist in the recovery of stolen goods.
The financial terms of the sale have not been disclosed. We’ve reached out to Nintendo for a statement and will update should we receive one.
[Source: SIRAS, Atlanta Journal-Constitution via Nintendo News]
This is a facet of Nintendo’s North American operation of which I wasn’t aware. Nintendo cultivated this company to create systems that were widely applicable to a variety of retailers and manufacturers.
Nintendo may have decided to sell SIRAS because it cost more to run than it was making or it could have been because Nintendo needs a quick burst of cash. Unless Nintendo decides to explain the reasoning (which I don’t expect will happen), we’re left to speculate.