But, if you were to believe CNET, it's not entirely out of the question. Nintendo, not the Ferrari, mind you. Apparently Cisco is looking to throw around some big bucks and add to its recent acquisition of set-top maker, Scientific-Atlanta. Tivo and Nintendo are two of the big names being thrown around. Here's the link.
"A stretch? Not really. Microsoft, which is emerging as a key competitor to Cisco in the home entertainment market, is already in this market with the Xbox 360. Gaming has already proved to be a strong application for broadband, so it makes sense that Cisco would want to own a game device to help drive more traffic on its network. With its popular GameBoy product, Nintendo would also provide Cisco an entree into the mobile-handheld market."
I don't really see it happening. Nintendo has a warchest of money tucked away in Japan and they appear to be a company that is very much loyal to their country. Cisco may like picking fights with Microsoft, but they'll have to dillute the market with a 4th console if they really want to attack Microsoft in the gaming sector. Nintendo is not for sale.