Downland1983 makes a very good point, buying the brand and removing it from the market. However the value placed on the brand is speculation. Hasbro did the same thing with Monopoly and Parker Brothers. Interestingly, Hasbro revived the PB brand a couple of years ago. Somehow they kept PB but not coleco.
Coleco had no videogame hardware IP. It was from texas instruments which nintendo and sega as well as japanese msx computers based their graphics technologies on. And coleco's video game software ip were mostly handcuffed by third party licenses. Coleco abandoned video games in 1985, one year earlier Mattel was able to sell its video games business for $20M.
Actually, Nintendo engineers were well aware of the ColecoVision and greatly impressed by it during the early development stages of the Famicom (which would go on to become the industry dominating NES). According to Nintendo's own devs, the ColecoVision was "a huge influence" on Famicom development.
"During the Famicom’s development, Nintendo was sharply aware of one product in particular. This was the ColecoVision belonging to an American firm called Coleco. (Fig. 1) Coleco was a toy manufacturer that produced items such as a portable game console that incorporated fluorescent display tubes. At the time, the Atari 2600 was a hit in North America. (Fig. 2) ColecoVision was developed by Coleco in order to compete with it.
Just before Nintendo started work on the Famicom, Coleco employees visited Nintendo with a prototype ColecoVision in tow. R&D2’s engineers were shocked at seeing smoothly animated graphics for the first time.
Takao Sawano (presently deputy section chief of Nintendo Entertainment Analysis & Development Division 1), a member of the development team and one of the people in charge of software development, brought the ColecoVision home and got his parents to play. Their response was overwhelmingly positive.
Sawano joined Nintendo in 1972 and, together with Uemura, participated in the development of games that utilized specialized LSI chips as part of R&D2. He was then recruited to R&D1, who had their hands full with developing the Game & Watch. However, he returned to Uemura’s side for the Famicom development project.
Sawano’s participation had a significant impact on the Famicom’s specifications. It was he that proposed the D-pad on the controller.
It is often said that the Famicom was modeled on the Atari 2600. Certainly, without Atari‘s success, it’s entirely possible that Nintendo would not have taken the plunge with the development of a domestic game console. However, Uemura states that it was the ColecoVision that technologically spurred him and the ColecoVision he had in mind when considering the image of the product."