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Unconfirmed(?) FTC Leak: MS hoping to buy Nintendo (and Valve)

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BlackNMild2k1:
Has anyone seen this? the original link has obviously been killed, but apparently there was a FTC leak today regarding some Microsoft business dealings surrounding gaming acquisitions....

I think it started with the Activision/Blizzard buyout, and now here we are



I have not read up everything on this, and just ran across it minutes ago, but I'll just see what you all think about this.

edit: this was the original source BTW
https://files.cand.uscourts.gov/files/23-cv-02880_FTC_v_Microsoft/PX7011%20(Redacted).pdf

Khushrenada:
Heh, Aug. 5, 2020. People talking crazy because of the pandemic. ;)

These e-mails just seems like some guys talking up some dream scenarios almost like us forum users used to do back in the GameCube days of how Nintendo could become the console leader again...  :o

The one comment I find rather noteworthy is the first sentence by Phil about gaming being the most likely path for Microsoft to stay relevant with consumers. Many people have wondered over the years why Microsoft keeps pouring so much time and energy into the XBox brand when it just doesn't seem to be getting anywhere in the market and is always ending up 2nd or 3rd. It's at the point where a lot of their stuff is available on PC or they are releasing their stuff on other consoles (Cuphead, Ori,) to question why bother still making XBox as no one can see what the goal is for it anymore. Which is ironic in that at the end of Phil's e-mail, he says that Nintendo's future exists off of their own hardware when it seems that might be the case for Microsoft's gaming division.

Obviously, for a company like Microsoft that is thinking about who they could acquire to help give their brand momentum, it would be stupid for them not to think of acquiring Nintendo. If Microsoft were to buy Nintendo, it would probably be the end of the console wars. Expecially now that they have Activision/Blizzard. They could make everything exclusive to XBox/PC and what is Sony going to compete with for Playstation. As long as Microsoft is in the gaming business, they'll always be thinking about acquiring Nintendo. Whether that ever happens depends on Nintendo's board of director's and if they just want to profit and walk away from the company. That's basically all Microsoft has to win over to do it.

On the other hand, things have changed somewhat since this time. First, pandemic turned out to be huge for Switch business so the idea of Nintendo not making their own hardware and going software only does not seem likely. Switch was already doing fine up to this point but has done incredible since. Second, Nintendo has opened their business endeavors beyond gaming and started taking advantage of their IP in various ways such as the Super Nintendo World theme parks and now getting into movies and possible TV shows with their IP. The Super Mario Movie just proved that there is plenty more money to be made in this way. The Board has basically said in a stockholder report that they are shifting to view themselves as more of an entertainment company. While gaming will still be a core focus, they don't want it to be the only focus. In that sense, Nintendo is awakening to a future "off of their own hardware". Third, Nintendo has instead proven to be a good ecosystem for Microsoft to release games on. I'd love to know how the sales of Cuphead and Ori compared to other platforms they were released on. XBox just doesn't sell in Japan but thanks to Nintendo Switch Minecraft is a huge seller for Microsoft in Japan. Perhaps it is Microsoft trying to win over Nintendo in case they ever sell by being more agreeable to stuff and willing to work with them to allow things like Rare games on the N64 NSO or have Banjo-Kazooie and Minecraft in Smash. But it also aids Nintendo in staying independent because it makes their system and games library stronger.

If Nintendo continues to dominate Japan, most Japanese developers will likely continue supporting them and that varied software will continue to help Nintendo make sales and have a foothold in places like NA and Europe even if Western developers continue to hesitate about developing for Nintendo instead of Sony or MS. With MS unable to get traction in that market, being friendly with Nintendo and putting stuff on Switch may be the key to getting their software to do well. In which MS almost needs Nintendo more than Nintendo would need them or to be bought by them. For MS, buying Nintendo would hopefully give them the market share and presence in Japan they would like and end that reliance but might the market then just flock to Sony instead? Nintendo's in a better bargaining position with Microsoft now by controlling that market and getting MS to partner with them on things and make deals. Likewise, Microsoft may be happy enough with the situation to use Nintendo for putting more of their software on their system and use them as a way to profit in Japan and less focused on buying Nintendo. Rather than spend the billions needed to buy Nintendo, they can just use that Switch pipeline to make millions or billions and not get through the whole return on investment from the buyout.

UncleBob:
I can pretty much guarantee that if there was every any chance of Microsoft buying Nintendo (of which there was not), now that these emails have leaked, it will never happen.  To the point where this probably soured all good will Microsoft had seemingly built with Nintendo (Goldeneye, for example).  In fact, Phil's inside man Morfit is likely to wake up tomorrow with a severed horse head in his bed and quickly sell off all Nintendo shares he has acquired.

broodwars:
Stuff like this is why I've never liked Microsoft in the gaming industry: they don't "create" anything. They just use their PC warchest to buy their competition until no one CAN compete with them. It doesn't matter if it's profitable so long as it's DEFINITELY unprofitable for everyone else. They're the Google of the gaming industry.

And everyone's happy with it "because GamePass", though something else that came up in the leaks is that Microsoft apparently has very high estimates for how much it costs them to buy Day 1 GamePass "content".

Ugh...I have my issues with Sony & Nintendo, but I just have utter disdain for Microsoft. And yeah, it doesn't help now that we can contextualize Banjo-Kazzoie & MineCraft guy in Smash as well as GoldenEye returning just being part of a move by Microsoft to try to assimilate Nintendo.

Adrock:

--- Quote from: BlackNMild2k1 on September 19, 2023, 02:27:45 PM ---Has anyone seen this?
--- End quote ---

Yeah, I’ve been following it mostly on another Nintendo message board.

This email, while embarrassing, isn’t even the worst part of the leak. Multiple unannounced games including a new Doom installment, plans for an updated Xbox Series X/S controller with accelerometers, plans for multiple new Xbox Series models including a digital only Series X, and tentative plans to launch a Series X/S successor in 2028 etc. are all worse. That has like fiscal year implications among other things. And imagine Nintendo and Sony now having this much lead up time to plan around your future releases. YIKES!

As for the email itself, I mean, it isn’t a stretch that Nintendo, with its wealth of popular IPs like the most recognizable character in the world, is considered the ultimate acquisition in the gaming industry. Every company with interest in video games that also has the capital/stocks/assets to even make a run at Nintendo if it was ever for sale (e.g. Microsoft, Apple, Amazon, Google) would love to acquire it. Unfortunately for every one of them, Nintendo is currently the most successful it’s ever been and recently expanded to movies and theme parks. A private email brazenly admitting all this getting leaked isn’t that bad, right? Bad optics but people will forget about it in time aside from occasional mentions on video game message boards.

And I doubt this changes anything at Nintendo. The company knows how valuable it is. Another company looking to merge/acquire is like Tuesday at Nintendo. This already happened at least once. Microsoft pitched an acquisition in like the early 2000s and got laughed out of the room. A hostile takeover isn’t feasible either as majority Nintendo stock is safely held by the company and trusted partners. I imagine Nintendo has been happy to reap the benefits of Microsoft’s goodwill over the past several years without really giving up that much in return. Maybe that changes now? 🤷‍♀️ However, no one at Nintendo will lose sleep if, for example, Microsoft decides to be petty and not license Banjo-Kazooie in the next Super Smash Bros. If anything, Microsoft stands to lose more by not publishing games like Ori and the Blind Forest on the eShop.

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