Will Microsoft's dream of acquiring Nintendo ever be fulfilled & what will happen if it does?

Recently, Microsoft won its long courtroom struggle against UK regulators regarding its proposal to buy the highly popular game development studio, Activision Blizzard. As the tech giant gains this massive upper hand over the market with this deal, many believe Microsoft may turn its gaze towards Nintendo next.

Many may not know, but Microsoft had already tried to buy the Japanese gaming giants once before. But back then, they were boldly declined by Nintendo. Although many believe it was a great decision from Nintendo, the CEO of Xbox thinks otherwise. What will happen if Microsoft acquires the makers of Mario? Let’s take a deep dive.

Back in the early 2000s, when Microsoft first released their signature console, the Xbox, for the first time, they went to Nintendo with the proposal. Back then, Nintendo was behind Sony PlayStation in terms of hardware.

So Microsoft, with all of its financial might and a brand new console, went to the creators of Mario with a proposal of acquisition. However, they didn’t plan to take full control of the company but wanted to handle the hardware, while Nintendo would only focus on making video games.

Not only was this proposal rejected, but some reports claim that the higher-ups at Microsoft were laughed out of the room by the Nintendo. Years later, reports exposed an email from the current CEO of Xbox, Phil Spencer. Where he expressed interest in acquiring Nintendo. He requested his higher-ups to prepare a proposal once again.

This email was sent in 2020, two decades after the initial proposal. Now, both the companies are in a very collaborative relationship. But after the recent approval of their massive $68.7 billion deal to acquire Activision Blizzard, many believe Microsoft may once again pursue their dream of acquiring Nintendo.

On social media, veteran Nintendo and Microsoft fans are engaging in heated debates regarding this proposal. Some believe Microsoft’s dreams of acquiring Nintendo will always remain a dream, while others say Nintendo’s lack of hardware strength can only be saved by Microsoft.

In the end, with my research and a little personal experience, I believe that Microsoft will not be able to acquire Nintendo in the near future. Nintendo has its flaws and shortcomings. Especially in terms of maintaining relevance with the audience, as well as providing hardware that can keep up with the standards of modern gaming.

But the thing that made Nintendo so successful was their innovation and personality, which are still going strong. All of their consoles and games carry an identity that makes them very distinct in the gaming industry. No other company, including Microsoft, can replicate what Nintendo does.

So, acquiring Nintendo and regulating its R&D department would mean stripping the company of its biggest strength. And in business, this would make it a ‘very bad deal’.

If Microsoft were to acquire Nintendo, there could be several implications for the gaming industry:

Potential impact on the gaming industry: If Microsoft were to acquire Nintendo, it could have a significant impact on the gaming industry. Nintendo is a major player in the industry, and its acquisition by Microsoft could lead to consolidation and a shift in the balance of power. It could also lead to changes in the way games are developed, marketed, and distributed.

Cultural differences between Microsoft and Nintendo: Microsoft and Nintendo have very different corporate cultures, histories, and philosophies, which could make a acquisition very problematic. Microsoft is an American company that focuses on technology and competition, while Nintendo is a Japanese company that values creativity, originality, and fun.

Console exclusivity and game library: Nintendo has a strong library of exclusive games and franchises, such as Mario, Zelda, and Pokemon. If Microsoft were to acquire Nintendo, it could lead to changes in console exclusivity and the availability of Nintendo’s games on other platforms. Potentially creating a very strong monopoly.

Competition and market dynamics: If Microsoft were to acquire Nintendo, it could lead to changes in the competitive landscape of the gaming industry. It could also lead to changes in market dynamics, such as pricing and strategies. This means the $60 tag may very possibly go up.

Note: We have more such stories in our dedicated gaming section, so be sure to follow them as well.

Feature image source: Nintendo, Microsoft

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