Microsoft Gaming chief Phil Spencer reportedly considered acquiring Nintendo, stating that it would have been a “career moment.” In a leaked email obtained from the FTC v. Microsoft case, Spencer expressed his belief that Nintendo was the ideal asset for Microsoft in the gaming industry and could significantly contribute to the company’s consumer relevance.
However, Spencer acknowledged that Nintendo’s financial situation made it unlikely for the company to actively seek buyers as it was sitting on a substantial amount of cash. He also noted that Nintendo’s board of directors had not been proactive in pursuing market growth opportunities. Though, there was a possibility of change in the future, as one of Microsoft’s board of directors, investment company ValueAct Capital, had been acquiring Nintendo shares and expressed support for an acquisition.
This is not the first time Microsoft has pursued acquiring Nintendo. In the past, Microsoft approached Nintendo with a merger proposal, but the idea was met with amusement and rejection. Despite this, Spencer believes that Nintendo needs to recognize that their future lies beyond their proprietary hardware.
The outcome of Microsoft’s legal battle with the Federal Trade Commission will determine the status of their acquisition of Activision Blizzard, worth $69 billion. The FTC has filed a lawsuit against the merger, claiming that it could have negative implications for competition in the gaming industry.
Overall, Spencer’s interest in acquiring Nintendo highlights Microsoft’s ongoing efforts to establish a stronger foothold in the gaming market. While the specific details and future plans are unclear, the pursuit of a potential merger with Nintendo demonstrates Microsoft’s ambitions in the gaming industry.
Defintions:
– Phil Spencer: Microsoft Gaming chief responsible for the company’s gaming strategy and acquisitions.
– Nintendo: Japanese gaming company known for iconic franchises, such as Super Mario and The Legend of Zelda.
– Microsoft: American technology company specializing in software, hardware, and gaming.
Sources:
– The Verge: https://www.theverge.com/2023/3/1/22953423/microsoft-gaming-phil-spencer-letter-nintendo-acquisition
– Bloomberg: https://www.bloomberg.com/news/articles/2021-11-19/inside-story-of-how-xbox-empire-was-built-by-bill-gates-and-the-xmen
