Recent legal documents inadvertently made public have shed light on Microsoft’s gaming strategy and its relationship with Nintendo. Among the revelations was a desire expressed by Xbox boss Phil Spencer to acquire Nintendo, a claim that took most by surprise.
In an email exchange from 2020, Spencer conveyed to a colleague, “I totally agree that Nintendo is THE prime asset for us in gaming.” He also expressed confidence that Microsoft’s board was entirely behind the idea of such an acquisition if it were to become feasible. Spencer’s aspirations didn’t stop at mere discussions. He conveyed that integrating one of the industry’s biggest companies would not only be a significant milestone in his career but also beneficial for both the said parties. His perspective was rooted in his belief that Nintendo’s long-term future lay outside of their own hardware ecosystem. Nevertheless, Spencer has since clarified that much has changed since those discussions, highlighting that plans and ideas from the past aren’t necessarily reflective of the company’s current or future direction.
However, Nintendo of America’s president, Doug Bowser, has since responded to the leaks in a more conciliatory tone, emphasizing Nintendo’s ongoing relationship with Microsoft.
In an interview with Inverse, Bowser repeatedly highlighted the strong partnership between the two gaming giants. He pointed to the presence of games like Minecraft on the Nintendo Switch and the inclusion of Banjo Kazooie in Super Smash Bros. Ultimate as tangible proof of this collaborative spirit. Bowser’s sentiments weren’t just in reaction to the leaked emails but rather a broader affirmation of the bond between the two companies.
Further solidifying the bond, Microsoft and Nintendo recently entered into a binding 10-year agreement to bring Call of Duty to a Nintendo platform in the future. This development came in the wake of Microsoft’s massive $69 billion mega-acquisition of Activision Blizzard. These collaborative efforts between the two giants indicate a shared vision and mutual benefit rather than adversarial competition.
While the leaked emails stirred controversy, Bowser’s response to acquisition trends in the gaming industry was more philosophical. With over 16 years in the industry, he has observed a consistent pattern of studio acquisitions. However, he also points out that this trend is balanced by the emergence of new, creative studios every year. These new entities range from indie developers to major AAA studios. Bowser sees this dynamism as a testament to the evolving nature of the gaming industry, ultimately benefiting everyone.
Still, one can’t help but wonder about Phil Spencer’s words in the emails. Is it possible Microsoft still would like to buy Nintendo? If so, would it happen?
Ultimately, it’s pivotal to understand that, while Microsoft and Nintendo are technically competitors in the video game industry, they operate in totally different spaces. In particular, Nintendo is and has always focused on its home country, Japan. On the other hand, Microsoft, despite its most recent efforts, virtually has zero footprint in the Land of the Rising Sun. To that end, Sony is more of a competitor to Nintendo than Microsoft. Besides, Microsoft hosts most of Nintendo’s online infrastructure, which it’s paid handsomely to do so.
Speaking of Nintendo, the world’s oldest gaming company is enjoying a massive year following the success of both The Legend of Zelda: Tears of the Kingdom and Super Mario Bros. Wonder. The Nintendo Switch is on track to exceed all the expectations sales-wise and it doesn’t look like it will stop selling well anytime soon. It’ll be interesting to see what it’s planning to do next year when it presumably prepares to release its next console, which reportedly performs just as well as the PlayStation 4 and Xbox One if not better, depending on who you ask.
