Microsoft’s Potential Acquisition of Nintendo Revealed in Leaked Emails: What This Means for Gamers
In a surprising turn of events, leaked emails have revealed that Microsoft executives were discussing the potential acquisition of Nintendo. This revelation has sent shockwaves through the gaming community, as the idea of Microsoft, a giant in the tech industry, acquiring Nintendo, a beloved gaming company, seems far-fetched.
The leaked emails, dating from late 2019 through 2022, provide us with unique insight into Microsoft’s strategy for its video game division. The discussions about Nintendo took place in August 2020, just months after the immense success of Nintendo’s hit game Animal Crossing: New Horizons during the COVID-19 pandemic. Microsoft executive Takeshi Numoto highlighted the value of Nintendo’s rich set of franchises, stating that they could help Microsoft strengthen its content for one of its major goals: cloud gaming.
Microsoft’s executive vice president of gaming and head of the Xbox brand, Phil Spencer, responded by calling Nintendo THE prime asset for us in Gaming and revealed that there had been numerous conversations about the prospective acquisition. However, he also acknowledged the challenges that lay ahead, particularly Nintendo’s obstinate board of directors. Spencer mentioned that former Microsoft board member, Mason Morfit, had been buying up Nintendo stock, which could potentially create more opportunities for Microsoft.
Despite the enthusiasm from Microsoft’s side, Spencer admitted that a near-term mutually agreeable merger was unlikely without a catalyst. He emphasized that a hostile action would not be a good move and that they were playing the long game.
The leaked emails also confirmed rumors from earlier this summer that Microsoft had targeted another Japanese video game company, Sega. In a strategy deck circulated by Spencer in November 2020, he outlined how Sega’s assets appealed to Microsoft and how they could help accelerate Xbox Game Pass both on and off-console. However, a Sega executive later denied any rumors of a sale in an interview.
While these acquisition targets never materialized, the emails shed light on Microsoft’s longstanding desire to acquire Activision Blizzard, which they eventually proposed a $69-billion acquisition for in January 2022. The emails discussed the success of Activision Blizzard’s games, such as the mobile game Call of Duty reaching 100 million downloads in its first week and Call of Duty: Modern Warfare generating $600 million in its first weekend.
The emails also revealed internal discussions about Activision Blizzard’s exclusive partnership with Google for gaming cloud and streaming rights. Microsoft CEO Satya Nadella inquired about how Microsoft could better appeal to Activision Blizzard using its Azure cloud system. Spencer highlighted the advantages of Microsoft’s cloud gaming system, compensating for their lack of mobile gaming infrastructure at the time.
In addition to the potential acquisitions, the leaked emails highlighted concerns within Microsoft about their game lineup for Xbox Game Pass and platform marketing. Spencer expressed worry that the 2023 lineup was sparse and emphasized the need for more content.
After the emails were made public, Microsoft’s CEO, Satya Nadella, addressed the issue in a memo to staff, acknowledging the disappointment caused by the leak but stating that their plans have evolved since the emails were written. He assured employees that the real plans would be shared when they were ready.
The leaked emails have undoubtedly sparked intrigue and speculation within the gaming community. However, it is important to note that these discussions took place over a year ago, and Microsoft’s plans may have changed since then. Only time will tell if any of these potential acquisitions come to fruition and how they will ultimately impact the gaming landscape.
