Microsoft wanted to acquire Nintendo, leaked email reveals
We might have seen Mario on Xbox if Microsoft's Phil Spencer had his way
Microsoft’s CEO of gaming Phil Spencer had plans to acquire Nintendo in 2020, or at least floated the idea to his colleagues.
In an unredacted court document, which is part of a massive Xbox leak that revealed a new Xbox Series X redesign, new controller, and Microsoft’s plans for next-gen, Spencer said that Nintendo would make a prime asset when he was asked why the company wasn’t trying to acquire the Kyoto-based company.
In a reply to Microsoft’s executive vice president and chief commercial officer Takeshi Numoto, Spencer said: “Takeshi, I totally agree that Nintendo is THE prime asset for us in Gaming and today Gaming is our most likely path to consumer relevance.
➡️ The Shortcut Skinny: Microsoft buying Nintendo
🤔 Microsoft considered buying Nintendo back in 2020
📧 A leaked email revealed that Microsoft believes Nintendo would be a prime asset
⏱️ But the company needs Nintendo to realize its future “exists off its own hardware”
👩⚖️ It’s part of a massive Xbox leak thanks to the FTC
“I’ve had numerous conversations with the LT [leadership team] of Nintendo about tighter collaboration and feel like if any US company would have a chance with Nintendo we are probably in the best position.
“The unfortunate (or fortunate for Nintendo) situation is that Nintendo is sitting on a big pile of cash, they have a BoD [Board of Directors] that until recently has not pushed for further increases in market growth or stock appreciation.”
The idea of Microsoft acquiring Nintendo seems unthinkable, especially as the Japanese company has gone from strength to strength after launching the Switch in 2017. The recent success of Nintendo’s other ventures, such as The Super Mario Bros. Movie and Super Nintendo World at Universal Studios, has only solidified the company’s strong position in the market.
Spencer admitted that Microsoft would have to play “the long game” when it came to a potential merger, as a hostile takeover wouldn’t be wise.
“Without that catalyst I don’t see an angle to a near term mutually agreeable merger of Nintendo and MS [Microsoft],” Spencer explained, “and I don’t think a hostile action would be a good move so we’re playing the long game. But our BoD has seen the full writeup on Nintendo (and Valve) and they are fully supportive on either if opportunity arises as am I.”
Spencer also stated that he believes Nintendo’s future “exists off for their own hardware” but that it’s just “taking a long time for Nintendo to see that”.
The conversation took place before Microsoft’s eventual acquisition of Bethesda but also revealed Microsoft was interested in acquiring Warner Bros. Interactive. However, they were dissuaded from the WB deal due to a lack of IP ownership. We now know that Microsoft shifted its focus to acquiring Activision Blizzard instead.
Third time’s the charm?
This isn’t the first time that Microsoft has thought about acquiring Nintendo. It was revealed that Microsoft approached Nintendo about a possible buyout over 20 years ago, but was laughed at by Nintendo’s executives at the time.
Kevin Bachus, a director for third-party relations on the Xbox project, told Bloomberg that the company attempted to buy developers in order to ensure there were games available for its first console.
“Steve [Ballmer, chief executive officer of Microsoft from 2000 to 2014] made us go meet with Nintendo to see if they would consider being acquired”, Bachus recalls.
“They just laughed their asses off. Like, imagine an hour of somebody just laughing at you. That was kind of how that meeting went.”
Something tells me that Nintendo would laugh even louder if Microsoft were to approach them about an acquisition today, as the company’s console and software business is in rude health. The Nintendo Switch 2 is also expected to be released next year and could be another monumental success.