Nintendo May Consider Merger/Acquisition Deals to Improve Its Fortunes

Nintendo May Consider Merger/Acquisition Deals to Improve Its Fortunes

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According to president Satoru Iwata, Nintendo may consider merging with or purchasing other companies to boost its profits going forward.

Whatever criticisms people might level at Nintendo, on some level you have to respect the individual way that it approaches things. With Sony and Microsoft, you can generally see the two competing and responding to each other. In the case of Nintendo however, it often feels like the company just does its own thing. Unfortunately, as its recent tribulations have demonstrated, that doesn't always lead to success.

That in mind, company president Satoru Iwata has revealed that Nintendo may consider casting aside some of its independent nature to improve its profits with acquisitions and mergers in the future. "If there is something that others are doing that we feel would leverage Nintendo's strength, we will incorporate that into our business," said Iwata during an investor presentation. "I will not deny the possibility of an M&A deal to implement this business."

That being the case, Iwata made a point of affirming that going such a route "is not Nintendo's usual way" and that it would, in turn, "depend on the situation." He also made a point of stressing that the company is "[considering] many options" to improve its fortunes and that it doesn't have "specific plans" just yet. Nonetheless, the prospect of Nintendo buying or merging with other companies is one that could, in the least, provide some interesting possibilities for the future. If nothing else, it would be a sure sign that things are changing for the house that Mario built.

Source: Nintendo

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Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

How about they 'consider' the option of releasing the XBLA version of Goldeneye on both Nintendo and Microsoft systems, and then lie back and roll in the cash?

Acquiring a company with the expertise to build their online networks would be a good start.

Imagine a world where bobby kotick merges activision-blizzard with nintendo and gains control over the house of mario

You think nintendo rehashes now?

*shivers*

Sheo_Dagana:
Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

No reason for Capcom to sell really. They seem to be doing pretty good being a multiplatform publisher.

How are they going to survive just by publishing for the Wii U?

Squilookle:
How about they 'consider' the option of releasing the XBLA version of Goldeneye on both Nintendo and Microsoft systems, and then lie back and roll in the cash?

You mean the actually-by-todays-standard-kinda-below-average FPS from the N64 that got remade for the Wii with Daniel Craig? That Golden Eye?

Sheo_Dagana:
Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

Capcom wouldn't sell. They make enough money to not need to sell. It's wishful thinking to think that a company that's been financially successful for the past few years would let itself be bought by a company having troubles.

It'd be like Sega Sammy selling Sega, there's no point.

RandV80:
Acquiring a company with the expertise to build their online networks would be a good start.

This. As the Pokemon Bank debacle continues, it's clear Nintendo needs to step up it's online capacities, buying something to manage them would be a worthwhile investment. Oh and maybe a company to make some more games for the WiiU too :-P

They should merge with Activision; it sounds crazy but hear me out. Nintendo take so long to put out their games we joke about passing them on to our children, Activision vomits them out so hard and fast it kills franchises.

Perhaps somewhere in the middle these two could find enlightenment, and we could get what we want too.

Salad Is Murder:
They should merge with Activision; it sounds crazy but hear me out. Nintendo take so long to put out their games we joke about passing them on to our children, Activision vomits them out so hard and fast it kills franchises.

Perhaps somewhere in the middle these two could find enlightenment, and we could get what we want too.

And Nintendo could take Activisions old dead (good) franchises and revive them.
Crash Team Racing meats Mario Kart
A Crash Bandicoot platformer.
A Zelda inspired Spyro game.

But then again, we could see Activision release Mario and Zelda on a yearly basis, they could make Metroid just another CoD and Pikmin could be come the next Starcraft split in 3 games or even worse, mandatory online with a cash shop.

Yeah, no. Thanks on the offer, but this could be one of the worst things in video game history.

EDIT:
Wasn't this news already posted like a week ago?

JoJo:

RandV80:
Acquiring a company with the expertise to build their online networks would be a good start.

This. As the Pokemon Bank debacle continues, it's clear Nintendo needs to step up it's online capacities, buying something to manage them would be a worthwhile investment. Oh and maybe a company to make some more games for the WiiU too :-P

Pokemon bank is out in Australia UK and PAL territories now, but I completely agree close to 2 months off the planned date is ridiculous.

BiH-Kira:
...this could be one of the worst things in video game history.

Or, and give this some thought, could this be one of the best things in video game history?

lachlan4567:

JoJo:

RandV80:
Acquiring a company with the expertise to build their online networks would be a good start.

This. As the Pokemon Bank debacle continues, it's clear Nintendo needs to step up it's online capacities, buying something to manage them would be a worthwhile investment. Oh and maybe a company to make some more games for the WiiU too :-P

Pokemon bank is out in Australia UK and PAL territories now, but I completely agree close to 2 months off the planned date is ridiculous.

Wat...

*Checks Bulbapedia*

OMGOMGOMG! YES, FINALLY! Gah, and it just had to come out when I'm about to leave for a job centre meeting, still I'll have fun with it this afternoon. Downloading now in-case they pull it again ;-)

gizmo2300:

Squilookle:
How about they 'consider' the option of releasing the XBLA version of Goldeneye on both Nintendo and Microsoft systems, and then lie back and roll in the cash?

You mean the actually-by-todays-standard-kinda-below-average FPS from the N64 that got remade for the Wii with Daniel Craig? That Golden Eye?

Nope- I'm talking about the still-better-then-most-of-the-crap-pedalled-today FPS from the N64 that got remade for XBLA to 90% completion at Rare, and then canned because Activision, Microsoft and Nintendo couldn't sort their financial three-way out.

That Goldeneye.

deadish:

Sheo_Dagana:
Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

No reason for Capcom to sell really. They seem to be doing pretty good being a multiplatform publisher.

How are they going to survive just by publishing for the Wii U?

You do know that Capcom's financials have been pretty dire recently, right?

I mean, seriously, they have less than $200 million in the bank right now.

Am I losing my mind or hasn't this already been reported?

Kmadden2004:

deadish:

Sheo_Dagana:
Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

No reason for Capcom to sell really. They seem to be doing pretty good being a multiplatform publisher.

How are they going to survive just by publishing for the Wii U?

You do know that Capcom's financials have been pretty dire recently, right?

I mean, seriously, they have less than $200 million in the bank right now.

Capcom would be pretty damn close to going under without Monster Hunter.

deadish:

Sheo_Dagana:
Interesting - I wonder who they'll try to acquire? The possibilities of them buying up someone like Capcom are quite intriguing to think about, even if it's not likely. I'll admit I'm not in a position to know who could buy whom but I'd like to see Nintendo acquire someone that's been in the industry for a while that already has a fairly solid partnership with them. But who knows how things will go.

For now, it's just pretty fascinating news that Nintendo is willing to branch out.

No reason for Capcom to sell really. They seem to be doing pretty good being a multiplatform publisher.

How are they going to survive just by publishing for the Wii U?

3 words. Street Fighter. Exclusive. And with Nintendo's not-admirable-but-more-consumer-friendly-than-Capcom-practices? That is a powerful firecracker right there

Kmadden2004:

You do know that Capcom's financials have been pretty dire recently, right?

I mean, seriously, they have less than $200 million in the bank right now.

Teaming with Nintendo and restricting their market to the Wii U will help how?

gizmo2300:

3 words. Street Fighter. Exclusive. And with Nintendo's not-admirable-but-more-consumer-friendly-than-Capcom-practices? That is a powerful firecracker right there

Sure it would be great for Nintendo ... but what is in it for Capcom? That's what I'm asking.

Dendio:
Imagine a world where bobby kotick merges activision-blizzard with nintendo and gains control over the house of mario

You think nintendo rehashes now?

*shivers*

As much crap as Nintendo and Activision get for rehashes they've yet to produce a game like final fantasy all of the Bravest or Medal of Honor War flightier. COD was made to Kill medal of honor and it did.

BiH-Kira:

And Nintendo could take Activisions old dead (good) franchises and revive them.
Crash Team Racing meats Mario Kart
A Crash Bandicoot platformer.
A Zelda inspired Spyro game.

But then again, we could see Activision release Mario and Zelda on a yearly basis, they could make Metroid just another CoD and Pikmin could be come the next Starcraft split in 3 games or even worse, mandatory online with a cash shop.

Yeah, no. Thanks on the offer, but this could be one of the worst things in video game history.

EDIT:
Wasn't this news already posted like a week ago?

yes, we had the EXACT SAME NEWS a week ago. And of course people were playing investor fanfiction like always. We have no real idea what this actually means, so guessing seems as good a system as any.

deadish:

Kmadden2004:

You do know that Capcom's financials have been pretty dire recently, right?

I mean, seriously, they have less than $200 million in the bank right now.

Teaming with Nintendo and restricting their market to the Wii U will help how?

gizmo2300:

3 words. Street Fighter. Exclusive. And with Nintendo's not-admirable-but-more-consumer-friendly-than-Capcom-practices? That is a powerful firecracker right there

Sure it would be great for Nintendo ... but what is in it for Capcom? That's what I'm asking.

What's in for Capcom?
Lot of money from Nintendo. Creative and development help/input from Nintendo's dev teams. Access to Nintendo IP's.

If they merge/get acquired by Nintendo, everything that benefits Nintendo benefits them as well.

deadish:

Kmadden2004:

You do know that Capcom's financials have been pretty dire recently, right?

I mean, seriously, they have less than $200 million in the bank right now.

Teaming with Nintendo and restricting their market to the Wii U will help how?

gizmo2300:

3 words. Street Fighter. Exclusive. And with Nintendo's not-admirable-but-more-consumer-friendly-than-Capcom-practices? That is a powerful firecracker right there

Sure it would be great for Nintendo ... but what is in it for Capcom? That's what I'm asking.

Never said it would, but the notion that everything is just fine and dandy with Capcom if they keep on their current track isn't necessarily accurate, and it wouldn't be surprising to me if they would at least entertain the notion of a buyout from one of the big three.

But, hypothetically speaking, both companies (Capcom and Nintendo) could feasibly gain quite a bit from such a partnership. Capcom would gain some financial security from Nintendo's coffers (and won't have to dedicate massive budgets it soon may not be able to afford on PS4 and XB1 game development), and Nintendo gets what could potentially be a system seller of a studio on its books. It's not difficult to imagine some partnership where Capcom essentially becomes Nintendo's "mature" developer focused purely on making games for the "core" audience, while Nintendo focuses on making its family-friendly Mario and Zelda titles. What's more, with Nintendo handling the publishing, they'll no doubt put they foot down on Capcom's more shady practices (like on-disc DLC) and clean up the studio's image in the eyes of the consumer. Not saying such a merger wouldn't be risky, but from that perspective, it's kind of win-win for both companies.

Like I said, that's hypothetically speaking. I'm not saying it's ever going to happen, just that - on paper, at least - it's something that could potentially work.

BiH-Kira:

What's in for Capcom?
Lot of money from Nintendo. Creative and development help/input from Nintendo's dev teams. Access to Nintendo IP's.

If they merge/get acquired by Nintendo, everything that benefits Nintendo benefits them as well.

So, it's really just money ...

Not sure it's worth it. Money you can borrow from a bank/issue bonds or shares. Not to mention Nintendo isn't exactly do that hot themselves. If Nintendo sinks after the merge, they will sink with them.

IMHO the combined entity will bleed even more cash. Capcom being bought out more or less just means their games become exclusive so massive loss of income there. Nintendo may push a few more Wii Us with the exclusives, but so far it hasn't exactly help them much - they already have Monster Hunter which one of Capcom's biggest franchises. I don't see selling a few more Wii Us is going to cover the cost of acquiring Capcom and Capcom's operational cost.

Kmadden2004:

Never said it would, but the notion that everything is just fine and dandy with Capcom if they keep on their current track isn't necessarily accurate, and it wouldn't be surprising to me if they would at least entertain the notion of a buyout from one of the big three.

But, hypothetically speaking, both companies (Capcom and Nintendo) could feasibly gain quite a bit from such a partnership. Capcom would gain some financial security from Nintendo's coffers (and won't have to dedicate massive budgets it soon may not be able to afford on PS4 and XB1 game development), and Nintendo gets what could potentially be a system seller of a studio on its books. It's not difficult to imagine some partnership where Capcom essentially becomes Nintendo's "mature" developer focused purely on making games for the "core" audience, while Nintendo focuses on making its family-friendly Mario and Zelda titles. What's more, with Nintendo handling the publishing, they'll no doubt put they foot down on Capcom's more shady practices (like on-disc DLC) and clean up the studio's image in the eyes of the consumer. Not saying such a merger wouldn't be risky, but from that perspective, it's kind of win-win for both companies.

Like I said, that's hypothetically speaking. I'm not saying it's ever going to happen, just that - on paper, at least - it's something that could potentially work.

They can go Nintendo only without a merge. They haven't. Obviously it isn't worth doing so. Capcom will make even less money if they go Nintendo only and will bleed money even harder. Don't see how that is going to be beneficial to the merged entity, I heavily doubt selling a few more Wii Us is going to cover the loss of the PS and xbox markets.

deadish:

Kmadden2004:

Never said it would, but the notion that everything is just fine and dandy with Capcom if they keep on their current track isn't necessarily accurate, and it wouldn't be surprising to me if they would at least entertain the notion of a buyout from one of the big three.

But, hypothetically speaking, both companies (Capcom and Nintendo) could feasibly gain quite a bit from such a partnership. Capcom would gain some financial security from Nintendo's coffers (and won't have to dedicate massive budgets it soon may not be able to afford on PS4 and XB1 game development), and Nintendo gets what could potentially be a system seller of a studio on its books. It's not difficult to imagine some partnership where Capcom essentially becomes Nintendo's "mature" developer focused purely on making games for the "core" audience, while Nintendo focuses on making its family-friendly Mario and Zelda titles. What's more, with Nintendo handling the publishing, they'll no doubt put they foot down on Capcom's more shady practices (like on-disc DLC) and clean up the studio's image in the eyes of the consumer. Not saying such a merger wouldn't be risky, but from that perspective, it's kind of win-win for both companies.

Like I said, that's hypothetically speaking. I'm not saying it's ever going to happen, just that - on paper, at least - it's something that could potentially work.

They can go Nintendo only without a merge. They haven't. Obviously it isn't worth doing so. Capcom will make even less money if they go Nintendo only and will bleed money even harder. Don't see how that is going to be beneficial to the merged entity, I heavily doubt selling a few more Wii Us is going to cover the loss of the PS and xbox markets.

Like I said, I wasn't saying it was something that would, or even should, happen. I was just spitting out hypotheticals.

 

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