Could Microsoft buy Nintendo? It’s an idea people throw around as a joke in the context of the video game industry reaching peak consolidation. But could that actually happen? Thanks to the enormous Xbox document leak this week, it turns out that some of the highest-ranking decision-makers at Xbox have mapped out what an acquisition might look like. Microsoft’s board of directors, including CEO Satya Nadella, has seen a full writeup of the particulars of a Microsoft buyout of Nintendo. But don’t get too excited about Master Chief and Mario sharing an owner anytime soon. Experts say Microsoft was merely doing its due diligence and that a Microsoft takeover of Nintendo is not much more than a pipe dream–though as with all things, you never know what might happen in the future.
What Did Phil Spencer Say?
In an email dated August 6, 2020, Spencer told Microsoft marketing executives Takeshi Numoto and Chris Capossela that Nintendo is “THE prime asset” for Microsoft in gaming. Spencer went on to say he has already had “numerous conversations” with Nintendo’s leadership team about a “tighter collaboration” between the two companies, and he believes that if any US company could convince Nintendo to sell, it would be Microsoft. But in the same email, Spencer said Nintendo would be unlikely to sell to Microsoft, at least at this point in time.
Spencer noted that Nintendo is “sitting on a big pile of cash” thanks in part to the breakout success of the Nintendo Switch. Indeed, when Spencer sent this email, Nintendo had more than $12 billion in cash on hand, a number that has grown higher since then. Spencer did note, however, that a former Microsoft board of directors member, Mason Morfit with the investment firm ValueAct, has been acquiring Nintendo shares, and said this could “create opportunities for us.” Exactly what these opportunities might be isn’t immediately clear, however.