Just months after the recent clash between the Federal Trade Commission (FTC) and Microsoft over its acquisition of Activision, revealing internal emails have come to light revealing the industry giant's intentions to acquire Nintendo.
Although the acquisition never materialized, the revelation of this bold plan continues to spark conversation and speculation in the entertainment industry, offering a unique insight into Microsoft's strategies and ambitions in the industry.
Where did the news that Microsoft is planning to buy Nintendo come from?
The leaked email, dated August 2020, is from Phil Spencer, then head of Xbox at Microsoft. In it, Spencer shares his views on what he called an "unprecedented corporate consolidation" and a strategy that could mark a "turning point in his career."
Spencer expressed in the email that Nintendo represents Microsoft's crown jewel in the world of video games , and today, video games are the most direct channel to gain relevance among consumers.
In the same email, he suggests that there was a chance that a Nintendo acquisition could become a reality, stating that if any American company had a realistic opportunity to acquire Nintendo, Microsoft would be in the best position to do so.
Why hasn't Microsoft bought Nintendo?
Apparently it's not because he doesn't want to, but because the conditions haven't been presented.
Nintendo is in a solid financial position, and its board is happy about that, so it hasn't been pushing to further increase its market share or stock valuation.
This circumstance poses a dilemma for Microsoft, as an acquisition could be construed as a "hostile action," which could jeopardize its long-term vision for the gaming industry.
Recall that, although Microsoft recently achieved a significant victory in its fight to acquire Activision Blizzard, the Federal Trade Commission (FTC) has not been pleased with this acquisition, nor with Judge Jacqueline Scott Corley's decision to approve the purchase, according to them due to the economic harm it could be doing to small entertainment industries.
But the revelations do not end here.
Microsoft reportedly has plans to acquire other key companies in the industry, such as Valve and Warner Bros. There was also speculation about an acquisition of TikTok, but it appears no agreement could be reached.
What is worth highlighting is that the leaked email from Phil Spencer has shed light on the intricacies of Microsoft's business strategies and its vision for consolidation in the entertainment industry.
Microsoft's attempt to acquire Nintendo became a fascinating tale of the complexities and challenges faced by companies seeking expansion and consolidation in a competitive market like the video game market.
But as long as companies like Nintendo remain financially healthy, they are sure to hold firm in their position in the video game market, giving giants like Microsoft a run for their money.
And you, have you already tried Nintendo Switch Standard or Nintendo Switch Oled ?