"If they offer Rockstar 50 million dollars for Grand Theft Auto, Microsoft will offer them 100 million. It’s a dead end."
I disagree with this statement.
They should go into a bidding war, as they know microsoft will outbid them. In other words a good way to make Micrososft pay more then they would if Nintendo did not throw in a shil bid to get the price up.
This is the quickest way to eliminate your comp, force them to spend more unecessarily.