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S.T.A.G.E. said:
At this point I dont think Nintendo could afford Epic. Epic is multi-billion dollar corporation now and is growing.

The main problem behind buying Epic probably would be that those guys are heavily focussed on the cutting edge in graphics tech, so I imagine most of the key people would quit after being bought by Nintendo simply because they couldn't do what they are interested in anymore. While the existing engine and that might be worth quite a lot the real capital/worth Epic has is the skills of it's top people.