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Nintendo would never buy the xbox division.... Maybe a few odd developers like Rare, but I don't think they would take the shooter devs... Nintendo doesn't like all the violence american games are famous for. They are willing to let it on their console, but they aren't willing to make it themselves.

Secondly, Xbox doesn't sell because of their great first party games. They sell because they have the best third party options. Third parties love the xbox because their shooters sell like crazy on it, and it wasn't as terrible to develop for as the PS3... On top of that Microsoft had an amazing online experience, something Nintendo wants no part of giving their disabling of the messaging system for the Wii U.

At best Nintendo might buy Rare. However seeing that all the core developers left Rare and are now working on other projects, I think that idea has gone to hell,

Nintendo doesn't like purchasing software developers. They are very stingy about that. Chance in hell Nintendo would want to purchase a failing business that has the polar opposite moral goals that Nintendo has.