Should Nintendo buy third party support?

[LG[Infinite]]

Large companies like SquareEnix aren't just made up of people (the talent), there are processes and cultures at work within the company as well. Nintendo's success stems not only from its talent, but also from its culture. Its culture is the reason why the Wii got off the ground, the reason games are sent back to the drawing board if they don't meet standards, the reason why games like Mario are still made and continue to improve even when the genres they represent (e.g. platformers) are largely dead elsewhere.

If Nintendo were to buy SquareEnix they'd not only get the talent, but the culture as well. SquareEnix has a particular way of doing things and it does them very, very well but it is not Nintendo's way. Any attempt to change the culture of SquareEnix would not only be time consuming and expensive, it might cause the talent to flee and could end up eviscerating the company.

On the other hand, Nintendo has purchased smaller companies. These are ideal for Nintendo. Not only are they still "hungry" for success and eager to prove themselves, their cultures often match Nintendo's more closely. Even more importantly, Nintendo can give them something that they need: money, time, and resources to develop something great. These are things that large companies by SquareEnix already have, but which smaller companies like Retro did not have.

If you ask me, Nintendo may well purchase some gaming companies, but these are likely to be small companies who have in the past made quality products given their limited resources. These are the companies that Nintendo can most easily incorporate into its structure and which can most benefit from Nintendo's resources.