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Forums - Nintendo Discussion - Can Nintendo Investors make NIntendo acquire a studio?

I'd rather have them hire and make new teams not just buy IPs. They have so many franchises stuck in dirt already no need to pay to get new ones.



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JWeinCom said:
Also lets remember, Microsoft has 300 billion or so in assets. Nintendo has 18.7 billion or so. Buying a company like Bethesda would mean spending nearly half the value of their company. That's a rather huge risk to take. They could like... maybe afford Capcom at best.

Yeah Nintendo while certainly not being strap for cash and making a ton of money, wouldn't be afford to what MS just did and at best it would of been merger of both companies similar to Bandai and Namco, Koei and Tecmo, or Squaresoft and Enix rather Nintendo buying Bethesda.

Hell Sony's market cap is pretty close to Nintendo's, so I am not even sure if they could have made a move like this either.



Isn’t there some sort of anti-trust law in Japan that affects any company from buying another?
Nintendo is doing well so far with the Switch.
They’re cultivating new graduates to be part of EPD, Monolith Soft is expanding, etc.
It’ll take months (maybe years) to see all of this come into fruition.
Plus, Nintendo goes by their own philosophy and studios that are under their umbrella (or are closely affiliated with them) are going to follow suit.
If a developer doesn’t follow Nintendo’s philosophies and culture, what use can they be if Nintendo owns them? Not to mention that a developer is just that...a developer. If the people that worked on the IPs are not there..it’s not the same. Didn’t some of the main people at Rare leave said company by the time Microsoft bought them?



animegaming said:
JWeinCom said:
Also lets remember, Microsoft has 300 billion or so in assets. Nintendo has 18.7 billion or so. Buying a company like Bethesda would mean spending nearly half the value of their company. That's a rather huge risk to take. They could like... maybe afford Capcom at best.

Yeah Nintendo while certainly not being strap for cash and making a ton of money, wouldn't be afford to what MS just did and at best it would of been merger of both companies similar to Bandai and Namco, Koei and Tecmo, or Squaresoft and Enix rather Nintendo buying Bethesda.

Hell Sony's market cap is pretty close to Nintendo's, so I am not even sure if they could have made a move like this either.

Well... Nintendo could. It's not like they'd go out of business if they it didn't work out, but taking that big of a gamble would probably make stockholders antsy, and if it didn't work out, there'd be major structural changes at the company. Whereas with Microsoft, they it probably won't even be the most significant thing in the company by a long shot. Sony on the other hand probably couldn't in any realistic sense.

Sony's market cap is I think something like 30 billion above Nintendo's... But that's largely based on predictions for the future.

Sony has a lot more assets than Nintendo does. Like... A LOT. But a lot of that is not in short term assets.

In terms of short term assets (cash or stuff that can become cash quickly), Nintendo has about 15 billion. Sony has about 54 billion.

But while Nintendo is basically debt free, Sony is not. They have about 46 billion in short term liabilities (debt that needs to be paid soonish). 

So... If Nintendo paid 7.5 billion for Bethesda, they'd still just be 7.5 billion dollars poorer. They'd still have enough money to do what they need to do. If Sony did the same, they'd be be left pretty strapped. They'd still be able to pay whatever they needed to in the near term, but they'd only have about 500,000,000 left to launch the PS5, fund development, pay life insurance, and whatever else they do as a company. They wouldn't have much of a cushion to fall back on if something went wrong, and they'd be in debt as a company if it didn't work out, which is generally not a good thing. Especially since Sony's been doing a good job digging themselves out of a hole recently, I don't think they'd do that.



There’s no need for Nintendo to buy other studios. Microsoft is literally playing catch up because they lack compelling software/exclusives for their platform. Nintendo first party team and partners have been solid since the dawn of time lol.

Here’s the deal. Nintendo is currently in the process of expanding their ips to other media. (films/TVs and theme parks). Nintendo already has a portfolio of iconic characters and games. The next step is to expand not in video games but elsewhere.
Sony and Microsoft will follow suit in the future just like they did with internal studios and directs lol.



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https://www.tweaktown.com/news/73918/nintendo-has-3-8-million-shares-in-bandai-namco-worth-186/index.html

Nintendo invests not buys. They have 4 million shares in Bandai Namco. I'd be fine if they invested in Platinum or other close partners. Just not outright buy.



Bite my shiny metal cockpit!

Nintendo doesn't need to, honestly. Their IPs are incredibly strong, pretty much nothing is on par with those. Just look at the performance of the MK8 port or Animal Crossing. They are massive. Nintendo is doing it's best when they don't follow trends, but they do their own thing. I think they should continue with this strategy.



Vote the Mayor for Mayor!

I can see Nintendo acquiring studios, but not publishing companies.

Monolithsoft and Nintendo was a unique situation thanks largely to long-time friendship between members of the studio and Nintendo’s Shinji Hatano. Hatano was the point guy with Square, and was also largely responsible for repairing relations with them after the Yamauchi caused disaster.

Hatano remained friends with members of the Monolithsoft team, and remained close with them on a business level because he was also the point guy with Namco - he had a very good eye for talent, as he also became acquainted with the Soul Caliber team and was responsible for bringing the deal with Nintendo together.

Monolithsoft became unhappy with after a change in leadership at Namco brought new business goal directions that really put a strain on their creativity. Hatano told Monolithsoft to keep creating their unique games. Then Monolithsoft broke up with Namco and married into the Nintendo dynasty.



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JWeinCom said:

animegaming said:

Yeah Nintendo while certainly not being strap for cash and making a ton of money, wouldn't be afford to what MS just did and at best it would of been merger of both companies similar to Bandai and Namco, Koei and Tecmo, or Squaresoft and Enix rather Nintendo buying Bethesda.

Hell Sony's market cap is pretty close to Nintendo's, so I am not even sure if they could have made a move like this either.

Well... Nintendo could. It's not like they'd go out of business if they it didn't work out, but taking that big of a gamble would probably make stockholders antsy, and if it didn't work out, there'd be major structural changes at the company. Whereas with Microsoft, they it probably won't even be the most significant thing in the company by a long shot. Sony on the other hand probably couldn't in any realistic sense.

Sony's market cap is I think something like 30 billion above Nintendo's... But that's largely based on predictions for the future.

Sony has a lot more assets than Nintendo does. Like... A LOT. But a lot of that is not in short term assets.

In terms of short term assets (cash or stuff that can become cash quickly), Nintendo has about 15 billion. Sony has about 54 billion.

But while Nintendo is basically debt free, Sony is not. They have about 46 billion in short term liabilities (debt that needs to be paid soonish). 

So... If Nintendo paid 7.5 billion for Bethesda, they'd still just be 7.5 billion dollars poorer. They'd still have enough money to do what they need to do. If Sony did the same, they'd be be left pretty strapped. They'd still be able to pay whatever they needed to in the near term, but they'd only have about 500,000,000 left to launch the PS5, fund development, pay life insurance, and whatever else they do as a company. They wouldn't have much of a cushion to fall back on if something went wrong, and they'd be in debt as a company if it didn't work out, which is generally not a good thing. Especially since Sony's been doing a good job digging themselves out of a hole recently, I don't think they'd do that.

If you don't eat your reserves it comes down to your capacity to borrow, so Sony and Nintendo would be fine plus market cap isn't the be all and end all of a company's worth , the market now tends to downgrade what it sees as conglomerates and they are quite often capped at way less value than what the the sum of their parts and profitability would suggest, that's why Sony now is valued at nearly a third of what it was when  valued at 200 billion, and analysts say that conglomerate stock downgrading is why despite a turn around that has produced record profits over the S200 billion version Sony's market cap isn't being met with the same type of rise that other stocks show.

Last edited by mjk45 - on 22 September 2020

No, they can't.

Investors didn't succeed with their continuous suggestion of Nintendo should make games for mobile either. The investors' idea was that Nintendo should make Virtual Console available on smart devices, along with new original games that were like Nintendo's handheld games. Nintendo kept insisting that such a move would only hurt Nintendo's core business in the long run, hence why they were not going to do it. While Nintendo did eventually end up making games for smartphones, their approach isn't what investors had asked of them.

The same goes for the internet gaming community who had asked the same of Nintendo as investors. But what Nintendo actually ended up doing is not what people understand as Nintendo going third party, because all the desirable Nintendo content remained exclusively on Nintendo consoles.

Back to the topic of studio acquisitions, Nintendo's standard answer to such inquiries is that there's no sense in buying up a studio when its employees at large wouldn't want to work for Nintendo. If Nintendo bought up such a studio, it would only be a matter of time until the studio bled dry of its original talent because the employees would resign over time. In other words, the part of a studio that Nintendo sees the value in is not the name or reputation of the studio, but the people behind it.



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