Nintendo considers merging with or acquiring other companies to improve business

President Satoru Iwata says "I will not deny the possibility" of completing mergers and acquisitions as a means to return to profitability.

Gaming juggernaut Nintendo has confirmed that it is open to the idea of completing mergers and acquisitions (M&As) as a means to help the company return to profitability. President Satoru Iwata made the announcement during a recent investor presentation, which was translated into English and made available through the company's website today.

"I will not deny the possibility of an M&A deal to implement this business," Iwata said. One example of a successful entertainment industry M&A deal was Disney's purchase of beloved animation studio Pixar in 2006.

His comments came in response to an investor question regarding the possibility of Nintendo establishing partnerships or acquiring other companies to boost its own bottom line. Nintendo typically blazes its own trail, so an M&A deal sounds somewhat out of place, Iwata admitted.

"If there is something that others are doing that we feel would leverage Nintendo’s strength, we will incorporate that into our business," Iwata said. "Of course, incorporating a business model in the same way as other companies is not Nintendo’s usual way, so it would depend on the situation."

Unfortunately, Iwata said he was not ready to share any details regarding its future plans for mergers and/or acquisitions. "At the moment, there is nothing that we can share with you regarding M&A deals," he said.

In addition, Iwata said Nintendo is prepared to consider "many options" with regards to licensing its stable of franchises, which includes big-name properties like Mario, Zelda, and Donkey Kong. The executive explained that these types of licensing deals do not negatively impact Nintendo's longstanding hardware-software business model and so the company has no problem moving forward with such arrangements.

"Licensing Mario in digital areas would mean that there is a possibility that Mario will appear in stamps or wallpapers for smartphones, and I will not rule out this kind of business," Iwata said. "This is because we believe that this would not be in direct competition with Nintendo’s business and would not threaten our video game platform business which integrates hardware and software."

The Nintendo investor who asked the question brought up the possibility of Nintendo opening a Nintendo-based theme park as a means to generate more revenue. Iwata didn't directly answer the question, but said, "We will flexibly consider options including those that Nintendo has not done in the past. What we will permit will depend on the matter, client, and conditions."

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Discussion

368 comments
Aaronp2k
Aaronp2k

If I were nintendo, I would try and merge with valve. I doubt gabe newell would go for it but it would certainly be worth a shot. Who knows, maybe gabe newell grew up playing nintendo and would jump at the chance to work with a part of his childhood.

OMGMrTea
OMGMrTea

I really don't like this.. I agree that they have to do something to get back into shape, but selling your soul through merging or any kind of crap like this, is not gonna help.. I mean we all saw what happened to Square and Enix after they merged, for example..

jemoedr
jemoedr

Not denying the possibility of merging is something totally different from considering it. If they consider it, they're looking for companies to merge with, now they might just be open to the idea.


That said, they do need a wider range of games. So acquiring a studio or 2, 3 would be a good idea. Next time they also might want to stale the release of their new console so they have more launch titles.

fillup0
fillup0

Nintendo needs more franchises with the kind of tone and themes as Metroid. Metroid proves that they aren't soley a kids company and they should make more franchises like that.

geminontraveler
geminontraveler

i can only imagine what a merger with Sony would look like. MS would not stand a chance.

jinzo9988
jinzo9988

Nintendo needs another Rare... or two.  I don't think Nintendo on their own can keep up with the demand of releases from their notable franchises.  Retro Studios seems to be doing a great job so far.  It's a shame their name isn't out there more when you look at their roster of games.  They're pretty much the new-age Rare.  Another studio to handle more of Nintendo's franchises wouldn't hurt.  Get Retro to do another Metroid Prime and then hand another studio F-Zero whilst the big N works on the next Zelda game.

Henninger
Henninger

Nintendo do what you gotta do. I'll still support you. I grew up with you & I'll keep supporting you until that sad day when you guys bow out. Mario is still the king in gaming. You proved that with New Super Mario Bros. Wii. I have faith in you guys.

AsKo25
AsKo25

yeah ok nintendo we know u are going to buy platinum :>

cybrcatter
cybrcatter

Big N can start a turnaround by removing Iwata from the helm. The company needs a serious reality check, and it's not going to happen with someone at the top whose head is ten feet in the sand. Diluting top-notch IPs with cheap gimmicks is not a solution, and acquisitions are merely a bandaid that do not address the fundamental problems within the company. 

LanceCypher
LanceCypher

So, in other words, "Nintendo is a business, and will use whatever strategy necessary to remain powerful and make money." All companies would be willing to merge and acquire others if it meant making money. This is neither a surprise nor a hint at later plans, just a statement of what is fairly standard business practice: Make more money.

gameroutlawzz
gameroutlawzz

This industry is truly doomed and I completely lost hope and gaming and those said ''gamer'' pretenders who suck at anything that focuses on amazing gameplay mechanics and only want more of their generic cinematic streamlined TRASH that focuses on telling fucking stories with shallow tacked on gameplay, forced a.i partners for more fucking dialogues and plot-holes and whatever the fuck else that shouldnt be the main focus whenmaking a fucking video GAME. Nintendo always did and still make the most amazing,fun,diverse,complete,polished and bug-free games without relying on all of the hollywood gimmick now plaguing this industry. People arent gamers anymore theyre fucking story-fiend cinephiles seeking for emotions out of fictional characters to fill their empty abd worthless lives while their under-developped brain cant stand genius gameplay that requires logic,patience, trial and error ,knowledge and dexterity skills. NO devs still make true games like N does and yet theyre the one struggling in a industry that should focus on making,once again, VIDEO GAMES not fucking interactive movies with dull,cliche stories and hand holding cause all te des want is for the next fucking cut-scene to jump in and their story to un-fold. Truly a sad state this industry is in. Dark souls2 for ps3 and my Wii U are deff the last games/platform I will own cause I truly have no interest in whats left over if nintendo sells out.

choco1989
choco1989

JUST DO SOMETHING SIMILAR LIKE SONY AND MICROSOFT DOING 

choco1989
choco1989

JUST MAKE A STRONG SYSTEM MORE MATURE AND I BET YALL MAKE A LOT OF MONEY AND STOP ALL THAT GIMMICK SH.. ALSO MAKE SOME GOOD RPG,SHOOTING AND SPORT GAMES 

Evil_Sidekick
Evil_Sidekick

Makes sense to buy new studios, more even when Platinum Games already said they would love to be Nintendo 2nd party.

Guess they will buy them after all....

And i'm saying Nintendo will buy Sega since 2007.


If they do buy Sega, i hope they only buy Sega Japan as i don't see them having any interest in getting Football Manager, Company of Heroes and Total War Ips. So, i hope Sega remains, only that it would become a western publisher (much like Atari is french now).

Tao_and_Zen
Tao_and_Zen

"Licensing Mario in digital areas would mean that there is a possibility that Mario will appear in stamps or wallpapers for smartphones"

Licensing Mario for wallpapers for smartphones? Really? No wonder Nintendo is going belly-up. With an outdated business model and this idiot in charge, it is inevitable.

TAracer
TAracer

The Wii was a massive gimmick.  The gimmick is over.  The average person doesnt even know the Wii U is a new system in and of itself.  And how many times does Nintendo expect people to buy a whole new system to play the same rotation of games?  I'm a huge Nintendo fan, but they can be reduced to nothing more than a 3rd Party developer in the future.

BLKCrystilMage
BLKCrystilMage

Dear lord, I never actually expected Nintendo to make an announcement like this. I mean I knew their business model was too short-sighted and narrowly-focused with the Wii U, but I didn't think they were in THIS much trouble. I suppose time will tell whether or not this actually comes to pass.

Kerry12424
Kerry12424

Release Pokemon Blue/Red to the smartphone market. Instant money.

masterfortesque
masterfortesque

Flashback from the 60s involving Nintendo Hotels and Nintendo Noodles... Are you sure you want to go that way Iwata?

RossRichard
RossRichard

They need to merge with Capcom and use some of those IPs that made Capcom a juggernaut 20 years ago that they don't use anymore. Instead of putting out a Megaman, a Ghouls and Ghosts, a new Breath of Fire or a Resident Evil that is actually scary they put out BS like Remember Me and Resident Evil COD.

Of course, if Nintendo would actually make a great console that isn't based around a gimmick, they wouldn't need to merge with anyone.

PlatinumPaladin
PlatinumPaladin

A theme park?! That would be no small undertaking, and strikes me as a wild childhood ambition of the investor who suggested it.

I hope Nintendo aren't going into panic mode. They seem to be throwing every idea at the walls and waiting for something to stick. That said, M&As could yield some interesting results. I can't even imagine some of the crazy ideas the creative folks at Nintendo could come up with if they had access to some of the ingenious services and tech out there currently. Better they do it now while they've still got plenty of cash in the bank.

Bowser05
Bowser05

This could be good. This could be bad. Let's see if Nintendo can make the right choices this time around. I love my Wii U. I love my Wii. I loved my GCN and N64. Frankly speaking though...the Wii was the only major success out of all of those. They can't hope to make a successful console based solely on their own top tier titles. No matter how good these titles are, they won't make enough money on their own. If other developers aren't convinced of the kind of fun they can make on the Nintendo consoles...then everything is meaningless. I'd hate to see Nintendo go under, but I will support them in whatever venture they choose (assuming it's not something immoral of course).

bigruss51
bigruss51

It's great that their thinking about the future but what are they going to do for the fans who own a WiiU now.

sambucca
sambucca

Hmm, sounds like history repeating to me. Anyone remember Sega's ill fated merger with Bandai. It never materialised, but still. When companies start talking about mergers its not a good sign, despite Nintendo's wealth and all...

Joedgabe
Joedgabe

I want metroid.... Sell the Damn IP if you're not gonna do anything at all with it!

Karchy
Karchy

Bring back big chunky cartridges!!

kohle36
kohle36

Dear Nintendo: Buy a networking company whose dedicated job is to actually build you a proper unified account system, and ramp up releases of classic games, including Gamecube on WiiU and SNES / GBA on 3DS. You're welcome.

Nafzger
Nafzger

They need to become a third-party software developer, or solely focus on the handheld market. I hate handhelds, but that's where their strongest games have been for the last 15+ years.

pug987
pug987

@jemoedr  

They could also finance 3rd party studios to make new franchise and work out a deal that they'll be Nintendo-platform exclusive. Especially franchises targeting older audiences like they did with Bayonetta. 

toffifee
toffifee

@gameroutlawzz  I also wonder how you don't see that they haven't really released that many games worth playing on Wii U. People can't afford to throw away money on a console for one or two great games and Nintendo has screwed the pooch with Wii U.


It's also amazing how condescending you are. So only games that YOU like are real games? People complain about how they release a new Assassin's Creed every year, but at least that game has improved. Zelda is the same damn thing it has been since Ocarina and Mario has improved slightly.

gameroutlawzz
gameroutlawzz

Wonderful 101 is such an amazing game and yet people dont even dare to try it an would rather bash about the lack of 3rd party titles and new IPs. See how narrow-minded and clueless this gen of gamers are. Games like these are far more mature thanyour generic stream lined bloody trash tht any blind-folded monkey could achieve while

games

like W101 require SKILLS even on the easiest game mode.

gameroutlawzz
gameroutlawzz

you sound like a fucktard 12 yr old who first of all shouldstay far far away from those said ''mature'' games and would actually suck at anything that is gameplay-focused like what Nintendo games are. overall you suck at games and youre a cancer to this indsutry like 90% of the braindead fuckwits now plaguing this hobby.

VargasUniverse
VargasUniverse

@RossRichard  That would be like a dream come true. Just imagine the number of copies sold by Resident Evil going exclusively to Nintendo platforms or a brand new Megaman game for WiiU or 3DS. I'm sure that kind of games will help the company.

firstclassgamer
firstclassgamer

@Joedgabe  I only think Nintendo deserves such a creative IP any other company will turn it into COD

Nev3rtime
Nev3rtime

@Joedgabe  People complain about them milking franchise and when there hasn't been a metroid for a few years there's panic. Odds are there's one being made right now.

coment04
coment04

@Nafzger  


EA is doing shit look at their loses....and they are a 3rd party multiplat company.....


and lastly good thing yer not in the industry the last thing we wan't is to leave sony/ms alone to gain monopoly and we all play shitty boring cod etc...

Grenadeh
Grenadeh

@Nafzger  Have been saying this for months because they are the only logical solutions. They excel - that much is obvious considering they dominate the handheld market - at handhelds, and they do make good games. They should cut their losses and focus on what is working because the Wii U isn't.

geminontraveler
geminontraveler

@shinjuki  wait... you actually LIKE where nintendo is at right now? they are literally one foot in the coffin. once you start talking mergers and acquisitions.... its practically over. that type of move is like the last resort of companies.


there is nothing to like about nintendo right now. the WiiU was a complete misfire. Iwata needs to go, and so does Reggie. they are both extremely bad for the company. the big N needs to have a new console out the door in the next 2 years to compete with the PS4 and XB1, and it needs to have a Zelda or Metroid game either at release, or within the first 6 months. that right there is the only thing that is going to save that company.

Evil_Sidekick
Evil_Sidekick

@shinjuki Fine by me, in fact my idea of Nintendo this gen is that they want to be seen as more than just "kid friendly", that's why one of the launch titles was Zombie U, a more mature game easily found on the Xbox, Playstation or PC

TAracer
TAracer

@shinjuki

Clearly you are a Nintento fan boy doing your best to defend them on the boards here.  Ive been playing, buying and supporting Nintendo since 1988.  Bottom line is Nintendo abondoned the hardcore gaming community with the Wii and now expect us come running back to them when they need us since nursing homes buying the Wii U.  The games you mention aren't enough to carry them and I'm getting sick of buying a new system for the latest Mario.  It is what it is, the Wii U is stuggling and they have no one to blame but themselves.  They pushed away 3rd party developers throughout the years, now they are in danger of becoming one themselves.

Bowser05
Bowser05

@Nev3rtime @Joedgabe  Regardless of what people think...Metroid: Other M WAS a Metroid game and it wasn't too long ago. Getting another Metroid this year or next year would be a perfect time. We'll see.

coment04
coment04

@Grenadeh


going third party is not a logical solution....check EA's troubles....


as well did you ask the kids on ps/xbox brand if they want nintendo's games?


fucking armchair ''economic''analyst fucking clueless yer all are....

colbster
colbster

@Grenadeh @Nafzger  I like Super Mario 3D World on my wii a lot!

toffifee
toffifee

@shinjuki  Forgot about Majora's Mask. That one was brilliant. Exciting new weapons? Same weapons (almost) that you use in the same way. The story is almost never anything to cheer for. Skyward Sword's overworld was a joke. You could fly around, but not really a lot to do. The next Zelda has been promised to rock our world. I believe it when I see it. Skyward Sword is the only Zelda game that I haven't enjoyed though.


"How not every single gamer has invested in a Wii U knowing that Nintendo will bring a TON of awesome new endlessly fun adventures". This. WILL BRING. They haven't brung it yet so no dice. I won't buy a machine on the chance of a great game coming out in two years.

Evil_Sidekick
Evil_Sidekick

@shinjuki I don't have a Wii U or a 3DS, but i agree. I have a hard time understanding so-called "gamers" that can only see one kind of games as valid. Quality comes in all shapes and sizes.

Evil_Sidekick
Evil_Sidekick

@shinjuki I don't have a Wii U or a 3DS, but i agree. I have a hard time understanding "gamers" that can only see one kind of games as valid. Quality comes in all shapes and sizes.

Grenadeh
Grenadeh

@colbster  I'm sure you and the other 4 million people who bought a WiiU do like it. It looks good. But it's not enough. I think for Nintendo to get people back they need to release a good mario, a good mario kart, smash bros, star fox, zelda, metroid, donkey kong and other crap. Nintendo does have good franchises but the unfortunate reality is like every other console, the multiplats and third party exclusives are what make or break the console. That is why SNES melted face, not because it had 4 mario games.