Nintendo will consider buying other companies to respond to technological innovations.
The President of Nintendo made it clear that they do not want to buy companies blindly, but will consider doing so if they lag behind when it comes to technological innovation.
The holdings and acquisitions between large video game companies, to reinforce their ranks of first party studios or with a strategic aim in order to improve production, are very common. And in general, users tend to respond with joy to these movements, as if they were “transfers”. But Nintendo doesn’t see it that way.
At the beginning of the year they announced that they were buying Next Level Games, the North American studio responsible for hits like Luigi’s Mansion 3. It was their first acquisition in a decade. But it is not something that is going to set a precedent: the president of Nintendo, Shuntaro Furukawa, recognized that in Nintendo are not interested in buying companies blindly because they need more development resources: “We don’t believe that simply expanding the scale of our business will really improve the value of the entertainment that Nintendo offers.”
After releasing Nintendo’s fiscal year financial results this week, Furukawa admitted that future acquisitions would depend on technological innovations. “We need to secure money reserves to have financial stability, but if we need to respond quickly to technological innovations and advances, we may buy companies that have that technology.”
It seems that Nintendo is not so keen on expanding its ranks from in-house development studios, especially with the console’s high sales pace, and its good gaming performance. More than buying studios, Nintendo would look for companies that can help it in technology.
Nintendo has always been characterized by very creative innovations in terms of gaming experiences. Nintendo Switch nailed the home console / portability hybrid, although its latest consoles have lagged behind in other respects, such as graphics power and online services. Recently, Nintendo changed its online service system on Nintendo Switch, although it is not clear that this will produce any notable changes for the user.
Numerous reports speak that the upcoming Nintendo Switch redesign will feature 4K graphics and DLSS technology (key to improve graphic quality). When it comes to online services, Nintendo could explore using the cloud for streaming games, something that more and more companies are exploring. For now, he prefers not to open his doors to services from other companies, such as xCloud. Will you be working on your own platform?
Source: Nikkei via VGC