Nintendo acquired SRD Co. Ltd
Nintendo is the next video game company to get into the acquisition game, buying SRD Co. Ltd., a studio it has worked closely with over the years.
The video game industry has been going through an exciting time lately, with several massive acquisitions underway. Among recent trade deals, Microsoft acquired Activision Blizzard, while Sony bought Bungie. However, it looks like the news is far from over as nintendo just made a notable purchase of its own.
Recently, Nintendo had announced its intention to grow its assets. This decision follows the continued success of the Nintendo Switch in the video game market. Despite being released in 2017, the Japanese video game company revealed that it has continued to earn a substantial profit from sales of the system. As a result, it was investing $880 million in game development, along with another $440 million in non-gaming entertainment software. While most of these efforts were aimed at growing the business internally, she recently decided to bring a long-time partner under her umbrella.
In a February 24 announcement, it was revealed that Nintendo had acquired SRD Co. LTD. This news came via a statement from Nintendo. According to the company, the acquisition was made to “strengthen SRD’s management base.” Additionally, he said it would “secure the availability of software development resources for Nintendo.” By doing so, the company hoped to improve the efficiency of future development. Additionally, the statement said the acquisition was expected to close on April 1, after approval. It should be mentioned that the price of this business deal has not been announced.
While this is a notable acquisition for Nintendo, it shouldn’t shock gamers too much. Over the past 40 years, SRD has worked closely with the gaming juggernaut on a number of properties. Some of the franchises he has been instrumental in developing include The Legend of Zelda and Super Mario. On top of that, he was even involved in the making of the original donkey kong. More recently, he has been associated with the development of Garag Game Buildere, released last year.
While Nintendo doesn’t regularly engage in acquisitions or mergers, this isn’t the first time the Japanese video game company has acquired another entity. Last year it bought Next Level Games. As with SRD, this was a big deal as the Canada-based company had previously worked on a number of popular Nintendo properties, such as Luigi’s mansion 3 and the Mario Strikers series.
It will be interesting to see what the future holds for Nintendo moving forward. With this new asset under its belt, time will tell if it will allow it to create even finer games in the future.
MORE: PlayStation Should Leverage Bungie Acquisition For PS Plus
Source: Nintendo, VGC
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