Why Microsoft won’t buy Nintendo Next
Microsoft’s purchase of Activision Blizzard has led to speculation that it might buy Nintendo next, but that would be highly unlikely.
Microsoft will acquire Activision Blizzard in a surprise purchase, and rumors have begun to speculate that Xbox’s parent company may also make an offer to buy Nintendo. Although Microsoft’s purchase raised some eyebrows, the company is unlikely to offer to buy Nintendo. Microsoft’s Activision Blizzard deal will end in 2023, and it’s sent shockwaves through the gaming market, raising questions about the wider availability of Activision Blizzard’s games and whether Microsoft will continue to buy more companies. The software giant previously released ZeniMax Media in 2021, which led to Bethesda becoming an Xbox-exclusive game studio, and it’s possible more acquisitions are on the way.
One of the main factors behind Microsoft’s takeover of Activision Blizzard is the company’s valuation. Although the company has released some of the biggest titles in gaming, Activision Blizzard has recently experienced a torrent of bad press exposing allegations of a highly toxic workplace. Between its waning public reputation and the vast library of games now owned by Microsoft, Activision Blizzard seemed poised to strike a deal with one of the biggest tech companies in the world.
Nintendo, however, is in a league of its own. Nintendo is estimated to be the fourth largest video game company, behind Sony, Tencent, and Microsoft, based on their market capitalization values. Nintendo is unique, however, in that it is the only one of these four companies that solely focuses on video games as its primary source of revenue. The company produces Switch consoles and holds exclusive rights to some of the most iconic names in gaming, such as mario, Zelda, and metroid. With so many valuable assets to its name, it seems unlikely that Nintendo would be open to a future acquisition.
Nintendo is currently too valuable to sell
Nintendo, as a brand, is currently at its peak. The release of the new OLED Switch in October 2021 was a huge success, and a new foldable Nintendo Switch model could be next in line. From high-level sequels to exclusive games, like The Legend of Zelda: Breath of the Wild 2, Mario Kart 9, and Pokemon Legends: Arceus, are almost guaranteed to dominate the sales charts once they are released. Essentially, with so many reasons for Nintendo to be a beloved brand, now and in the near future, it would be extremely difficult for Microsoft – or any other company, for that matter – to negotiate a purchase deal with Nintendo.
With Nintendo essentially secure from a takeover, Microsoft will continue to push forward with its acquisition of Activision Blizzard. Microsoft will inherit the company’s allegedly abusive and discriminatory work environment, but could use the deal to change direction and improve working conditions at Activision Blizzard. Microsoft’s Activision Blizzard deal could mean more exclusives for Xbox, like World of Warcraft. Waiting for, nintendo will continue to thrive, almost like his own private animal crossing Isle.
Next: Why Microsoft should (and shouldn’t) have bought Activision Blizzard
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