Mergers and acquisitions have been the talk of the town since Microsoft completed a $7.5 billion deal with Bethesda last year, so what’s Nintendo’s approach to acquisitions moving forward?
In a press conference following the company’s full-year earnings results earlier this week, president Shuntaro Furukawa touched on Nintendo’s ¥1 trillion ($9.2 billion) cash reserves and said any potential acquisitions in the future would likely be in response to “rapidly advancing” tech innovation.
Here’s his comment in full (Nikkei via VGC):
“We need to secure cash reserves to ensure financial stability, but if we need to respond to rapidly advancing technological innovation, we may acquire companies that possess the technology”
Furukawa previously explained how Nintendo doesn’t intend to “bl indly acquire companies” as it does not believe it will necessarily improve the value of entertainment the company provides.
Nintendo’s most recent acquisition was actually at the start of this year – when it acquired the Canadian developer, Next Level Games (aka the team responsible for Luigi’s Mansion 3
The reasoning behind this according to Furukawa, was because Next Level had already been a long-time development partner of Nintendo, and making it a subsidiary would further improve the quality and speed of development.
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