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How Microsoft Tried To Buy Nintendo

An anonymous reader submits: "A new book, Opening the Xbox: Inside Microsoft's Plan to Unleash an Entertainment Revolution discusses Microsoft's plans to buy Nintendo for $25 billion in late 1999. By January 2000 however, talks dissolved and each company went their seperate way. Makes you wonder how the home entertainment industry would be different if they had gone through with it. Stories are at Gamers and Cube Europe."

88 of 286 comments (clear)

  1. What about sega? by CmdrTaco+(editor) · · Score: 2, Insightful
    This brings up an interesting point. Sure, Microsoft has always been known to gobble up smaller companies and absorb the market share that they previously held. But with the antitrust trial, would it really have been a good idea to buy Microsoft?

    If Microsoft really wanted to be immediately successful in the console market, they should've bought Sega late last year. The Dreamcast was a great system, and with the Microsoft marketing machine behind it and a potential sequel, there would be almost guaranteed success. Plus, Sega could be bought for a whole lot less money (especially now).

    1. Re:What about sega? by DaedalusLogic · · Score: 2

      The Gamecube Europe article mentions that they tried, and then threw their weight into trying to by Nintendo next. Seems a little out of order. I think that MS is doing an OK job with the XBox personally. A merger with either would have serious potential to have turned the tables on Sony. Did anyone think about what influence the Sony empire has on market penetration due to the fact that every retailer wants to carry Sony TV's Audio... etc. That's how they make their console a success... They have the power to make every VAR buy them. MS of course does too... but the less physcial products you ship to retailers the less sway you have.

    2. Re:What about sega? by Tremul · · Score: 2, Funny

      I disagree with the point about buying Sega. Why would Microsoft buy a company that has a history of lying to its customers, putting out faulty products which they don't support for very long and then throwing a brand new one on you once you realize how terrible the old version was. Oh wait...

      --

      "Can't sleep. Clowns will eat me"
    3. Re:What about sega? by azosx · · Score: 2, Informative
      Microsoft wanted Nintendo to drop its GameCube console and get behind the Xbox.


      As the gamers.com article states, Microsoft wasn't looking to purchase the GameCube's technology when making an offer for Nintendo, they just wanted the name and licenses (Mario, Zelda, Pokemon). Despite the opinion of many gamers that the Dreamcast was a great system, the fact was Sega had been in second and third place for the last six years behind Nintendo and Sony. Microsoft didn't want that kind of recognition with their Xbox. They wanted the only heavy hitter at the time that could potentially smoke Sony.

    4. Re:What about sega? by ronfar · · Score: 2
      IE?

      Dreamcast uses Planetweb for surfing.

      --
      All the creatures will die, And all the things will be broken. That's the law of samurai. (Jubai, 1605)
  2. Re:I don't think much would have changed.... by Ibjr · · Score: 2, Funny

    But it would be ironic, because the bastard child spawn from such a deal would run on the PPC chip :)

  3. Crashes by SiIverFish · · Score: 2, Funny

    Now when your gamecube crashes, there is no blue screen of death, just Maro popping up saying "Mama-mea, iv'e crashed AGAIN"

  4. I can see it now... by Anonymous Coward · · Score: 2, Funny

    MSNES

  5. Nintendo probably tried to take advantage of MS by edwdig · · Score: 3, Interesting

    The way I see the situation, Nintendo probably tried to pull something similar to what MS did back when they entered the mouse market. (MS got into negotiations with Logitech, learned all about their manufacturing process, then broke off talks) Nintendo probably just saw the opportunity to learn a lot about their competition, and entertained MS just enough to get all the info they could from them. Once they did they, they broke off talks. Nintendo is so set on their business model that they won't try anything new. Nintendo of America would love to be more aggressive against Sony, but they have to answer to the Japan branch, who is quite content where they are because they make a hell of a lot more money than the games branch of Sony does. If it's not broken, don't fix it is pretty much their motto, so why would they ever even considering selling out to MS ?

    1. Re:Nintendo probably tried to take advantage of MS by magicsquid · · Score: 2, Interesting

      Sometimes history is bound to repeat itself. If you recall, something similar happened back in the days prior to the PlayStation. Nintendo and Sony met to cooperate on a CDRom add-on for the SNES. Nintendo broke off talks after Sony had already announced the new drive at E3. Sony went on to create the PlayStation out of what it had learned from Nintendo. Isn't it also possible that exactly the opposite of what you suggest happened... that Microsoft got into talks with Nintendo to learn what it could about the industry because it already new it was going to launch it's own console? Microsoft could gain a tremendous amount of information from the company that has been in the console market longer than any other, Nintendo.

      --


      "Chances of RHIC-induced Armageddon are exceedingly rare, but... you never know." - MIT Physicist Bob Jaffe
    2. Re:Nintendo probably tried to take advantage of MS by Graymalkin · · Score: 5, Interesting

      Nintendo and Sony parted ways not because Sony debuted their technology as I recall. Nintendo halfway through the project decided to go with Phillips and their CD-i technology leaving Sony with a bunch of money invested into their CD system. Sony kept developing it because Ken Kutaragi bet his career on it. He thought a game console would be what Sony needed to spurn some demand for their products. Nintendo and Sony got back together about two years later but the deal broke because Sony wanted to do a stand alone system and Nintendo still wanted a add-on for the SNES.

      Sony then formed their CEE division with Ken Kutaragi at the helm and launched the PSX. It became ultra popular because they managed to get the big wigs like Capcom and Konami to develop native games as well as port Arcade games to it. It whomped the shit out of the Saturn and Nintendo dropped their CD-ROM add-on plans and hooked up with SGI. I remember at the time there was a good deal of confusion as to what the fuck Nintendo was doing. You were never sure if they were making a stand alone 32-bit console or a add-on for the SNES.

      Microsoft I think was in the same position as Sony was in 1992, they had an initiative to get into the game console market but wanted someone more experienced to go in with. What I think people miss is Sony is the Microsoft of Japan. Career minded folks in Japan's electronics industry don't badmouth Sony. With the PSX they were entering into a industry they had no experience in. It was only through learning from Nintendo and Kutaragi's incessant board room bowing and scraping that the PSX saw the light of day.

      --
      I'm a loner Dottie, a Rebel.
    3. Re:Nintendo probably tried to take advantage of MS by NanoGator · · Score: 2

      The talks broke down because Sony was a little too greedy about branding and royalties. The basic plot is that it would have mutated into a Sony device using Nintendo's fan base.

      MS was probably looking to do the same thing. Had Nintendo been bought by MS, that would have seriously made me cautious about investing in Nintendo products anymore. Nintendo's an awesome company that *knows* how to make games. If MS bought them (and changed them....) I'd have serious doubts about the future of the game market. Still, I'd much prefer MS buying Nintendo than Sony.

      --
      "Derp de derp."
  6. Nintendo franchised reimagined by Microsoft... by Navius+Eurisko · · Score: 5, Funny

    Super Mario Bros: "Hey, kids, itsa Mario! I wanna taka some time from da game, to tell you about the dangers of competition in da OS market. If da 9 US states of Bowser have their way, competition will enter da OS market and Yoshi willa die! Mama Mia!"

    Pokemon: "Picachoo just evolved into the most stable, user friendly, Pokemon ever: XPachoo!"

    Legend of Zelda: "Link, Hyrule can only be saved from the evil free office suite spread by Ganon by gathering the three pieces of Mircosoft Office to form the triad!"

    1. Re:Nintendo franchised reimagined by Microsoft... by macshit · · Score: 3, Funny

      Better yet, a version of Super Smash Brothers featuring Clippy! Seeing how much people complain about him, there are probably millions of people willing to buy the system if they'd get get a chance to beat the little bastard to a pulp, again, and again, and again.

      [Maybe that's the killer app the xbox needs ... they could start a whole subgenre of `torture clippy' games ... `Clippy Tied to a Post Knife Party'... ]

      --
      We live, as we dream -- alone....
    2. Re:Nintendo franchised reimagined by Microsoft... by ink · · Score: 2

      That would be the one thing that would get me to buy an X-Box; I'd love to pit that Office Dog against Einstein or the Clippy. They could have special key combinations to unlock their "productivity" powers: Clippy could open a can of printer-spooling whoop-ass by sucking his opponent into the printing animation of his.

      --
      The wheel is turning, but the hamster is dead.
  7. Re:Typical M$ by Eil · · Score: 2


    ... and I forgot to add that the last point there only serves to exemplify the issue that nearly all of Win2k's and WinXP's "innovations" have actually been done before, either in *NIX-land or other software. (And usually better.)

  8. Internationally.. by Anonymous Coward · · Score: 2, Insightful

    ..this would only have helped put MS ahead in the game. Outside of North America, XBox sales are weak (to say the least). It goes to reason, however, that with the Nintendo name behind the console (including the good hardware/game engineering that goes into Nintendo products) that the Japanese and European markets would have taken MS' offering a little more seriously.

  9. Other Codenames Considered.... by shr3k · · Score: 5, Funny

    The fact that the initial code name was Project Midway -- they don't want the Japanese people to know that because it will hurt their feelings."

    Well, it could have been worse. Project Hiroshima anyone? It will obliterate the competition!

    1. Re:Other Codenames Considered.... by AnimeFreak · · Score: 2

      Project Nagasaki would be the successor.

    2. Re:Other Codenames Considered.... by red_dragon · · Score: 2

      If they had named it Project Yamato, it'd have been a sinker...

      --
      In Soviet Russia, Jesus asks: "What Would You Do?"
    3. Re:Other Codenames Considered.... by Loligo · · Score: 2

      >Project Yamato

      As long as it included a wave-motion drive...

      -l

  10. Re:Typical M$ by JFMulder · · Score: 3, Interesting

    .. and you forget to put your foot in your mouth when you wrote this. Come on, of course Microsoft has copied Unix. How could they not!!! Do you accuse Saturn to rip off Ford because they're making cars. Ford has been there for a hundred years! You're right, Saturn are dirty bastards for trying to make a clone or a different version of car.

    Linux and UNIX groupies like you give the community a bad name.

    And what was wrong with trying to buy Nintedo? It's not only a question on buying to beat everyone. This is a pretty normal move in the industry. If you have some ideas, but don't have all the expertise to go forward with them, why don't you make a alliance with another company, or buy the other company and integrate it with yours, so the product will be even better?

  11. Nintendo didn't need the money by Alien54 · · Score: 5, Interesting
    The GameCube Eurpoe Site had a short story on this earlier:

    www.cube-europe.com/news/10198973416591.html

    This sound bite is the best:

    When interviewing Nintendo's U.S president Minoru Arakawa, he let slip that Nintendo 'weren't sure what to think when Microsoft made the offer.'' He continued with the commments "I was surprised, we didn't need the money. I thought it was a joke."

    sums it up nicely for me

    --
    "It is a greater offense to steal men's labor, than their clothes"
    1. Re:Nintendo didn't need the money by 56ker · · Score: 2

      Yes - it does throw Microsoft's strategy into a tailspin when the company rejects their offer to be taken over. Then they go to plan B - offer a similar product for free at a vastly reduced price (or free) - force them out of business - then you have a monopoly!

    2. Re:Nintendo didn't need the money by 56ker · · Score: 2

      The bringing out for free refers to software eg bundling IE with Windows. They wouldn't give away hardware because it would be economic suicide!

    3. Re:Nintendo didn't need the money by NanoGator · · Score: 4, Insightful

      "Then they go to plan B - offer a similar product for free at a vastly reduced price (or free) - force them out of business - then you have a monopoly! "

      Harldy a winning strategy. If MS were to drop the price of the XBOX, they'd go DEEPER into the hole on each machine sold. As it is, it costs like $400 or $500 to build one of the machines. Nintendo, however, is either close to break even point, or even making a profit on their $200 machine.

      MS cannot legally undercut the price of the XBOX, it's called 'Dumping'. The FTC would strangle them over it. (In theory, so far the US gov't doesn't seem too wild about telling MS no to anything.) I vaguely remember Atari threatening to sue Sony over it when the Playstation was announced to be $200 (I think it was released at $300, though...) for similar reasons. (Anybody remember that?)

      Nintendo could easily afford to drop the price of the Gamecube even farther. It'd either be extremely bold or extremely stupid of MS to try to get into a price war with them. That's not MS's biggest problem though.

      XBOX just doesn't have the winning titles yet. There are some okay games for it, but they really need a Miyamoto on their side. One of the things that kind of drove me away from being a game player is the lack of imagination and thought being put into games. If MS were smart, they'd drag out every Miyamoto and RARE game ever made and devote a group to figuring out why they're fun. Then, they need to set up a division intended to make games like these. (not copy them, I mean continue the spirit of them.)

      MS would be smart to make better games, that'd be a far better strategy than trying to beat them at price. That is unless they start giving away XBOX's along with the purchase of Gateway PC's....

      --
      "Derp de derp."
    4. Re:Nintendo didn't need the money by 56ker · · Score: 2

      "Harldy a winning strategy. If MS were to drop the price of the XBOX, they'd go DEEPER into the hole on each machine sold." - yes but they know that even if they make a loss in the short term - selling more machines now will result in greater profits in the long term - and Microsoft aren't short of a bob or two - or are they looking to make a quick buck! "MS cannot legally undercut the price of the XBOX" - ha! They can sell it at whatever price they like - they've already reduced the price in the past few days by £100 in the U.K. - and in Europe, and in Australia!

    5. Re:Nintendo didn't need the money by I+didn't · · Score: 2, Funny
      XBOX just doesn't have the winning titles yet.

      They already have one...... called *Monopoly*.

    6. Re:Nintendo didn't need the money by NanoGator · · Score: 2

      Ooops... now that I think about it, I think you're right...

      Sorry for the misinfo!

      --
      "Derp de derp."
    7. Re:Nintendo didn't need the money by Guppy06 · · Score: 2

      "Harldy a winning strategy. If MS were to drop the price of the XBOX, they'd go DEEPER into the hole on each machine sold. As it is, it costs like $400 or $500 to build one of the machines. Nintendo, however, is either close to break even point, or even making a profit on their $200 machine."

      Even if Nintendo isn't at the break even point yet, remember that the GameCube is 66% of the price of the XBox, so dollar-for-dollar Nintendo gets more market penetration than XBox.

      "MS would be smart to make better games, that'd be a far better strategy than trying to beat them at price."

      Making better games is only part of it. You also need a large library in general to really make money. If you have a large library with many companies developing for you, you're more likely to find some real gems in that library.

    8. Re:Nintendo didn't need the money by NanoGator · · Score: 3, Insightful

      "Making better games is only part of it. You also need a large library in general to really make money. If you have a large library with many companies developing for you, you're more likely to find some real gems in that library.

      I agree, sort of at least. I think Nintendo has proven that's not an unbreakable law. The Nintendo 64 was creamed by Playstation in terms of how many games were available. Yet, the N64 still made Nintendo a good deal of cash that they aren't complaining about. They were #2 to Sony in terms of how many ppl have a PS vs. N64, but Nintendo still got a good dosage of cash. Why? Because Nintendo also made some killer games for the N64 that sold really well. (With some help from Pokemon for the Game Boy)

      Nintendo is in the unique situation where no matter how popular another console is, they still have an audience that'll follow them around. They'll still make oodles of money provided they keep their standards up.

      Sega was in that position to an extent, unfortunately they relied on rehasing Sonic and Virtua Fighter a little too much. (I don't care what anybody says, a Mario sequal is always incredibly different from it's predecessors. Sonic games were essentially an extension of previous games.) They had a loyal audience, but they blew it.

      Sony doesn't have that. Microsoft doesn't have that. Niether company does any interesting in-house games. That will hurt them in the long run. Nobody has any real reason to stick with Sony or MS. Final Fantasy 7 was a good reason to have a PS back in the 95 gaming era, but Sony no longer has that exclusive today. You'll be able to play an FF sequal on another platform before too long, but you'll never play a Mario game on Sony or XBOX.

      Consider that for a bit. Nintendo is likely to always be successful, even if they're #2 to somebody else. But the #1 place will always be up for grabs. It might have been Sony last time, but it could be anybody this time.

      --
      "Derp de derp."
    9. Re:Nintendo didn't need the money by cheinonen · · Score: 2

      Atari's complaints about the Playstation price (which were in an interview in Next Generation magazine a long time ago) dealt with the fact that the Playstation was originally around $400 in Japan before it came out in the US, and the US price was going to be $300. However, Sony redesigned the Japanese version (manufacturing techniques constantly improve on console, the Playstation 2 is on it's 5th revision already) and lowered the price in Japan to $300, which means it would no longer be dumping in the US. If the XBox was $100 everywhere in the world, they can sell it for that in the US. They can give it away if they want, just they can't give it away in the US and then sell it for $500 in Europe.

    10. Re:Nintendo didn't need the money by 56ker · · Score: 2

      All eyes are on Sony now to see if they'll lower the price of the PS2 now that it's the same price as the X-Box - both more expensive than the Gamecube and Gameboy Advance.

    11. Re:Nintendo didn't need the money by NanoGator · · Score: 2

      Correct me if I'm wrong, but the onus to develop games does not necessarily fall on Microsoft.

      Yes, you are wrong. As I stated in my previous post, MS's ability to create a stable market for future systems is based on keeping their existing market share and expanding it. The only way they can do that is games. If the games that were good on the XBOX aren't avaialble *and* better on their following system, there's little incentive to buy the next MS game machine. Why do you think Nintendo is still very strong, but Sega nearly collapsed? If MS doesn't have first party games to populate their system and nobody else's, what's to stop somebody else from coming in and beating them?

      "With a geForce3, PIII at seven hundred someodd MHz, and a very large hard drive, the XBox is the most powerful device on the market today"

      The truth of the matter is that the XBOX isn't decidedly more powerful than the GameCube. Developers have flat out said that the GC excels in some areas that the XBOX doesn't, and vice versa. You cannot look at a GC game and an XBOX game and know which system it is running on. The XBOX's processor is 700 mhz, and the GC's is 400. Is the XBOX's processor nearly twice as powerful as GC's? No. It's kind of like comparing a Mac processor to an Intel one. The Intel one has faster clock speed, but the Mac can still keep up.

      The GC, right now, is $199 and the XBOX is $299. There is not a 50% performance increase on the XBOX even though it's 50% more expensive. The hard drive is a nice feature, but so far it hasn't been used for anything that interesting. Though I may draw criticism for that comment, I see it right now as another thing on the machine that can break. It's a hell of a memory card, though.

      "the controllers (the odd shape fits a child's hand much easier than an adult's), "

      Okay, first off, DUH it's intended for the younger audience. Secondly, though your comment is basically correct, I as an adult have no troubles with the controller. Personally, I find it more preferable to the XBOX controller. However, this is a matter of taste.

      The GC is a very good game machine supported by a very good game company. The XBOX certainly has potential, but it needs games to reach that potential. MS does not have a Miyamoto making games for it. Most of the games on the XBOX today are either fighting or racing games. Where are the fun original games? Like or hate Nintendo style games, they are definitely more inspired. That is why Nintendo can defy the rules of game marketing.

      --
      "Derp de derp."
    12. Re:Nintendo didn't need the money by NanoGator · · Score: 2

      "Actually, I would refute this. I have seen games like Luigi's Mansion running on the Cube, and the fact of the matter is that the graphics are rather poor quality"

      You picked the worst graphic game on GC and compared it to the best graphic game on XBOX, heh. Why don't you go take a look at Rogue Squadron? That game is an excellent example of the power that GC houses. Frankly, I'd rather play Luigi's Mansion anyway. I'm thoroughly sick of running around killing monsters. Been there. Done that.

      "This page [xbox.com] has a list of every wonderful game being developed for the XBox, and most anyone will begin to drool when reading the page. I haven't seen games this good since Pong.

      Heh, I found this comment amusing. That's not a list of 'good games', it's a list of "Games in Development". As a matter of fact, that list is very similar to games in development for PS2 and GameCube. Very few, if any, of those games are XBOX exclusives. Know what that means? It means that the decision between buying an XBOX, PS2, or GC is decided by a gamble as to which system will provide you with the most games that you want.

      And no, I don't drool over them. I have enough experience with games on previous systems (PSONE, for example...) to know that nearly every one of those games will be mediochre at best. Derivitive, derivitive, Derivitive. If you're not running around shooting monsters, you're racing, fighting, or playing a sport. YAWN.

      Now, driving this post back into my original point, that decision will likely be based on potential power of the system, the features of the system, or the price of it. That could be in Microsoft's favor in this round, but all bets are off when the next generation of game systems come into being. If MS gets overly zealous like Sony did, their next system could very easily be inferior, power wise, to their competitors. The PS2 has a nasty bottleneck that automatically makes it's games noticably blurrier than any of their competitors' (including Dreamcast, out a year earlier...), lack of VRAM. They have to halve their vertical resolution and interpolate it back in order to have RAM for other things to do. Blurry blurry blurry.

      See my point now? There's very little keeping you interesting in buying the next MS machine that comes out. Now, if MS were to emulate Nintendo by creating their own in house games (note: These have to be AAA titles, not just the regurgitated crap most companies produce), then you have the comfort of knowing that MS's next system will carry over that tradition. Even if the other systems have games that you want, MS will still be making games that you'll likely be interested in.

      It is for this reason that Nintendo has a mobile audience, willing to absorb anything they produce. It's not because we're all idiots. I know that if Miyamoto makes a game, it'll be cool. I know that if RARE makes a game, it'll be cool. Back in the SNES days, if Square made a game, I know it'd be cool.

      --
      "Derp de derp."
  12. Who Microsoft SHOULD Buy by Rayonic · · Score: 5, Interesting

    Enix.

    You've heard of them, right? They put out that little Dragon Quest/Warrior series, the seventh of which is the all-time best selling game in Japan. Heck, there's even a Japanese law saying that Enix can only release a new DQ game on a weekend, because otherwise millions of kids/adults will skip school/work just to get their hands on it ASAP and play it all day.

    Even the mere announcement that the next Dragon Quest game will be an Xbox exclusive would guarantee the console's success in Japan. It's like Japanese gamers wouldn't have a choice in the matter. They'd need Dragon Quest 8, and thus they would need an Xbox, no matter what.

    1. Re:Who Microsoft SHOULD Buy by Rayonic · · Score: 3, Insightful

      I know it'll take a while before DQ8 sees the light of day, but the mere announcement of a DQ8 exclusive would create a whole lot of positive vibes for the Xbox. Add to that a few announced-but-missed release dates and the possibility of MS hurrying them along (with cash, etc.), and you're looking at whole lot of sold X-boxen.

      Not saying that it's right, but it's what they should do.

    2. Re:Who Microsoft SHOULD Buy by Yorrike · · Score: 2
      Enix has gone on record saying that DQ8 would be released on the most popular game console. Which at the moment looks like the PS2. As much as I'd love it to come out on the GC.

      Furthermore, Enix will gear the release towards the Japanese market. Even if they decided not to go for the PS2, they'd look toward the GameCube (If Mario and Zelda GC take GC sales through thr roof for example), the XBox launch in Japan was a complete disaster.

      --

      Looks can be deceiving. Or CAN they?

  13. Pikachu for MS Office by famazza · · Score: 5, Funny

    If MS had bought Nintendo then Pikachu could be an MS Office Assistent.

    THAT would be cool.

    --

    -=-=-=-=
    I know life isn't fair, but why can't it ever be un-fair in MY favor!?
    1. Re:Pikachu for MS Office by foniksonik · · Score: 2, Insightful

      I don't know... that might be more helpful.

      --
      A fool throws a stone into a well and a thousand sages can not remove it.
  14. MS is One F***ed Up Company by BurritoWarrior · · Score: 2, Insightful

    According to the artivle, the Xbox project was originally called project Midway????

    They have got to be kidding, naming a project after the naval battle in WWII that turned the tide in the Pacific. Thus, in MS' mind, they are "at war" with the Japanese over the game console industry and hope to "turn the tide" with the Xbox.

    How utterly distatsteful to people who gave their lives in such battles, and how *especially* disgusting and disrespectful that must be to the Japanese.

    I am dumbfounded. How about Toyota calling the next Camry project Pearl Harbor.

    Microsoft continually amazes and disgusts me beyond belief.

    1. Re:MS is One F***ed Up Company by phillymjs · · Score: 2

      According to the artivle, the Xbox project was originally called project Midway????

      I don't remember the details exactly, and came up empty after 5 minutes of Googling, but...

      Years ago, a WWII veteran either sued or just caused a big stink because he bought a VCR made by a Japanese company (Panasonic, I believe). What upset him so was that the manual's example for setting the date and time showed the date being set to December 7 (Pearl Harbor Day, for the especially dense), and this offended him.

      ~Philly

    2. Re:MS is One F***ed Up Company by SuiteSisterMary · · Score: 2

      The Xbox is 'mid way' between a computer and a console.

      --
      Vintage computer games and RPG books available. Email me if you're interested.
  15. Whew! by phillymjs · · Score: 3, Funny

    Thank God this deal didn't go through. The combined evil of Microsoft and Nintendo would have reached critical mass, collapsed inward on itself and formed a black hole that would surely have destroyed us all.

    Years ago, after reading about all the shifty crap that Nintendo pulled in this book, I started thinking of them as the Microsoft of Japan. Price fixing, exclusivity deals with retailers to lock out competitors, the lockout chip feature in their carts, lots of different stuff. Nintendo and Microsoft already have a lot of similar pages in their respective playbooks.

    Microsoft was probably salivating at the thought of having a viselike grip on people's lives from the time they fire up their first video game as a kid, until the final time they turn off their PC before going on to die in their sleep later that night. Luckily for us, the X-Box is proving to be an also-ran, so we won't have to worry about it.

    ~Philly

    1. Re:Whew! by JMMurphy · · Score: 2, Insightful

      Years ago, after reading about all the shifty crap that Nintendo pulled in this book [amazon.com], I started thinking of them as the Microsoft of Japan. Price fixing, exclusivity deals with retailers to lock out competitors, the lockout chip feature in their carts, lots of different stuff. Nintendo and Microsoft already have a lot of similar pages in their respective playbooks.

      Remarkably, Nintendo has still managed to release games and systems that were of very high quality. I'm sure there are a number of MS haters who would quickly forgive them if Windows and various other products weren't so horrifically bad.

      Not to mention the fact, of course, that Nintendo has done very little to stifle any actualy competition in the console market (outside of the average, everyday stuff, of course). Price fixing and required licensing of third party software is fairly standard.

      As far as exclusivity deals with retailers... Hah. First of all, Sony has used a number of strongarm tactics itself. Secondly, a number of retailers refused to carry Nintendo products, because of policy disagreement, (I believe TRUS was one, though I'm not sure) and came *crawling* back once they realized the sales that they were losing. Nintendo didn't necessarily force themselves on anyone, but ended up being mutually beneficial to both parties.

      random

    2. Re:Whew! by SuiteSisterMary · · Score: 2
      Nintendo and Microsoft already have a lot of similar pages in their respective playbooks.
      ALL companies read from the same playbook. Just to (perhaps vastly) different degrees.
      --
      Vintage computer games and RPG books available. Email me if you're interested.
    3. Re:Whew! by FuzzyBad-Mofo · · Score: 2

      Not to mention the fact, of course, that Nintendo has done very little to stifle any actualy competition in the console market (outside of the average, everyday stuff, of course). Price fixing and required licensing of third party software is fairly standard.

      Yes, but is it fair? Before Nintendo, there was a free market in videogames.

      A developer could port to any system they wished, at their discretion. Now it has become the norm that the developer must pay the hardware vendor for the priveledge to write software for their system. This approach opened the door to price fixing and non-compete clauses in the videogame market, in addition to stifiling homebrew development.

      I know that many Slashdotters grew up on Nintendo, but *they are* the Microsoft of the videogame world.

      Fuzzy
  16. MSMari~1 by Jon_Sy · · Score: 4, Funny

    Can you see it now?

    First, Mario kills Luigi, who is unnecessary competition. Of course, he has nothing to fear from Bowser: his employer has proprietary rights to hellfire. Soon the Kuppas will be building Mario's .NET empire, while the courts are paid off with funding from Yoshi's magic mushroom factory.

  17. Re:Typical M$ by bmetz · · Score: 3, Interesting

    Pioneered my ass. It plainly said in the Netscape executable that the report-bugs-back-to-netscape technology was licensed from some other company. (This is to say nothing of the shitload of licensed technology in Netscape)

    Welcome to the real world, where software engineering decisions involve deciding whether buying technology is a more soft effective idea than producing technology.

    --
    What did you eat today? http://www.atetoday.com/
  18. If only I could by WildBeast · · Score: 2

    If I could buy Nintendo I would, but I can't afford it, so instead I'll sell myself to MS for $25 billion. Unless someone else have an interesting offer?

  19. Makes sence by Edmund+Blackadder · · Score: 2

    When entering a new market it is always easier to buy another company (if you can afford it) rather than try to force your way in there. When you buy another company you get consumer base, brandnames expertise etc.

    1. Re:Makes sence by Paul+Komarek · · Score: 3, Insightful

      What's weird is that they wanted Nintendo to throw their brand and expertise away by cancelling the GameCube and backing the very new, very experimental, very strange Xbox. Seems idiotic to me.

      -Paul Komarek

  20. Midway by The+Monster · · Score: 3, Insightful
    They have got to be kidding, naming a project after the naval battle in WWII that turned the tide in the Pacific
    Uh... you ever hear of the Midway division of Bally? You know, the folks who bought the US
    rights to Pac-Man from Namco (a Japanese company)? I always thought their name was based
    on the notion of a carnival Midway; I suspect that Namco's executives, if they even thought about
    it, either shared that idea, or didn't care so long as they got paid.

    --
    Fight wide posts! Put in your own <br>

    --

    [100% ISO 646 Compliant]
    SVM, ERGO MONSTRO.

  21. Re:An offtopic question (re: Germany) by Fat+Casper · · Score: 2, Insightful
    I'm impressed. You managed to use "insight" and "opinions of the general populace" in the same sentance while keeping a straight face. Just keep on holding your breath- Jon Katz ought to put your question on the front page next friday or so.

    --
    I spent a year in Iraq looking for WMD and all I found was this lousy sig.
  22. So let me ge this strait by Edmund+Blackadder · · Score: 2

    Ninetendo wanted to learn from Microsoft about making console games and systems. Because Ninetendo lacks experience in that field you know.

    Unless Ninetendo needed urgent information on how to make a bussiness plane or a golf simulator, i would suggest you have it backwards.

    1. Re:So let me ge this strait by edwdig · · Score: 3, Insightful

      Notice how Nintendo is pricing their products to be cheaper than Microsoft's. Microsoft makes a move to cut prices, so does Nintendo. Nintendo now knows MS's price points, and their strategies, further enabling them to stay ahead.

      I don't think Microsoft would've approached Nintendo if they weren't serious about a buyout attempt. Nintendo learned their leson from the Playstation ordeal.

      MS came to Nintendo and said "This is our plan. Want to be part of it?" Nintendo said, "Maybe, tell us more." MS gives Nintendo their full strategy, at which point Nintendo blows them off.

      No matter what your market position is, knowing what the costs of your competitor's product is, and what their strategy is definately helps.

    2. Re:So let me ge this strait by NanoGator · · Score: 3, Insightful

      "Notice how Nintendo is pricing their products to be cheaper than Microsoft's."

      Correction: Notice how Nintendo is aware that parents don't want to spend a lot of money for a game system?

      Their price motives have nothing to do with what they learned from MS. It has to do with the fact that $200 is far closer to an 'impulse buy' than a PS2, XBOX, or any of the other ridiculously priced systems. Even Sega knew this when they made the Dreamcast.

      If you want more proof that Nintendo's pricing is a result of careful planning vs. leveraging of 'MS Price points...' (which they would not have known back in 99, heh), then crack open a GameCube, then crack open a PS2 and an XBOX. What you'll find upon opening a GameCube is that a bunch of guts won't fall out. It's a very clean, elegant design. They didn't add DVD player capability (i.e. no royalties to pay to MPEG/DVD groups...), it's small so it requires fewer resources, and there's only one main circuit board plus a riser card for the controller inputs.

      Nintendo's pricing is based on knowledge of what people who buy games spend their money on, not based on what they couldn't have known about MS. Remember, it may sound great to have a DVD player built into a game machine, but this machine's main focus is kids. Parents buy the game machine. They look at price tag, not features.

      --
      "Derp de derp."
    3. Re:So let me ge this strait by edwdig · · Score: 2

      I know Nintendo always sells their new systems for $200. But look at Europe. It's even cheaper there. As soon as MS dropped the Xbox price their, Nintendo dropped the GameCube price.

    4. Re:So let me ge this strait by NanoGator · · Score: 3, Insightful

      "That's because the design is skimpy and lean, not because it's 'clean, elegant design.'"

      Really? Then how come this 'skimpy and lean [design]' isn't getting it's butt kicked by the presumably not-so-lean XBOX? XBOX might have a little bit of power superiority over GC, but not $100 (or twice the price of the GC) better.

      Nintendo *always* puts all kinds of effort into making sure that the circuitry is as elegant and simple as possible. If you don't believe me, look at the Game Boy, Nintendo 64, and SNES. They always put extra development time into this. Some would say that's why Nintendo often misses their planned launch dates.

      --
      "Derp de derp."
  23. Re:Shigeru Miyamoto by kubrick · · Score: 2

    He's the Steven Spielberg of video games

    Hardly high praise in my book. I'd rather buy games by the Orson Welles or Robert Altman of video games (any ideas? :)

    --
    deus does not exist but if he does
  24. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  25. Xbox is in trouble by Bethor · · Score: 5, Insightful

    I think Microsoft will never be a big player in the videogame industry, regardless of how much money they pour into it.
    They need to dominate both the American and Japanese markets to stand a chance.
    Here are some of the things that will stop them:

    - Most important video game developers are Japanese. Those companies have strong relationships with Sony and/or Nintendo. You simply can't buy your way into a closed industry in Japan. I know, I work there.
    - Culture clash. Japanese gamers don't like the Xbox. It's big, ugly and all the exclusive games are very American.
    - Microsoft has absolutely no way to force anyone to buy an Xbox. Their Windows/Office tactics don't apply here.
    - MS actually looses money on each Xbox they sell. If they don't have a big market share a couple years from now (and they wont), they will NOT keep trying. Not even M$ can afford to do this.

    If I was Microsoft, I would make Xbox2 run PC games directly. No porting needed whatsoever.

    Cheers.

    1. Re:Xbox is in trouble by alcmena · · Score: 5, Funny

      Microsoft has absolutely no way to force anyone to buy an Xbox.

      Microsoft could start bundling XBoxes with Windows.

    2. Re:Xbox is in trouble by rkgmd · · Score: 2, Informative

      Wrong! From this article, msft has about $5.3b in cash and cash equivalents (that can be quickly liquidated), and, "using a slightly more expansive methodology", about $36b. But, remeber that this includes items like various venture capital investments that a) cannot be liquidated easily, b) probably required to support its stock price and market cap(~$300b with P/E of 45, a relative high). In any case, while the article acknowledges that the $500m that msft spent on xbox marketing won't probably affect it much, the stock market does not necessarily applaud a product unless the investment is recouped somehow in a fairly short interval.

    3. Re:Xbox is in trouble by Odinson · · Score: 2
      "Wrong! From this article, [forbes.com] msft has about $5.3b in cash and cash equivalents (that can be quickly liquidated), and, "using a slightly more expansive methodology", about $36b"

      Yea 36 billion, unless Congress changes the employee stock option laws in response to the Enron thing. The WORST hurt on the DOW will be MSFT measuring in at 18 billion dollars in the red (from 4 to 7 in black) to shift around before they can show a profit. Microsoft==20 year old Enron.

      That gives them about two more years of running off reserve cash with no revenue, not the typically quoted five.

      They couldn't get the mafia on murder, the IRS got them on tax evasion. MSFT meet the SEC.

  26. MS bob by autopr0n · · Score: 2

    Intresting note, the woman who lead BOB's development whent on to marry bill gates. Now she's in charge of billions of dolars to help starving africans and stuff.

    I don't know something about that just seems wrong some how...

    --
    autopr0n is like, down and stuff.
  27. Re:What would have happened? by nomadic · · Score: 2

    Not really. General Motors and Ford both own significant shares in Japanese car companies.

    It's that neverending recession of theirs. Despite the insistences on both sides that Japanese companies are just that more efficient and successful than American ones, the Japanese recession is already over a decade old.

    If I owned Nintendo, I would have definitely cashed out; they're just not worth 25 billion, and a lot of their money is from the Pokemon franchise (and the chances are very slim that they'll get a new fad to match that anytime soon).

  28. Re:Dr. Pierce discusses the Jewish Problem by saihung · · Score: 2, Funny

    You know, I'm Jewish and I keep hearing about this whole worldwide Jewish conspiracy. Apparently I'm not entered in their records correctly - could someone tell me who I need to write to so I can get my monthly check and my "How to manipulate the media" packet?

  29. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  30. Re:that is totaly bogus by DoomPlague · · Score: 2, Insightful

    Believe it or not, Nintendo is that big. They make more than twice as much in revenues in the game industry as anyone else and they have a lot of valuable intellectual properties.

  31. geez... by autopr0n · · Score: 2

    Microsoft was probably salivating at the thought of having a viselike grip on people's lives from the time they fire up their first video game as a kid, until the final time they turn off their PC before going on to die in their sleep later that night.

    hahah, that's some desturbing images there... the final time they turn off their PC and go to bed at night to die...

    Anyway, I don't think David Sheff painted Nintendo as totaly evil, although they kind of are :P (just look at their reaction to the emulation scene)

    --
    autopr0n is like, down and stuff.
  32. Re:Typical M$ by LadyLucky · · Score: 2
    Don't you realise, netscape was killed by microsoft, so we like netscape.

    Since we like netscape, mere technical details such as the one you mention are selectively forgotten.

    Please don't move our cheese!

    --
    dominionrd.blogspot.com - Restaurants on
  33. Re:Typical M$ by Eil · · Score: 2


    Yes, well these "x actually did y before z even thought of it" wars are quite common here, unfortunately, and I won't be dragged into one now.

    Get over. Innovation is the art of bringing advancements to the populace. Unix has its fair share, and so has Microsoft.

    I wouldn't be so perturbed if MS would at least acknowledge that many the features at hand existed before MS was even a company. (Let alone actually give credit.) They spin them off as being Yet Another Pioneering Microsoft Innovation.

  34. Re:Typical M$ by Eil · · Score: 2


    Come on, of course Microsoft has copied Unix. How could they not!!!

    My problem with MS is not so much that they borrow many of their ideas (and even code) from other operating systems, rather that they do so and then proceed to spin it off as Yet Another Microsoft Innovation.

    Considering their (now) very public anti-Unix stance, you'd think they wouldn't have anything to do with Unix. At all. But to this day, we keep seeing MS announcing New and Incredible Features and ideas that were either pioneered or made mainstream by Unix and other operating systems that have been around for decades. They even go so far as to "borrow" code (I think the Win2k/XP TCP/IP stack, not sure) from BSD and then spout about all the evilness that Unix must be.

    Linux and UNIX groupies like you give the community a bad name.

    I use Linux (and other unices or clones) because it suits me. Unix works for what I want it to do, and it works well. That makes me a groupie, eh? Might want to rethink that /. elistist attitude of yours. I'm not the anti-MS zealot that you attempt to paint me as.

    I'm typing this in Windows XP right now, so obviously I must not have too much of a problem with Microsoft's products themselves. What I do disagree with is their actions as a corporation. There is so much potential for Microsoft to be an asset to the computing industry it's not funny, but so far, like every other major American corporation, they are consumed with greed. For both money and mindshare.

  35. Re:What would have happened? by Xenex · · Score: 2
  36. Re:Typical M$ by Eil · · Score: 2


    From the Merriam-Webster OnLine Dictionary:

    intransitive senses : to act as a pioneer
    transitive senses
    1 : to open or prepare for others to follow; also : SETTLE


    I never said anywhere that I thought Netscape developed the full-circle reporting technology themselves. My definition coincides with the one pasted above. That they brought auto bug-reporting technology to the mainstream, just as a lot of Unix features and programs were never developed *for* Unix, but made their name because they were introduced into one form of Unix or another.

    Welcome to the real world, where the unwashed masses can't see a monopoly and illegal or immoral business procedures even when it makes front-page news.

  37. Thinking Ahead by _Sprocket_ · · Score: 2
    I was going to entitle this reply "Microsoft is in trouble". But that would have been inflamitory. It is simply not true. But it would be if they continued to look at the market like it has remained the same in the last 5 or 10 years.


    The desktop OS (and possibly desktop computer) as we know it is doomed. Or very likely to be doomed. If the desktop computer remains roughly the same as it is today, it is likely to be overran by commodity operating systems (just as the hardware became largely a commodity market). But more likely the desktop computer will change in drastic ways sometime in the future (leaving techheads like us with a niche market of commodity hardware and software).


    One way or another, Microsoft's current market will change. To maintain their business, Microsoft must also change. The trouble is, technology rarely broadcasts the next Big Thing. So that leaves Microsoft and every other tech pundit guessing.


    But any good pundit knows how to play the odds. The strategy is to figure out what the possibilities are and cover those bases. Hedge the bets. If you can afford it.


    Microsoft acts on the their guesses for future markets. Set-top boxes. PVRs. Web-based services. PDAs. Webpads. And in the Xbox... a game console (with considerably more potential than just console gaming).


    If these initiatives do not provide great return, or actually loose in the market place... well, that is a luxury Microsoft can afford. They must not allow the next industry boom abandon them to being a footnote in IT industry history. They are hedging their bets.

  38. Re:Compared to Game Over by SuiteSisterMary · · Score: 2

    I've not read the Xbox book, but if you liked Game Over, two others to try are Revolutionaries at Sony, which is about the Playstation, and Renegades Against The Empire, which is the story of DirectX.

    --
    Vintage computer games and RPG books available. Email me if you're interested.
  39. So that's what the HD might be for by fons · · Score: 3, Insightful

    If I was Microsoft, I would make Xbox2 run PC games directly. No porting needed whatsoever.

    I've always wondered why there's a relativly big HD in the Xbox. Not for the stupid music options, surely. And it's way too big to save games.

    The HD would make sens if a future OS upgrade would make playing PC-games possible. Cause you need a HD to install those games on.

  40. Re:Typical M$ by Tony-A · · Score: 2

    UNIX was around long before the first VAX.
    The point to Multics was security.
    UNIX is software. VAX is hardware. I'm not at all sure how it could be possible for software to "borrow tons" from hardware.

    The only things that UNIX stole from multics was users.
    Might be more accurate so say that UNIX stole some excellent developers.
    IIRC the only users that were stolen were the creators of UNIX.

  41. They dont really need Japan by LordZardoz · · Score: 2

    Actually, thats not quite correct. To be a great success in the Console market, they could do so without Japan as long as they get a majority of the market in Europe as well as the US.

    Japan would be a great help for microsoft, but the culture clash would probably kill them there, as it may already be in the process of doing. Microsoft gravitates towards pleasing the majority, and likes to stay Mainstream. In Japan, there is a greater tolerance for Niche markets. After all, could you picture Microsoft getting behind a game where you are a mosquito in a girl's room, and your trying to bite her without being swatted? Such a game already exists in Japan.

    But in Europe, the strategy of sticking to the mainstream will be much more successful. The culture clash will be reduced. All Microsoft has to do to win a good market share in Europe is make sure that the big name titles are released very close to the US release date. If the newest titles arrive on the X-Box 2 months before they arrive on the PS2 or the GameCube, they will win that market. And all that would need to be done to insure that is guarantee that all the "Big" titles are devoloped with the French, German, Spanish, Portugese, Sweedish, and other major languages kept in mind from day one.

    END COMMUNICATION

  42. Comment removed by account_deleted · · Score: 2

    Comment removed based on user account deletion

  43. Re:Shigeru Miyamoto by alphaseven · · Score: 2, Interesting

    Hmm, Alexy Pajitnov would be the Orson Welles of video games (one great game, Tetris, but then what?). Hideo Kojima is the Kubrick of video games (technically excellent, but good luck making sense of it). Hironobu Sakaguchi might be the James Cameron of video games (epics with lots of action with a sappy love story, every time).

    If you're looking for art, check out ICO for Playstation2, whoever designed that is the Tarkovsky of video games.

  44. Re:Typical M$ by Eil · · Score: 2


    I'm at fault for sterotyping you as well, it's just that I'm starting to tire of the slashdot community as a whole. That's where the "elitist" remark came from. I'm not going to make a big fuss about it here, but from the way things get moderated these days, I'm starting to think there is some kind of Mainstram Slashdot Collective Mind(tm) at work against anyone with a differing opinion, or anyone who voices obvious but unpopular statements of fact.

    But worst yet, I'm fear I'm getting sucked into it as well.

    Besides, despite what I said, I could tell you weren't that bad a guy from your sig. :)

  45. Re:Typical M$ by Tony-A · · Score: 2

    Somehow I think VMS would have troubles running on a PDP
    64K should be enough for anybody, espectially if that's 64k data AND 64k program space.

  46. Super AUTOEXEC.BAT Bros. by sharkey · · Score: 2

    Need more be said?

    --

    --
    "Outlook not so good." That magic 8-ball knows everything! I'll ask about Exchange Server next.
  47. Re:I've got a bridge to sell you by NanoGator · · Score: 2

    "And you know that because you read it somewhere in a magazine.

    Remember, business is war. Telling stories like this makes people like you think they know what's going on."

    Yah... how dare I attempt to sound informed after doing research.

    --
    "Derp de derp."