Microsoft Lusts Nintendo, To Little Avail

Richard Finney writes "The online version of Forbes Magazine says that Bill Gates has expressed an interest in buying Nintendo from Japanese billionaire Hiroshi Yamauchi." Though this news seems to have been part of a theoretical 'what if' question, the story reports: "'If Hiroshi Yamauchi phones me up, i will pick up at once,' Gates told WirtschaftsWoche magazine on the sidelines of an analyst conference."

Comments

Giving Sony Competition

[Cpt_Kirks]

This could be interesting, the way train wrecks are interesting.

M$ and the big N together could give Sony fits.

MarioX, anyone?

Very Interesting Fishing Perhaps

[blueZhift]

The article makes it sound like idle talk, but statements from that level may actually have something behind them, but not what you may think at first. I mean Gates knows that he isn't likely to get the opportunity to buy Nintendo. But his statement lets people know that he's in the market. So maybe it won't be Nintendo, but some other prominent Japanese (or other) games company. Who knows? Would Namco, Konami, or Capcom turn him down? Any one of these, handled correctly, could get MS the traction they need in Japan to make the Xbox successor a success there and bolster the chances elsewhere in the world.

I think the next 18 months will be very interesting.

Microsoft or Bill Gates?

[Ianoo]

From the article, this sounds like Gates is interested in buying Nintendo, not Microsoft. But I guess if he owned them both and said "now let's merge" they'd jump to it.

Re:Microsoft or Bill Gates?

[macrom]

I don't know that the FTC, SEC, or whoever would allow this. Gates is the Chairman of the largest software company in the world, already under allegation of existing as a monopoly. To purchase a large company that makes a competing product I think would be rejected, but I'm not overly familiar with corporate law. He would have a majority position in two companies that directly butt heads. That's not good for competition by any means.

I think of it this way : Warren Buffet owns a crapload of Gillette and Coca-Cola. I don't think he would be allowed to own a majority position in Pepsico, Dr. Pepper, Schick, etc. since they make competing products.

No, the only way this could happen would be for Microsoft to make the purchase. Hey, then you could have the latest Square Enix RPG on the Microsoft Nintendo Gamecbue XBox!

RARE

[vasqzr]

Microsoft already bought RARE (Killer Instinct, Donkey Kong Country, Goleneye, etc), and Nintendo owned quite a bit of them at one time.

Re:RARE

[xenocide2]

Ironically, RARE has sole ownership of very little of its software. The Donkey Kong franchise remains Nintendo's, after Rare turned the Bond brand around with goldeneye, MGM decided to keep it to themselves, and they've also done a lot of games with Disney characters, who naturally remain part of Disney.

What I'd heard was the Stamper brothers wanted out of Rare, or possibly simply out of Nintendo's grip. Much of the talent behind goldeneye had already left to form Free Radical. Its amazing Microsoft purchased the company, really. Rare's offerings don't really mesh well with the XBox's heavily marketed demographics, and their in development titles are slowly achieving Duke Nukem Forever status.

If Micorosft were to purchase Nintendo, it would have to be accompanied by a shift in marketing, away from the xTreme appeal they're still making and towards a group and family situation. They'd also have to tell investors to choose between another high profile acquisition and their huge dividend boost, unless Gates was planning to do this with his 3 billion dollar share of the proceeds from said dividend.

Interesting Fishing, or Old News?

[*weasel]

Dean Takahashi's book Opening the XBox has been around since April 2002. It's the first I'd heard about Microsoft's intentions and attempt to buy Nintendo back in the day.

Here's an editor's roundtable from May 2002 that talks about it as well.

Why buy the cow?

[hey!]

When you can buy the milk supply for a lot less?

I'd just hire away Shigeru Miyamoto.

Suppose you're willing to pay X dollars for the company. What do you get? You get name recognition, distribution channels, production facilities, engineering teams, all of which Microsoft already has or can readily buy. You also get the creative talent, which is the one thing you can't just walk out and buy anywhere.

So, insted of buying the company for X, I'd offer some hefty fraction of X to Miyamoto to jump ship, set aside a few milion to keep his noncompete in the courts for a decade or so and to indemnify him when he eventually loses.

But that's just me with my evil overlord thinking cap on.