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EA Founder Predicts MS Purchase of Nintendo

New site Xbox2News.com (via Evil Avatar) has up an interview with Trip Hawkins, founder of Electronic Arts and recent AIAS inductee. During the course of the interview, he is asked what he sees as the future course for Nintendo. His answer? "My magic eight ball says they will be acquired by Microsoft within five years." Tycho has commentary on the man's forcasting abilities in today's post.

30 of 132 comments (clear)

  1. well.. by gl4ss · · Score: 2, Informative

    ea's grand plan is to just buy everything.

    surely they must think that other companies do so as well and by logic microsoft is bigger than N, so they buy them.

    --
    world was created 5 seconds before this post as it is.
  2. Magic 8 Ball... by Alkaiser · · Score: 5, Funny

    Where was it when you were trying to figure out if making 80 Army Men games in 3 years was a good idea?

    --
    Netjak.com independent reviews of domestic & import video ga
    1. Re:Magic 8 Ball... by Psychochild · · Score: 3, Interesting

      Haha! Exactly. I'm a 3DO survivor and know exactly how well ol' Trip's Magic 8 Ball works.

      (Side note, why not mention him as founder of 3DO instead of EA? It's more recent, and oh, yeah, out of business! :P)

      Seriously, this is the man that for years said online gaming wasn't ready for prime time, that it wasn't profitable, etc, despite the obvious successes of online games. It sucked for me, because my team working on Meridian 59 got almost no resources since online games couldn't be profitable, according to Trip's Magic 8 Ball. So, it's not a surprise that it faded into oblivion only to be resurrected by a much smaller company that cares. And has made the game profitable with few resources.

      Ah, well. Hopefully one day I'll have a fluke success so people will listen to me no matter how irrelevant I become.

      Have fun,

      --
      Brian "Psychochild" Green
      MMO developer's blog
  3. Funny, my magic 8-ball says... by MBraynard · · Score: 5, Funny

    Today, Slashdot will post silly, unsubstantiated rumors from 'experts' speculating out of their nose.

  4. 3DO by Grond · · Score: 4, Interesting

    Tripp Hawkins was also the CEO of 3DO, and we all know how well that worked out. I'd say his credibility in terms of prediction was pretty much shot since he thought the 3DO would take over the world. As opposed to, you know, being a wildly overpriced system with a handful of lame, FMV-laden titles.

    1. Re:3DO by Bustbang · · Score: 2, Informative

      I can't believe I forgot Fifa Soccer with it's wicked fun 6 player mode.

      Space hulk vengeance of the blood angles is a 3DO original,pc psx & saturn are ports.
      Snowjob is a QTVR like game.
      Killing Time had FMV in the intro and the ending.No FMV during the game.

      Actually I have a memory card and mpeg1 video adapter for the fz1 "two unused expansion ports"The modem,mpeg2 & M2 cards never materialized.

      How can you blame Trip for:

      Goldstar's rubbish game selection
      Samsung barely trying
      The no shows in AT&T,Toshiba
      The 3DO company,Panasonic,EA did most of the advertising.While other big licencee got a free ride (looking at you Goldstar/LG)

      The 3DO Game system was a group effort but everyone didn't pull their weight.So It had a early death.

      I'm happy Trip and everyone else at 3DO took the risk.It was by far my favorite game system.

    2. Re:3DO by Craig+Maloney · · Score: 2, Interesting

      Space hulk vengeance of the blood angles is a 3DO original,pc psx & saturn are ports.
      Snowjob is a QTVR like game.
      Killing Time had FMV in the intro and the ending.No FMV during the game.

      Didn't know SpaceHulk was a 3DO original.
      Killing Time had FMV spiced throughout the game as you completed levels and entered different rooms.

      Actually I have a memory card and mpeg1 video adapter for the fz1 "two unused expansion ports"The modem,mpeg2 & M2 cards never materialized.
      Ah, you're right... I forgot about the mpeg card. Never saw the memory card, though.

      Other great games were Foes of Ali, Starblade (Excellent arcade port), and Braindead 13 (Better than the ports out there).

      I blame Trip Hawkins for not being honest with what the role of the video game system was. I blame him for not being honest when the system was clearly outclassed, and the M2 was nowhere near production (M2: Coming soon!) I blame him for a SRP of $700, since the hardware manufacturers couldn't offset the price with software sales. I understand it was a rough time for video games, and the competition when the 3DO was released wasn't even up to par with what the 3DO could do, but thee model Trip used for the 3DO was understandably flawed.

      Maybe I'm being too hard on ol' Trip, but he's still got a lot of ground to cover before I'll trust his predictions. He may have been the father of EA and 3DO, but I think some of that can be attributed to right-place-right-time.

  5. Nintendo is not for Sale by Aggrazel · · Score: 4, Interesting

    If Nintendo were unprofitable, I would think they could be for sale.

    But they are not. They are VERY profitable. They have the BIGGEST franchizes in games. They have no reason to sell to Microsoft unless Microsoft offers ludicrous money.

    Also, Nintendo isn't just video games. Pokemon anyone?

    Anyway, I don't see Nintendo ever selling to anyone.

    1. Re:Nintendo is not for Sale by Pluvius · · Score: 2, Insightful

      Remember what happened to Square? In 1998, it was making money hand over fist. Just five years later, due to bad decision-making, it came out on the losing end of a merger with Enix. I could easily see the same thing happening to Nintendo, just not with Microsoft. Or EA, for that matter.

      Rob

    2. Re:Nintendo is not for Sale by shawb · · Score: 2, Informative

      Sony maybe? Or maybe Mitsubishi. Those guys are close to having a vertical monopoly (where you produce a little bit of everything, not so much that you have a particular market cornered.) Seriously, go take a look at Mitsubishi's website and see how many different things that company does. In addition to the TV's and automobiles that we know about (both Mitsubishi and Isuzu,) Mitsubishi does textiles, chemicals, energy, construction machines, mining, foods, production of space and aircraft equipment, financing, real estate, factory construction, IT, electronics, semiconductors, nanotech, financial consulting, New business consulting, medical care, social services and more. It seems like the only thing Mitsubishi doesn't have a hand in is entertainment media. It may make sense for them to start with video games due to the popularity in their native Japan. Although I'm not familiar enough with their business practices to guess if they'd want to break into the market with acquisitions or just start up their own division. Mitsubishi is one company I wouldn't want to have on my bad side. And I can't find any references, but from what I understand Mitsubishi is family owned.

      --
      I'll never make that mistake again, reading the experts' opinions. - Feynman
    3. Re:Nintendo is not for Sale by hibiki_r · · Score: 4, Insightful

      Square has always worked on high expense, high reward games like Final Fantasy. Their average project's cost has always been among the highest in the industry. Just a couple of games that don't sell very well sends a company like that to their knees. Nintendo, on the other hand, makes as many "surefire" low budget games as EA. How much does it really cost to make warioware?. How much for porting a random Mario game to the latest console?. Even their big budget games are not even in teh same league as a Final Fantasy games as far as project costs go.

      A Nintendo bankrupcy would only happen if all of their hardware divisions fail XBOX-in-Japan style. Nintendo has some serious brand problems, but it'd take unbelieveable incompetence to make them fail in 5 years.

    4. Re:Nintendo is not for Sale by Anonymous Coward · · Score: 2, Insightful

      And yet Nintendo's games are infinitely more fun and rewarding than anything Square produces. Also, I would never call games with eye-candy "rewarding" because they have good graphics or lots of content.

      Additionally I think you seriously under-estimate the actual cost of Nintendo-developed games - whereas Square spend their time on content Nintendo spends their time on the play experience/game mechanics. Most of their major games are in development for 2-3 years with decent sized teams working on them - that is not cheap. Keep in mind I'm not meaning the games they outsource like Mario Party, Wario World etc.

      Unless you have some actual figures I'd say you are talking out your arse.

    5. Re:Nintendo is not for Sale by Datamonstar · · Score: 2, Informative

      That much hurt them, but not near as much as we may have been lead to believe. The real reason behind the merger is partly due to the movie, and partly due to Japanese business ethics. The movie was a big money sink. Huge money sink, and in return all they got back was some name recognition and a suite of now out-of-date SGI computers. So Hironobu Sakaguchi, the series creator, was pushed to the side. He'd already started on Final Fantasy IX , so they allowed him to finish it up, and he'd envisioned large parts of X and the online game, but once he finally realised that he was finished at Square (he was no longer Executive Producer), he left while the Square/Enix mergers were still in the works.

      The reasons for the merger were in part, to recover loses from the movie, but Square was still very marketable and productive even after the movie. Sakaguchi had screwed up big, so they let him fade away into obscurity, all the while making a big move to control, in part, a seriously huge chunk of the RPG market. Dragon Warror, Star Ocean, and other series would become theirs to profit from, not to mention the Final Fantasy series and other sucessful ventures that Square has seen over the years.
      So, you can blame the movie all you want, and it did suck, but in the ened that wasn't the whole story on why Square and Enix merged. It's just as complex a complex story as any other and thinking that one failed venture alone, albeit a giant one, could have caused this is shallow thinking, indeed.

      --
      The eternal struggle of good vs. evil begins within one's self.
  6. The guy is an idiot by EvilDonut · · Score: 4, Insightful
    He is a complete tool. Check out his response to this question:

    With the next Xbox planned for release prior to Nintendo's and Sony's next systems, the cost of implementing a next-gen media format (HD-DVD or Blu-Ray) would be expensive. What do you think if Xbox 2 used the standard DVD format instead of high definition?

    Personally, I don't think this is an important distinction. But maybe some early adopters will care about this and at least initially sway market share. HD will only be relevant in the long run if applications like football use it effectively to enable you to see more of the field. But I think the players are already on information overload as it is.


    He doesn't know what HD-DVD or Bluray is! He doesn't understand the question!

    With regards to his Nintendo prediction, apparently no-one's told him that Ninty has been profitable for 43 years straight, and have something like $8 billion in the bank. Why the hell would they want to sell to Microsoft?
  7. American Purchase? by redpawn · · Score: 4, Insightful

    Do you guys really think Nintendo, a traditional Japanese company would ever sell itself to an American company like Microsoft? I highly doubt it. Nintendo is a very proud company, unless they're completely dead I think they'll keep kicking. If they had to sell out I'd think they'd be more interested in giving assets to Sony than Microsoft. I'm sure Microsoft would love to acquire Nintendo, that would probably help them out a lot in the Japanese market. But coming from the founder of EA I put little to no stock in his .02.

  8. How long... by Arctic+Dragon · · Score: 3, Funny

    How long before Super Mario Brother XP is released?

  9. Obvious! by Anonymous Coward · · Score: 3, Funny

    They'd like to break into the North American market, and what better way than opening up shop in Redmond, WA. More over they could get back to their roots with a Nintendo branded version of Freecell.

    1. Re:Obvious! by SetupWeasel · · Score: 4, Funny

      Nintendo of America has it's HQ in Redmond, WA, already.

      I suggest a move to Walla Walla.

  10. Re:Buy vs Rent by GeckoX · · Score: 2, Interesting

    But you probably pronounced it correctly, in french ;)

    Phonics at work my friend, phonics at work.

    --
    No Comment.
  11. MSFT & Acquisitions by afabbro · · Score: 3, Interesting
    Just as a general point of info...Microsoft has never done an acquisition of this size. Not even close.

    Given their management's emphasis on employee culture, deciding to merge with an organization as large as Nintendo would be a real surprise.

    --
    Advice: on VPS providers
  12. "Hey, Ballmer.. Why don't"... by rylin · · Score: 3, Informative

    Yeah, I'm sure MS will try again after what happened last time. . .
    http://www.gamerah.com/ver_imagen.php?id=226
    http://www.theinquirer.net/?article=20547

    1. Re:"Hey, Ballmer.. Why don't"... by GreenHell · · Score: 4, Informative

      How about the comments of someone who checked with Wired, or Nintendo's own response to the article?

      Or you could, you know, go straight to the supposed source (Wired Magazine, Feb. 2005 issue), and see that it's not listed anywhere.

      --
      "I won't mod you down - I feel the need to call you a twit explicitly, rather than by implication."
  13. after completing the first level by Arctic+Dragon · · Score: 5, Funny

    (dialogue after rescuing the Princess from King W32.MyDoom):
    "Thank you, Mario, but your spyware is in another directory!"

  14. That would be the last straw by bersl2 · · Score: 2, Funny

    I really think my disdain for Microsoft would turn into a full-blown rage. I'm getting angry just thinking about it.

    Goddamnit, does their douchebaggery have no limits?

  15. Nintendo Ain't Goin' Nowhere by Mitaphane · · Score: 4, Insightful

    I don't think the two companies are really comparable. Square was (and Square-Enix is) mostly a game studio for one niche genre of games with an occasional non-RPG game here and there. All they did was make the games. Before the merger Square had EA doing their distribution in the states.

    Nintendo, on the other hand, does more than just make their games; they handle all the other aspects. They handle their own distribution. They have a tremendous amount of capital saved up for investing on game production. They make their own console and portable systems. And then there's Nintendo's other side markets like Pokemon cards and such.

    Square made a huge gamble on borrowing all that money for the Honolulu studios that made FF: The Spirits Within. The odds didn't turn out in their favor and eventually they had to sell that studio. Mostly like they mergered with Square-Enix for a major capital boost.

    Nintendo on the other hand would have to make a really huge investment to put them in the trouble that Square got in. And given Nintendo's past conservative tendencies I don't think they're going to do this anytime soon. They're going to keep playing it safe for quite sometime into future. And it's going to keep earning them money.

  16. Re:Lets just say by Ayaress · · Score: 3, Informative

    Those are also good reasons that Nintendo won't be bought by Microsoft. They've got dominance in the mobile market, but I'll admit (I don't like to admit, but I will) that that dominance is probably not going to last out the year.

    Even so, Nintendo's not going anywhere. They survived major screwups in the past because they're a huge company, and remember that video games aren't their only product. Nintendo's been around since 1889, and they have a lot of power behind them.

    The worst thing that I see happening to Nintendo (it's still years off if it happens, but the PSP just might be the deciding factor one way or the other) is that they'll go the way of Sega - not making systems anymore, but producing their games accross multiple other systems. They have the franchise power, and I believe they still have the genius in there somewhere to make truely new things.

    Mario on the Xbox? Pokemon on the PSP? Zelda on the PC? Hell, I never thought I'd see Sonic and Mario on the same system in my lifetime, but it's happened, and I think Sega is better for it in the long run.

  17. Re:Ha by Arctic+Dragon · · Score: 2, Informative

    General Motors owns 20% of Fuji Heavy Industries (makers of Subaru automobiles), 12% of Isuzu and 20% of Suzuki.
    Sure, they're relatively minor stakes, and Nintendo isn't a struggling automaker, but an American firm buying a Japanese one isn't so unrealistic.

  18. MS + Nintendo = ... by Money+for+Nothin' · · Score: 2, Funny

    Wintendo!

  19. Re:no way by squall14716 · · Score: 2, Funny

    The Inquirer reports:

    "Now he is safely retired, the 77-year old former Nintendo boss Hiroshi Yamaushi is regaling Wired magazine about how he reverted to abuse to silence the mighty Microsoft CEO Steve Ballmer.

    Apparently Microsoft was making a bid to buy Nintendo for absolutely huge amounts of money. Vole was confident that Nintendo would take it. The Game Cube wasn't doing particularly well at the time and there was a lot of money involved. Ballmer himself showed up at the negotiations to have a quiet word.

    However Yamaushi didn't like the deal, which he saw as a loss on a level similar to World War Two. He said he ranted a bit about Japanese values and identity but it went no-where. So in the end he said in Japanese "suck my yellow balls Mr Ballmer".

    The translator looked embarrassed and was clearly not translating the phrase exactly, although Ballmer did smile at a sentence that included the word 'yellow' in it.

    Frustrated Yamaushi stood on a chair, put his hands around his mouth and very slowly and in English said: "Hey Ballmer why don't you suck my tiny yellow balls."

    He said Ballmer and team were speechless. They were as scandalised as if he had shown them a nipple at the Superbowl, he said."

  20. Re:Buy vs Rent by TheLoneDanger · · Score: 2, Funny

    "Je ne sais quoi."

    I don't ever actually use any French, but had to learn it anyways. Damned 2 official languages... (I'm Canadian if you haven't guessed.)

    --

    "But I trust in the people's capacity for reflection, rage and rebellion." -Oscar Olivera