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Xbox Game Studios CEO Phil Spencer Sees Nintendo as Potential Acquisition Target

Xbox Game Studios CEO Phil Spencer expressed his belief that Nintendo would be a valuable acquisition target for Microsoft in 2020. The discussion took place in an email conversation with Microsoft's executive vice president and chief commercial officer Takeshi Numoto, which was mistakenly published in unredacted court documents. Spencer acknowledged that Nintendo was a prime asset in the gaming industry and recognized that gaming was the most likely path to consumer relevance. He revealed that he had engaged in conversations with Nintendo about tighter collaboration and saw Microsoft as the best-positioned US company to pursue a potential partnership.

However, Spencer highlighted the challenge of Nintendo's strong financial position, stating that the company's board of directors had not pushed for further market growth or stock appreciation. He also mentioned that former Microsoft board member Mason Morfit, president of ValueAct, had been acquiring shares of Nintendo, which could potentially create opportunities for Microsoft.

Spencer emphasized the need for patience in pursuing a merger or collaboration, stating that a hostile action would not be a favorable move. He expressed Microsoft's support for the potential acquisition of Nintendo as an opportunity that could benefit both companies. Spencer believed that Nintendo needed to recognize that their future could extend beyond their own hardware.

The conversation occurred approximately a year and a half before Microsoft's announcement of its intention to acquire Activision Blizzard. The revelation of Spencer's interest in Nintendo sheds light on Microsoft's strategic vision and ambition to expand its presence in the gaming industry.

Sources: Video Games Chronicle

Definitions:
– Phil Spencer: CEO of Xbox Game Studios.
– Nintendo: A renowned Japanese video game company.
– Microsoft: A multinational technology company known for its software products and technology services.
– Acquisition: The act of obtaining or gaining control over another company or asset.
– Collaboration: Cooperation between two or more parties to achieve a shared goal.
– Board of Directors: A group of individuals elected by shareholders to govern a company and make crucial decisions.
– Stock Appreciation: An increase in the value of a company's stock.
– ValueAct: An investment firm that focuses on acquiring stakes in undervalued companies.
– Merger: The combination of two or more companies to form a single entity.
– Activision Blizzard: A major video game publisher and developer.