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Opinion Game Dev Nintendo says future acquisitions would be driven by ‘tech innovation’

IbizaPocholo

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President Shuntaro Furukawa discussed the company’s plans for its ¥1 trillion ($9.2 billion) war chest during a press conference following Thursday’s publication of its full-year earnings results.

“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,” he said (via Nikkei, paywall).

Furukawa said in February that simply increasing the size of Nintendo’s development teams through acquisitions would not be prudent as it wouldn’t necessarily result in a higher quality games line-up.

He told Nikkei (paywall) that the company’s approach to M&A is based on whether potential targets can “improve the value of entertainment that Nintendo provides”.
 

hybrid_birth

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Nintendo:

 

Kumomeme

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sounds like they gonna aim those who can provide tech for future.

cloud streaming services
VR
augmented reality
or any company has motion tech for example, anything that can incorporated to their console
 
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Woopah

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It's also worth noting that they also said that software investment is the main reason for their large R&D budget.

So this is a continuation of Nintendo's policy of growing internal studios and partnering with external ones. They've pretty much always preferred partnerships to acquisitions.
 

dvdvideo

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sounds like they gonna aim those who can provide tech for future.

cloud streaming services
VR
augmented reality
or any company has motion tech for example, anything that can incorporated to their console

Yes this exactly, thier history is trying to embrace or enhance new tech in a way that is mainstream. Personally I think some form of augmented reality suits them very well.
The floating screen in front of you to play 2d games, but also quasi vr games with of course vr style motion controls.
The kicker is it can be docked for tv play.
 
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theclaw135

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Reluctance to acquire studios is a paramount secret to Nintendo's success.

Nintendo gets their name on the box, all the recognition. Without having to pay the developer's wages, taxes, or upkeep, since they don't own them.
 

Woopah

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Reluctance to acquire studios is a paramount secret to Nintendo's success.

Nintendo gets their name on the box, all the recognition. Without having to pay the developer's wages, taxes, or upkeep, since they don't own them.
A lot of it depends on if the developer wants to be bought or not. NLG wanted to be bought, whole other partners like Platinum prefer to be independent.
Since Nintendo loves porting games, they should look into buying Bluepoint or would they not gel as Bluepoint make an effort porting a game?
Bluepoint is more into remakes then ports, but not sure there's much value to Nintendo buying them.

Jim at least tries to change things… for better or worse
Nintendo seems forever hibernating…. Drifting in the capsule… in space… for all eternity… drifting… away….
For all their faults, I'd say it's pretty hard to argue that Nintendo doesn't change things.
 

Elder Legend

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Lol. "Tech Innovations" and Nintendo in 1 sentence? Yea right. These morons still don't even have a proper online eco system, and they are about 16 years late to having achievements. Please Nintendo shut the fuck up until you add basic features such as good online net code and achievements/trophies.
 

Foorbits

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Lol. "Tech Innovations" and Nintendo in 1 sentence? Yea right. These morons still don't even have a proper online eco system, and they are about 16 years late to having achievements. Please Nintendo shut the fuck up until you add basic features such as good online net code and achievements/trophies.
You’re calling Nintendo morons?

Chappelle Show Lol GIF
 

Elder Legend

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You’re calling Nintendo morons?

Chappelle Show Lol GIF
When it comes to basic features yes lol. I love their games and the Switch. Animal Crossing and Mario Oddysey are one of the best things they've released in a while. But I'd just wish they would get with the times. Its just funny too see them talk tech innovation to me when they still missing achievements and online that can properly work and don't even try to deny that. You know they dropped the ball on that hard.
 
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Corgi1985

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Hey nintendo maybe stop with underpowered gimmick consoles with shit controllers and put in a chip stronger than a dorito
 
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I wonder what kind of technology Next Level Games had that compelled Nintendo to snatch them up. It's probably due to Luigi's Mansion 3 looking like a PS4 game that sealed the deal.
 

Woopah

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I wonder what kind of technology Next Level Games had that compelled Nintendo to snatch them up. It's probably due to Luigi's Mansion 3 looking like a PS4 game that sealed the deal.
For Next Level Games it was the fact that the owners wanted to sell and Nintendo didn't want to lose them. If the owners wanted to remain independent I don't think Nintendo would have bought them.
 

Zannegan

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So buy Sega and get a whole host of competent PC development teams then use them to build a PC client and a generally competent online platform.

The IPs and massive increase in development resources are just an added, accidental bonus. =P

Seriously though, I wonder what tech they'd be looking into--streaming, VR, haptics, online gaming, what?
 
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dvdvideo

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Compared to PCs, Xbox and Playstation are underpowered gimmick PCs with weak chips, but who's counting

That's not actually true, often when consoles first launch they have hardware or features that pc lack. It's ussually only later in a consoles cycle that they are eclipsed by the PC. The closed architecture offers a lot of advantages.

That said, Nintendo in recent years are pushing way older hardware in an effort to either keep down cost or be portable.

But way in the past, the super Nintendo and n64 both had some cutting edge graphics features for thier time. Even the GameCube in some ways. Not so much the wii and wii u, or the switch.
 

as1m

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Hey nintendo maybe stop with underpowered gimmick consoles with shit controllers and put in a chip stronger than a dorito
But it’s working for them and has worked for them in recent history so I don’t see that as an issue.
 

Punished Miku

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It might result in fucking more of them though.
They train their own staff to work in a certain way. Gameplay first, high quality. Its more valuable for them to hire new people and train them to grow their studios. They're not as interested in buying studios with a different game development culture.

I think they do work well with Capcom and Platinum though. If they buy anyone it'll probably be someone small like Grezzo, or Tantalus.
 
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Woopah

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It might result in fucking more of them though.
They can achieve that just as well with partnerships. They don't necessarily need to buy more companies.

I think 2020 was an outlier and in 2021 Nintendo will return to their normal prolific ways. We've already seen this in the first half of the year, and judging from the CEOs comments we'll see it in the second half too. E3 should give us more visibility.
 
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Woopah

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I didn't even know Nintendo was shopping around for studios.
They're not, they've made it clear they will invest in software though internal expansion and external partnerships rather than studio acquisitions. What they are saying is that they may need to buy technology companies, depending on how the gaming industry evolves.
 

skit_data

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I really would like to see Nintendo make a DLSS equipped monster of a console and completely body both MS and Sony just for the shits and giggles.

It would probably not be the wisest decision though and I really don’t think they need it at all. It would still be fun to watch them come out of leftfield and deliver something crazy in terms of raw compute and performance coupled with Nvidia tech.
 

Zannegan

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I would hope so, half the releases lately have been Wii u ports. Need to make some new studios.
Isn't this the opposite of what they're saying? Not IP or development capacity related, but more to get a studio's proprietyary tech? That could mean a porting studio like thone Sony picked up for PC, but that seems cobtraryto what you're looking for.
 

akaFullmetal

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Isn't this the opposite of what they're saying? Not IP or development capacity related, but more to get a studio's proprietyary tech? That could mean a porting studio like thone Sony picked up for PC, but that seems cobtraryto what you're looking for.
I still think it would benefit output if they had more internal teams, than buying proprietary tech. Buying the tech will help of course, still need the teams to build them.
 
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RoboFu

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Makes sense. I mean their current devs are making 20 million + sellers. 🤷‍♂️
 

Rat Rage

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Furukawa said in February that simply increasing the size of Nintendo’s development teams through acquisitions would not be prudent as it wouldn’t necessarily result in a higher quality games line-up.

Actually I disagree. Especially these days, where graphics have already hit diminishing returns and AAA gaming - much like the movie industry - struggles to come up with new and fresh ideas and more and more people simply don't get wow'ed by graphics, setpieces and presentation alone anymore, the ideas, exectuion and the overall quality of the games themselves will become extremely important as the industry moves forward and securing top talent and top studios (not necessarily the biggest studios, but the ones with the best, talented and most pationate and most creative developers) will absolutely result in a higher quality games line-up.