Microsoft tried to buy Nintendo, but got laughed out of the room
engadget.com
engadget.com
patio11 probably could provide a more accurate projection of a sarariman reaction to the MS offer.
https://www.google.com/maps/place/Nintendo+of+USA/@47.651052...
Kanye visited the Nintendo Booth during that E3 and was even able to spend a bit of time with Shigeru Miyamoto. He then requested a meeting with Reggie, and the two ended up meeting up at one of Kanye's offices in Calabasas, California.
I told him, ‘Kanye, you don’t want to work with us because we’re tough, we’re hard. All we do is push for the very best content. We would not be the type of partner you would want to work with.’
"Well, Kayne, it's because we only want the best. We push very hard for that."
"And…"
"You're not that."
Yes, everything I learned about Japan, I learned from Japanese dramas, why do you ask?
katakana - https://en.wikipedia.org/wiki/Katakana
As for stereotyping… maybe! But isn't "laughing a proposal out of a room" a stereotype as well?
How about we stop assuming mockery just because it might seem plausible and instead we lean toward "no offense intended" by default?
In other cases, the English spelling is still dominant, so using a back-transliterated katakana spelling (e.g. "Rabu Hoteru" instead of "Love Hotel") would be just weird.
[0] https://books.google.com/ngrams/graph?content=salary+man%2Cs...
If some Dutch people bring back Oreos as souvenirs from the US and call them "cookies" instead of "koekjes", are they adopting a cringeworthy faux-American accent? Making fun of how English butchers their language? Or just calling them the way Americans do, without any further judgement?
We don't tend to use salaryman at all. There's white-collar, businessman etc. By contrast sarariman had been popularly coined in the 90s by the Japanese.
But it isn't. How about we stop assuming offense by default and instead we try to expect that other people are as reasonable as we are? For that matter, that one is in the guidelines here.
I don't know what Nintendo would get out of being acquired, and I'm not certain that Microsoft would be able to put together a convincing acquisition deal.
Money. Old companies are merged, acquired, or spun-off all the time.
It's completely possible that Nintendo would prefer to spin off portions of their business which, while profitable, no longer align with their primary markets. Consider companies like General Electric; they started off producing equipment around electric power generation, installation, and use (lightbulbs and appliances), then they got into television, radio, computing, jet engines, health insurance, etc. Over the years they've spun off many of these divisions and today's GE looks nothing like OG GE.
Obviously most of these are not 'technology' companies, but the culture of corporate creation/destruction/merger is somewhat different.
At least such was the case. A major counter example is Mitsui and Sumitomo. The Mitsui and Sumitomo banks merged, which triggered partial merges of other Keiretsu companies: except the real estate. Mitsui Real Estate and Sumitomo Real Estate still operate as competitors. Both developing new housing complexes and office towers.
That's why today's GE is close to bankruptcy and easily threatened by corporate raiders. Arguably if they has stayed focused on their core competency of high quality cutting edge engineering instead of stupid financial engineering, they'd have stayed releva6ans powerful.
Notoriously, Nintendo didn't own Rare (who was a big studio for Nintendo bound games), didn't want to buy when they wanted to sold, and they ended up at Microsoft which is an acquisition that's very hard to spin as a success.
Get this: IS used to work from inside Nitendo's own factory.
Granted, while Nintendo does not own these companies they have strong control. Just last year Nintendo moved all their developers in Tokyo into a single tower.
In the years following the game's release, rumours spread that Miyamoto disliked Donkey Kong Country and found it amateurish, provoking him to create the hand-drawn art style of Yoshi's Island. He was allegedly quoted as telling Electronic Games magazine in 1995 that "Donkey Kong Country proves that players will put up with mediocre gameplay as long as the art is good".
Again according to wikipedia, DKC was one of the top selling SNES games, only Super Mario World and Super Mario All-Stars are higher on the list https://en.wikipedia.org/wiki/List_of_best-selling_Super_Nin....
They lost a lot of developers to Free Radical.
I'm not sure what Microsoft acquired with Rare because besides Viva Pinata and Sea of Thieves the company has basically produced junk over the last eighteen years. They're not even in control of their main IP: Perfect Dark as Microsoft has parcelled that out to another studio for the reboot.
> “One of the most interesting parts of the interview is Stamper's view on Rare's sale to Microsoft, and the question that seems to eternally be on everyone's lips: why didn't Nintendo snap up the studio beforehand? Nintendo owned almost half of the UK company, but for reasons unknown never tried to buy Rare outright, despite the fact that the Stampers were clearly on the lookout for buyers.
Stamper is at a loss as to why Nintendo didn't step in and open up its chequebook:
I've no idea why they didn't do that. I thought we were a good fit.” [1]
[1] https://www.nintendolife.com/news/2015/08/rare_co-founder_ha...
https://micky.com.au/nintendo-acquires-bc-video-game-develop...
Now they are successful, after the huge hits of the Wii, DS and Switch. Even with that the company was in a lot of trouble during the Wii U period in 2014, with executives taking 50% pay cuts.
When this played out in 2000 it was during the N64 era, with GameCube being close to launch. While those were not failures per se, they were very, very far behind the PSOne and PS2 in terms of popularity.
Something to be admired about their corporate culture over there
Also companies acquired by microsoft don't usually have a happy ending(layoffs, product stagnation) see - skype, linkedin, yammer etc
Nintendo was at its lowest point not long back with the WiiU. In 2000 they were looking at lacklustre performance with N64 and Gamecube. (and already fallen behind Sony)
thankfully, not the whole world thinks like that.
Only reason the company is not with a family CEO right now, is because the last family CEO personally gave the greenlight to the shift, because he genuinely believed Iwata (the person that would replace him) was more skilled than he was at managing the company... Yet seemly he still paid close attention to the company even after retiring.
Right now the children of the last CEO that theoretically own Nintendo biggest share block, but seemly nobody is sure of that, only information I found is that seemly one of them sold the shares to Nintendo itself (thus increasing the shares the other members had of Nintendo, percentage-wise).
Here's a financial statement from 2000 [1].
I can find no evidence Nintendo was a family-owned company at any point in recent history. Have a source showing even majority shareholder status by some family combined?
[1] https://www.nintendo.co.jp/ir/pdf/2000/001122e.pdf
[2] https://www.nintendo.co.jp/ir/en/stock/information/index.htm...
However, in many cases this is in direct conflict with much larger value growth that requires a longer investment term. Or in conflict with valuing greater long-term stability over a quick short-term gain.
When you accept outside funding in exchange for shares, control gets shared. Honestly, do we really need to debate this?
Your "shareholders are known for" is simply a BS talking point. Every person who has a 401K is probably a shareholder somewhere. All those hundreds of millions of people value long term stability too. Nintendo is not a penny stock.
They really just have a strong brand, that's about all Nintendo has going for it. Microsoft can steward the brand like they did for Minecraft and it wouldn't lose any value, we'd just get higher quality games and hardware.
As for their systems being "behind", the xbox and playstation motion sensing controllers came _after_ the Nintendo Wii made them popular. The Switch came with a new idea of a console which is both a handheld and one connected to a television. The 3DS came with a lenticular 3D display. Unless you measure being ahead/behind in the sole axis of computational power, they are setting trends and taking gaming to new places.
They are a serious pain when it comes to how they hound fanmade products which might feature any of their IP, have a substandard system for online play, or a poor developer experience but being of sub-par quality is definitely more in microsoft's department than Nintendo's.
No doubt Nintendo has been innovative with the control schemes for their systems, but nothing has really stuck. The 3D display was a gimmick, they even released a second version without it because it was so gimmicky.
I'm not impressed with making a robust console in 2020 as a selling point. I have an iPhone, my expectations for robustness are higher now. The Switch is cheap and clunky and the screen is low res. Great, it can handle falls - welcome to 2005 electronics.
[Citation Needed]. Nintendo has clearly earned a reputation for first party games above any other manufacturer. Nothing really competes with their first party games like BotW, Animal Crossing, Smash Bros, and so on.
I can get Call of Duty on PC, Xbox, Playstation. I don't really see how that's a compelling case for the Microsoft platform. The latest Xbox seems better than the PS5 in my opinion on hardware and price, but the PS5 still seems like a better buy because they have exclusive games and the Xbox Series s/x does not.
I'd say among gamers it's pretty universally agreed that the Switch is not a competing console with PC/Xbox/Playstation. It's an "And" console. You don't get a switch as an alternative to one of the above consoles, you get it as a supplement to the others. Unless you're a casual gamer, in which case you probably just get the Switch.
https://www.businessinsider.com/nintendo-reliance-on-first-p...
I mean this isn't controversial within the games industry. Having diverse sources of revenue matter to support themselves if their first party games take a stumble for whatever reason is critical. It's not like Nintendo hasn't had downturns in the past, e.g. the Wii U era.
That's imo the biggest problem Xbox console is facing. Does it have good third party games? Plenty. Does it make sense to buy Xbox if you already own a PS4/PS5 or a gaming PC? Not really, since the overlap of third party games available on all of them is giant. The only game I know people care about that is Xbox exclusive is Halo series. I don't know a single person who owns a PS4/PS5+Xbox or even gaming PC+Xbox. I know tons of people owning a PC+PS4/PS5, and I know a ton of people who own either a PS4/PS5+Switch or gaming PC+Switch (or all 3 of them). And that's Nintendo's unique offering, being an incredible complement to other consoles, not a direct competitor, while also being a great product of its own that doesn't just function as an add-on.
Mind you, I am not saying that Nintendo shouldn't increase the number of third party games present on their platform, quite the opposite. The increase of third party games on Switch is a really welcome development. However, under no circumstances should they decrease the number of first party games, otherwise they would end up in a losing position.
Parity with the java edition would have been a good start, followed by actual support for more than just cosmetic modding.
If you want real innovation in the industry though, you basically have to play indie games.
I am incredibly happy that Nintendo said "No." to Microsoft here, because the Nintendo Switch is the single greatest console device ever made. The way it handles docking/undocking, game switching, updates, sleep, the controller design of the removable joycons, it's an unprecedentedly good user experience in a way that's going to be incredibly difficult to top. I have been interminably sad that Sega stopped making consoles because prior to the Switch, the Dreamcast pushed the envelope in every possible way for what it meant to be a gaming console. The Xbox One did something great by improving controller design significantly, but realistically the majority of consoles released in the last few decades have not been pushing the envelope in the way that the format allows.
When a beefier switch comes along I’m jumping on it. The switch has been the funnest and most engaging gaming I’ve had in a decade.
If they ever release an upgraded set of Switch hardware that maintains compatibility with previous titles, I'd be really interested. But I have to be honest and say I'm not really dissatisfied with what it is today at all. Even the resolution is okay, considering the screen size. Hades is one recent release that's really great and works perfectly on the Switch, as an example.
Sony and MS: let's build a gaming PC and just have a different enclosure for it.
Nintendo: what if we try <any number of crazy and interesting ideas>.
Also: a few days ago a friend of mine got stuck with shitty mobile internet for e few days. The only gadget that by default assumed there's no internet and just kept on working with no problems was Nintendo Switch. Everything else (phones, consoles, readers etc.) just couldn't imagine a world without an internet connection and would suffer when connectivity was bad/intermittent.
I do have game pass, and the experience has been a constant reminder for why I hate a lot about the modern gaming world (with the exception of Switch, like you said). Often times when I just want to sit down and play a game, I instead have to jump through a series of hoops: download xbox update > update xbox > download game update > update game. For added fun, once in a while you even have to update your controller. Meanwhile I've never updated a switch game and always have a pleasantly plug and play experience.
This is called "lateral thinking with withered technology", an engineering principle articulated by Gunpei Yokoi. In Yokoi's day, the rationale for "withered technology" was that it was cheaper and much easier to second-source, meaning that a shortage from a single supplier wouldn't hold up the production run.
It wasn't until fairly recently (Wii and later) that Nintendo realized that participating in the red queen's race of ever-increasing console specs was going to get them trounced by megacorporations with much more cash to burn selling consoles at a loss, so they had to pivot to producing cheap hardware with unique value adds in order to get the console profitable fast.
And if they joined, Microsoft is not the company that would have let them drop everything for the Wii (strange to say after the fact given kinect and stuff, but those were followers of a known success move), or again for the switch
Also all of Nintendo's mobile games require an internet connection to play.
Just playing devil's advocate. I am a huge Nintendo fan.
Hey, now, those are vital to the jumpless challenge run: https://www.youtube.com/watch?v=ahyd-tw2s0Q
https://www.cinemablend.com/games/1644500/how-much-money-nin...
https://metro.co.uk/2020/09/10/xbox-series-x-and-xbox-series...
PS Nothing really wrong with a loss leader to draw customers. The problem with the console being a loss leader is MS and Sony have to perpetually build consoles that are loss leaders to show "advancement" that keeps customers. It also makes them reliant on subscriptions and software sales to maintain profitability. So, they are incentivized to lock customers in or they will lose profitability.
I've just discovered Warioware Smooth Moves and man, was it fun! A great way to spend time with friends in these sad times.
I’m also pretty impressed with XBox game pass- it has changed my relationship with gaming. I’ve been gaming with my XBox than my Switch because its reduced the friction of accessing high quality console games, and I’ve been trying more indie games because they are just there.
Not the sort of hardware innovation you are talking about, nor is Microsoft a first mover in the game subscription space, but still important I think.
Disclaimer- I’m a Microsoft employee, but not working on anything near gaming, and my opinions are my own.
I haven't seen any phone stuff that's similar to the capabilities of kinect. VR is the closest thing in the current crop that I can see.
Its ability to accommodate 2 players with a single control-set is also amazing.
Why did you feel they shouldn't sell hardware?
They do seem to follow something of an every-other generation in terms of critical success for their consoles, at least starting with the N64:
+ N64
- GC
+ Wii
- WiiU
+ Switch
(I loved my gamecube, and it does have a few iconic games, but I don't kid myself how it compares to its neighbors in the timeline.)Hopefully they break that cycle with whatever comes next!
So the Switch is a merger of two branches Gameboy Advance -> DS -> 3DS N64 -> Gamecube -> Wii -> Wii U
And now these two markets have collapsed into the Nintendo Switch (which isn't a bad thing!)
Imagine the company that released Windows ME trying to convince you of their competency.
And when you look at the giant-ass (and noisy-ass) box and controllers that were the first Xbox, I'd argue that Nintendo weren't too far off laughing Microsoft out of the room. Of what little I know about Nintendo, there's no way they were sticking their name on that.
But then again, the my old console is still going strong. OTOH, my original Xbox refused to boot some years ago…
Each console or handheld Nintendo puts out follows a formula:
* Choose key components (CPU cores, screens on portables, etc.) that are two-to-five year-old, one-or-more generations-behind tech at design time, such that they're in wide manufacturing and easy to source as parts / cheap to license to build themselves.
* Add in novel in-house-developed IP cores/ASICs, which allow developers to build games that "do" a lot more than the key components would seem to allow.
* Wrap the whole thing in a novel interaction method that makes the console's hardware performance relative to its "console generation" kind of illegible (e.g. the Wiimote, the two screens of the DS, the portability of the Switch, etc.); which de-facto locks in games developed to target the hardware, making them much harder to port away; and which acts as a neato whizz-bang selling point in the form of enabling new "killer apps" (e.g. 3D first-person games with the N64 analog stick; Wii Sports with the Wiimote; Brain Training and other pre-smartphone "apps" with the DS stylus.)
Nintendo are at their best (i.e. most profitable) when they double down on this strategy, releasing a seemingly-new hardware "generation" that's really just the same existing hardware but with new/updated IP cores. The Gameboy Color is just an overclocked Gameboy with a better PPU. The Wii is just an overclocked Gamecube with an ARM coprocessor embedding wi-fi/bluetooth/SD card support. Etc.
The Switch is a departure from this strategy, in that the Tegra X1 wasn't actually all that old at the time of the Switch's release, and so likely bit into Nintendo's profit-margin on the Switch pretty heavily. I'm sure Nintendo would rather have used a slightly-older part. But there just wasn't anything like the Tegra X1 (in terms of GPU power per watt) until the Tegra X1 — no viable competitors, and no previous generation of the chip to lean on. And they were constrained by wanting to port Wii U games to the Switch, which demanded basically the X1's level of power.
But the N64 didn't suck. Neither did the Gamecube, which was superior in capability to Sony's sixth-gen offering (though not Microsoft's).
The idiomatic N64 approach to the same thing would have been to make the cutscenes with machinima; and to continue using short PCM audio samples for SFX and some instrument tracks in mostly-sequenced music, as was done in the latter half of the SNES's lifetime.
(What about images, e.g. textures? Even if you had created a huge world with a lot of different “stuff” in it, the textures wouldn’t have been a capacity problem either... because the N64 just didn’t have the memory to hold or render very large/detailed textures. In its architecture, it was detailed [for the time] meshes that were cheap to load/render, not detailed textures. That, combined with hardware support for Gouraud shading and a few other algorithmic effects, made “basic blocks of color with a few flourishes, over a well-made mesh” the only practical approach to 3D modelling for the N64. Which meant that a world with many unique 3D models could actually be quite cheap to store in ROM, as "basic block of color" textures were inherently reusable, and meshes themselves compress very well.)
Of course, this would never have worked for e.g. FF7, with its huge pre-rendered flat background scene textures; but imagine the FF7 we could have had on the N64. (The one that would look like the FF6 N64 demo, crossed with... Perfect Dark, maybe?)
Ironically, thanks to FPGAs we can now pirate cartridge games on the original hardware easily and without modification, while the situation with disc-based consoles is somewhat trickier. Meanwhile, physical console game distribution has swung back to solid-state media since optical discs simply can't match the capacity or speed.
Yes, a piece of junk telling a store staple that it was a piece of junk would have that effect
"Nintendo does not talk about confidential discussions with other companies. In any event, nothing came of these discussions."
> Okawa, who had loaned Sega $500 million in 1999, died on March 16, 2001. Shortly before his death, he forgave Sega's debts to him and returned his $695 million worth of Sega and CSK stock, helping the company survive the third-party transition.[188][189][190] He held failed talks with Microsoft about a sale or merger with their Xbox division.[191] According to former Microsoft executive Joachim Kempin, Microsoft founder Bill Gates decided against acquiring Sega because "he didn't think that Sega had enough muscle to eventually stop Sony."[192] A business alliance with Microsoft was announced where Sega develops 11 games for the new Xbox console.[193]
https://en.wikipedia.org/wiki/Sega#Dreamcast_and_continuing_...
I also don't think MS would have had much interest in all the other non-home-console-software businesses SEGA was involved in.
Could have been an organized crime/liability element too. The relationship they did end up having was fruitful enough.
EDIT - Well, looks like I was wrong.
Companies like FAAMG just grow and grow, to the point where they completely dominate markets in mono/oligopolies. This enables them to either buy up or destroy any kind of competition before it becomes noteworthy, cementing their positions for many decades. Not to speak of the political bargaining/lobbying power.
Regulators need to stop allowing corporations to expand into ever-more domains and become so dominant through shear measure of size and capital they can throw around.
Gaming is an interesting space here. Microsoft has become one of three major players. They are buying up big studios like Bethesda, and are pushing hard for a future where you don't own any games and can only rent them for playing on Windows, Xbox or via streaming.
Right now GamePass is an incredible deal, but things would look quite different if Xbox wasn't the underdog.
2. China is bent on expanding territory. It has border disputes with nearly all of its neighbors. https://asianews.press/2020/06/30/china-has-border-dispute-l...
3. China has threatened military action against western allies, like Taiwan.
4. China has repeatedly violated promises that its made, like the Hong Kong handover.
5. China steals sensitive technology and manufacturing plans from foreign companies. It has mandated that foreign companies establish joint ventures with Chinese companies to do business in China, with unrestricted access to all internal company documents and systems of the foreign company.
When stock price is all that matters, cutting costs wherever they think they can get away with it is the end result (over a long enough period, I'd assume this will always happen as execs cycle through)
As things (engineering, components, design, UX, etc) are cut, customers notice - and switch to brands that they percieve as having cut less. One example of this I'd assume is Apple.
Fascists value:
- corporatism
- nationalism
- "traditional values"
- masculinity / machismo
This guy is arguing that we've been straying from these (his) ideals, and corporations that don't stay domestic are part of a larger narrative of cultural decline.
In that period, the Japanese videogame market shrunk a great deal, and many Japanese developers either went out of business, merged, or courted western publishers.
https://www.gamasutra.com/view/news/222192/Japans_console_ga...
So I wouldn't have thought a Microsoft takeover attempt would have truly been laughed out the room at that time.
But Nintendo are a very unique company. Much like Ferrari in Italy.
Very few brands in the world like it. They would have found willing backers that cherished their independence.
Actually, PS4 launch in Japan was delayed 3 month from US/EU so the PS5 situation is a bit improved, but still complained.
Another complain for PS5 (and SIE US) is that they changed ○/×/△/□ button meaning. Previously ○ was assigned to OK and × was Cancel that's opposite to foreign edition. Now on PS5, its assignment is same as foreign edition but it feels very strange use of symbol for almost all Japanese people. It should be PSX's initial design failure.
> SCE in California are committed to eliminating toxic masculinity from their platform
I'd love to understand what you mean a little better here. I think I might have an impression from the themes of the God of War reboot, but I was curious if there's a Sony policy you might be able to reference and how that's influenced their first-party production. I'm having trouble understanding the overlap between anime-styled erotica and western depictions of masculinity.
EDIT: updated line spacing for readability
[1] https://www.neogaf.com/threads/flashback-sales-top-seeling-p...
[2] http://garaph.info/gamesearch.php?titleenglish=&stte=0&title...
[3] https://www.neogaf.com/threads/media-create-sales-04-06-04-1...