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[drganon]

Microsoft have no interest in the shares themselves and never will. The shares are what enable Valueact to do the dirty work in the background.

Through this kind of methodology (which is the very "long game" Phil Spencer outlined) it's something that would gradually creep up on Nintendo over time.

Get a couple of people on the board to influence from within and before you know it they are welcoming the idea of Microsoft either purchasing them or entering into some kind of binding partnership which strips them of autonomy.

Unfortunately for Microsoft, their bullshit plans just got leaked.

 

[SRTtoZ]

"Good guy Phil".

 

[Gojiira]

Microsoft have no interest in the shares themselves and never will. The shares are what enable Valueact to do the dirty work in the background.

Through this kind of methodology (which is the very "long game" Phil Spencer outlined) it's something that would gradually creep up on Nintendo over time.

Get a couple of people on the board to influence from within and before you know it they are welcoming the idea of Microsoft either purchasing them or entering into some kind of binding partnership which strips them of autonomy.

Its not realistic though, Japanese law protects Nintendo. Japan would have to approve any purchase beyond 10% of the value of the company by a foreign entity. So soon as MS’s puppet reaches that point Japan would have to approve any further purchase.
This isnt me being a armchair lawyer either, you can easily lookup the list of protected companies in Japan.
So even if they force Nintendo into a unsustainable position, they still wouldn’t be able to purchase them.

 

[HarryKS]

Broski.... that's insider trading...

 

[Pelta88]

It's not just locker room talk. They're explicitly saying that they hope ValueAct/Mason Morfit will pressure Nintendo to use up their capital through market expansion, which will create an opportunity for Microsoft to acquire Nintendo when the latter has less cash on hand. It's much more nefarious than just wanting to acquire Nintendo. They want to forcibly create a situation where Nintendo fails through unsustainable growth and buy them up.

This is missed in a lot of the reports where they just focus on Phil hoping to acquire Nintendo. I think Microsoft having an actual plan to force Nintendo to fail is quite alarming and anti-competitive. It's leaning towards corporate sabotaging.

Needs to be stickied in the OP.

Bernoulli Add this to the OP for strategy context.

 

[ByWatterson]

This would kill the gaming industry as well know it.

Edit - this would take 1 to ~2 decades

What people fail to realize is that Nintendo is the only company making gaming consoles and games for the younger generation. It is Nintendo versus the garbage mobile gaming industry. By fighting this war, mostly alone, save for a few E for Everyone games from Ubisoft, etc, Nintendo allows kids to "get into gaming".

They then grow up and play the other consoles with their Teen and eventually Mature games.

If Nintendo dies, so does the industry as we know it. And if MS buys them, it WILL die. Look at their track record.

This is a really amazing take.

 

[GHG]

Its not realistic though, Japanese law protects Nintendo. Japan would have to approve any purchase beyond 10% of the value of the company by a foreign entity. So soon as MS’s puppet reaches that point Japan would have to approve any further purchase.
This isnt me being a armchair lawyer either, you can easily lookup the list of protected companies in Japan.
So even if they force Nintendo into a unsustainable position, they still wouldn’t be able to purchase them.

The puppet doesn't need to buy any more shares than necessary to make some noise and get some people on the board. They already have enough.

For reference when Valueact were being used to get Ballmer out they held less than 1% of Microsoft's shares:

ValueAct takes $2 billion Microsoft stake: CNBC

Activist investor ValueAct Capital has taken a $2 billion stake in Microsoft Corp, CNBC reported on Monday, helping Microsoft shares climb to a seven-month high.

www.reuters.com

 

[ScHlAuChi]

1. Because in the United States the regulator might have to argue their case before a judge who son works for Microsoft.

Why would this only be an issue in the US?
Microsoft an american company buying Activision another american company still triggered international regulation!

2. Because shares are traded on the open market. Not in Japan, specifically.

And that would override an intervention from the japanese goverment how?

 

[OmegaSupreme]

To those saying Sony would buy Nintendo if they could... What's your evidence of that? We have direct evidence from MS themselves both 20 years ago and today that they want Nintendo. Nothing from Sony.

 

[Katatonic]

Yet Nintendo is always quick to sign deals with MS. They're gonna create a Golem.

 

[Saber]

Lol....buying 'everything'. Let me guess ....you are a Playstation-only player and can't afford an Xbox.

You know this is about Nintendo, right warrior?
Only a full retard would defend Microsoft in this case.
Like, one could advocate a multi-billion company buying everything and the only stupidity you can throw is "Playstation", even though we are talking about Nintendo.

 

[DragonNCM]

Leave Nintendo alone Phil.....
You already have half industry best studios & you can't do single descent AAA game.
You don't have to ruin another good company.

 

[Fake]

Only a delusional would believe this.

 

[Tams]

let me get my pie chart

Hopefully you find the One Pie one day.

 

[DryvBy]

Phil's disgusting way of doing business has made me consider selling my Xbox Series X and being done with them until he's gone. How on Earth anyone supports this guy who's went two generations with just a handful of games.

 

[SenkiDala]

If MS were spending those resources on putting out the best console on the market and pushing out 90+ bangers every three to six months, no one would care. Gamers would be eating better than ever. That is how market competition is supposed to work: you win by delivering the best products to the market. MS and XBOX have decided that's too much like hard work, so instead of developing studios and building mindshare for their IPs, they've decided to buy massive catalogs of IPs and developers (that have always been mostly platform agnostic) and wall them off for their own platforms.

Not only are they bringing nothing new to the industry (or even their own platform), they're also taking stuff away from others and - in the console space - sequestering it to the least popular of the three platforms, where it will enjoy less success overall. The only people excited about it are those who share Phil Spencer's same single-minded determination to see XBOX dominate at any cost.

While I agree about NO they should't get ABK or of course Nintendo (I don't even know how those fucking regulators can let the ABK deal happen), I disagree about they are bringing nothing to gaming.

If you talk about now : I agree, if you talk about in general no. They democratized online on consoles (with party chat, etc), HDD on consoles, achievements, XBLA games brought the rise of the indie games on consoles (and in general) so no they didn't bring "nothing", let's not exaggerate.

 

[blakdecaf]

Imagine a Japanese giant actually agreeing to this? More chance of a merger with Sony! (Or more likely, Tencent!)

Nintendo games on Gamepass would be the most probable outcome if they get desperate...

 

[DragonNCM]

Phil's disgusting way of doing business has made me consider selling my Xbox Series X and being done with them until he's gone. How on Earth anyone supports this guy who's went two generations with just a handful of games.

But....but.....Game Pass?

 

[Evil Calvin]

You know this is about Nintendo, right warrior?
Only a full retard would defend Microsoft in this case.
Like, one could advocate a multi-billion company buying everything and the only stupidity you can throw is "Playstation", even though we are talking about Nintendo.

Yeah I know...but only Sony fans tend to get triggered, not Nintendo fans. I own all consoles so I don't care. But's it's hilarious when Sony fans lose their shit so easily.

 

[Synless]

Hopefully Nintendo gets to see this leaked memo, that’s some shady shit,

 

[Tams]

It's all greed and pride, isn't it?

There's no reason for all this. The market can sustain Sony, Nintendo, and Microsoft (who also have lots of the PC market), as well as mobile gaming.

But no, that's not enough for dear Phil. He wants it all and is prepared to see it all burn.

 

[tryDEATH]

I don't think straight up buying them would be necessary, but a controlling stake while Nintendo keeps its independence much like ZeniMax and ActiBlizz is something MS might offer them if they are serious. Nintendo in its current form doesn't need MS or the money that MS would throw at them, the only possible scenario would be if Nintendo has some grander aspirations were some serious financial backing would be necessary, which I can't imagine right now. This is just wishful thinking, but that is what trillion dollar companies as money is no problem for them.

 

[BbMajor7th]

While I agree about NO they should't get ABK or of course Nintendo (I don't even know how those fucking regulators can let the ABK deal happen), I disagree about they are bringing nothing to gaming.

If you talk about now : I agree, if you talk about in general no. They democratized online on consoles (with party chat, etc), HDD on consoles, achievements, XBLA games brought the rise of the indie games on consoles (and in general) so no they didn't bring "nothing", let's not exaggerate.

My comment about them bringing 'nothing new' is in reference to the acquisitions specifically, which I think is pretty obvious - it's the whole thrust of the thread. Bringing up legacy stuff like this apropos of nothing just sounds like damage control.

 

[Audiophile]

While Sony makes some larger acquisitions, I prefer the way they generally acquire smaller studios and help build them up over long periods of time. And most of their larger acquisitions have predominantly been PS-centric studios to begin with, so I don't feel like they're robbing the wider consumer base on other platforms. Xbox's approach as of late just seems to be acquiring industry juggernauts because they have the MS cashflow to back them.

While shuttering Evo Studios and killing off Driveclub is something I'll never forgive Sony for. For the most part, their handling of studios just seems more admirable. They nurture them and build them; while MS is just like a rich kid in the candy store who never really put the work in to begin. Not to mention, there seems to be a real benefit to games being exclusive to PlayStation hardware, whereas with Xbox, pretty much everything looks like any other multiplat game.

MS just own studios, while PS seems like it's part of the DNA of its studios.

 

[Solidus_T]

I’m sorry, wasn’t part of the reason the ABK deal was allowed to happen was because Microsoft said they weren’t pursuing a monopoly?!

Anyone who believed them is a fool.

 

[Team Andromeda]

Xbox going 3rd party has a higher chance of happening than them ever acquiring Nintendo.

Both aren't going to happen.

SEGA next Wednesday mind

 

[drganon]

Both aren't going to happen.

SEGA next Wednesday mind

Your obsession with Microsoft buying Sega is almost as retarded as Phil's plan to buy Nintendo.

 

[DeepEnigma]

Fuck this guy.

 

[HTK]

I don't want Microsoft buying/owning Nintendo nor do I believe this is a plausible scenario to be honest.

However, I believe they are correct and Nintendo should get out of the hardware business and sell their games on all platforms.

 

[Fabieter]

Hopefully Nintendo gets to see this leaked memo, that’s some shady shit,

Absolutely it shows why we shouldn't defend any of those big companies but essentially not defend multi trillion dollar companys.

 

[BbMajor7th]

That some thread title...






They said many times that they can't wait this kind stuff to leak, when it leaks they say "oh, not this one"

The neo-liberal face of Resetera is there for all to see. Progressive social politics to the hilt, but smug handwaving and both-sides bullshit when it comes to calling out corporate America. Meanwhile, on NeoGAF (the so-called den of right-wing, pro-market conservatives) you've got the majority of people actually calling out the indefensible.

 

[DanielG165]

Lmao could you imagine that? I’m an Xbox fan, but I’m also a Nintendo and PlayStation fan, Sega etc. If Microsoft were to hypothetically purchase Nintendo, the video game industry as we know it would implode, and I doubt that’s hyperbole on my part. This is why you shouldn’t personalize nor cheerlead for mega corporations, MS, Sony, Nintendo, any of them.

They are in the game to make as much money as possible, and will do anything to see to that. Give them props when they do something good, but otherwise, keep them at a distance. They don’t know nor care about you.

 

[SenkiDala]

My comment about them bringing 'nothing new' is in reference to the acquisitions specifically, which I think is pretty obvious - it's the whole thrust of the thread. Bringing up legacy stuff like this apropos of nothing just sounds like damage control.

No, English isn't my mother tongue and I don't practice it as much as I used to do, so I thought maybe you were talking about Xbox in general.

 

[Saber]

Yeah I know...but only Sony fans

Again with Sony?
Spare me this idiocity , if this warrior shit is the only crap you can say then my talk with you is done.
Nintendo being bough by anything is already a huge mistake. Microsoft buying it is the absolute worst of it.

 

[Trunx81]

 

[dotnotbot]

Its not realistic though, Japanese law protects Nintendo. Japan would have to approve any purchase beyond 10% of the value of the company by a foreign entity. So soon as MS’s puppet reaches that point Japan would have to approve any further purchase.
This isnt me being a armchair lawyer either, you can easily lookup the list of protected companies in Japan.
So even if they force Nintendo into a unsustainable position, they still wouldn’t be able to purchase them.

But it's not going to be just one puppet.

 

[HeWhoWalks]

Both aren't going to happen.

That's ..... the point.

 

[Adam_802]

Reason #78474628293 why Microsoft are the Cancer of the gaming industry. They don’t wanna create anything worthwhile or add to gaming, they just want to buy and gobble up everything. A shitty company to be honest. It’s why I’ve never really believed the “good guy Phil” bullshit and Kumbaya talk from Phil all these years. I can see right through their bullshit.

No company or person that cares about gaming would want Nintendo to go broke or bankrupt. The guys over at MS are truly assholes that don’t give a shit about this hobby of ours.

lmao

cringe

 

[Drell]

Lol....buying 'everything'. Let me guess ....you are a Playstation-only player and can't afford an Xbox.

Tell me you're a brainless lobotomized MS workshipper without telling me you're you're a brainless lobotomized MS workshipper

 

[nial]

To those saying Sony would buy Nintendo if they could... What's your evidence of that? We have direct evidence from MS themselves both 20 years ago and today that they want Nintendo. Nothing from Sony.

SonyWouldToo™

 

[Evil Calvin]

Tell me you're a brainless lobotomized MS workshipper without telling me you're you're a brainless lobotomized MS workshipper

I have an Xbox, PS5, Switch, Steamdeck and even a Playdate. I worship no console or publisher. Just amazing how childish the Sony worshippers are (you).

 

[Drell]

I have an Xbox, PS5, Switch, Steamdeck and even a Playdate. I worship no console or publisher. Just amazing how childish the Sony worshippers are (you).

I don't own any Sony console thank you.

But as someone told you earlier, you prove being a warior by coming back to Sony when it is not the subject at all.

lmao

cringe

Ok Zoomer

 

[Jen_yakzua]

Its not realistic though, Japanese law protects Nintendo. Japan would have to approve any purchase beyond 10% of the value of the company by a foreign entity. So soon as MS’s puppet reaches that point Japan would have to approve any further purchase.
This isnt me being a armchair lawyer either, you can easily lookup the list of protected companies in Japan.
So even if they force Nintendo into a unsustainable position, they still wouldn’t be able to purchase them.

Probably why Microsoft is tryed to get Japan to low their financial security as I would allow them to aquire Japanese companies

 

[Solidus_T]

How many people are still going to defend Microsoft and say that they are not trying to monopolize gaming?

 

[TerribleAtThisGame]

Phil Spencer must've been one of those kids whose parents never told him no.

 

[ThaMonkeyClaw]

This could actually be a good thing and would make Nintendo titles prevalent on home consoles again. I hope this goes through.

Maybe Nintendo needs to buy Xbox to make them prevalent in the home console market again...

 

[Thyuda]

How many people are still going to defend Microsoft and say that they are not trying to monopolize gaming?

A lot. Microsoft has one of the dumbest hardcore fanbases there is, at least on the internet.

It's insane what they're willing to defend.

 

[Gojiira]

Probably why Microsoft is tryed to get Japan to low their financial security as I would allow them to aquire Japanese companies

Doesnt work like that, MS have no authority over Japan and their policies. Nintendo is a protected company, if Japan says no that is final.
Something America as a whole needs to learn, they dont supercede the laws of another country no matter how much they think they do.

 

[VideoGameEnjoyer]

Phil Spencer sucks, and he's a bad businessman.

 

[tkscz]

How would this benefit Nintendo?