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Nintendo continues its development expansion with acquisition of long-time partner SRD

Bullet Club

Gold Member

Nintendo continues its development expansion with acquisition of long-time partner SRD​


The deal is the latest step in Nintendo’s plan to expand its internal development capabilities

Nintendo has acquired its long-established development partner SRD Co. Ltd.

SRD is a developer comprised of around 140 employees that while technically independent before now, has worked exclusively on first-party Nintendo software for 40 years and operates close to Nintendo’s Kyoto, Japan HQ.

SRD was founded in 1979 and has worked on games as far back as the original Donkey Kong, and contributed to virtually every major Nintendo franchises including Mario, Zelda and Animal Crossing.

Most recently, the company worked on Game Builder Garage, Ring Fit Adventure and 1-2-Switch.

In a statement published on Thursday, Nintendo said that SRD would “serve to strengthen the management base of SRD and secure the availability of software development resources for Nintendo”, in addition to improving the efficiency of its internal development.

The Acquisition is expected to close on April 1, 2022, pending approval.

Nintendo is currently enacting a plan to expand its internal development capabilities in Japan.

In November, the company stated that the Switch’s unexpected level of success had enabled it to invest in new business opportunities, including an $880m expansion of its game development capability.

During the same briefing, Nintendo president Shuntaro Furukawa said it would spend up to ¥100 billion yen ($880 million) expanding its internal game development and up to ¥50 billion yen ($440 million) growing its non-game entertainment software assets such as movies.

A month later, Nintendo appeared to have started construction of two major office expansions in Kyoto, Japan, reportedly in an attempt to create more games in-house, rather than outsourcing development.

The company is not traditionally active in mergers and acquisitions. Last year Nintendo acquired Canadian Luigi’s Mansion 3 developer Next Level Games – the company’s first buyout in more than a decade.

And recently president Shuntaro Furukawa reiterated that the company plans to grow its game development capabilities organically rather than through acquisitions.

It’s been forecast that the gaming market will hit a record $150 billion in M&A deals this year, but Kantan Games analyst Dr. Serkan Toto recently said he doesn’t expect Nintendo to play a major part in this.

“I really have a hard time imagining which of the big ones they could even be interested in buying,” he commented. “Nintendo will always stay Nintendo. The company has always relied on first-party games, and I don’t see any reason why they should change.”

Source: VGC


 

Moses85

Member
Jonah Hill Ok GIF


Laugh Reaction GIF by GIPHY News
 

BlackTron

Member
Nintendo bought a company whose only client was Nintendo for 40 years and is based near their Kyoto offices. This studio was already an exclusive asset of Nintendo in every way except for this final formality.

While technically an acquisition, I don't really feel this flies on the face of the CEO saying they aren't planning to buy anyone. This goes in hand with their getting more office space lately to do more in-house. They are expanding and restructuring in Kyoto to pump games.
 
Nintendo bought a company whose only client was Nintendo for 40 years and is based near their Kyoto offices. This studio was already an exclusive asset of Nintendo in every way except for this final formality.

While technically an acquisition, I don't really feel this flies on the face of the CEO saying they aren't planning to buy anyone. This goes in hand with their getting more office space lately to do more in-house. They are expanding and restructuring in Kyoto to pump games.
Their Kyoto office has always been inside the Nintendo building already.
 

Clear

Gold Member
Lets be real here. Nintendo don't really need to do anything! They are enormously successful, enormously profitable and don't really need to rely on any third-parties to continue that success.

What's more, they genuinely represent a unique offering within the game space, which makes them attractive to partners/product vendors who have "different" product of their own.

Not a Nintendo fan myself, but if you have half a brain about this business you just have to take your hat off to them. They are a terrific company, especially as although on one hand they are extremely conservative in terms of how they present themselves and the product both publicly and to business, they've never been shy about taking risks in order to keep themselves relevant. Yes, they have had a couple of notable failures over the years, but that's never seemed to dampen their desire to keep trying new ideas.
 

fart town usa

Gold Member
If it means faster development times, cool.

Sounds like it's just formal now so I don't really anticipate any changes with development times.
 

Chastten

Member
Why would Nintendo even have interest in buying From? Their target audience is completely different from the Souls audience. I'm not even a Souls hater, I like watching speedruns and stuff by pro gamers, very impressive stuff. Just completely different from what Nintendo does.

And to stay ontopic: makes sense to do buy them now, I guess. Ring Fit was a huge success and you never know who else would be in the market for a (hostile) takeover.
 
You guys might think this move is a bit goofy, but remember that Nintendo lost Rare simply because they didn't buy them out.
They may have learned a lesson since then about preventing other companies from buying your assets.
 

Shaqazooloo

Member
Tbh I thought they already owned them with how much they do for Nintendo already.

I wonder if they'll buy their other partners like Intelligent Systems and HAL.
 

Woopah

Member
Tbh I thought they already owned them with how much they do for Nintendo already.

I wonder if they'll buy their other partners like Intelligent Systems and HAL.
It all depends on the current management of those studios.

Nintendo bought Next Level Games because the owners wanted to sell. They probably bought SRD because current President Toshihiko Nakago is getting close to retirement and so will want to sell.

If IS or HAL ever wanted to get bought, I think Nintendo would pay up.
 

jaysius

Member
Probably preventing others to make a first offer and risk their (?) assets
Who the fuck would want super low rez, low poly assets anyway? Some shitty mobile game company?

If you did buy those assets it doesn’t mean you can make a Mario game…
that's not how this works seth meyers GIF by Late Night with Seth Meyers
 

Kataploom

Member
Who the fuck would want super low rez, low poly assets anyway? Some shitty mobile game company?

If you did buy those assets it doesn’t mean you can make a Mario game…
that's not how this works seth meyers GIF by Late Night with Seth Meyers's not how this works seth meyers GIF by Late Night with Seth Meyers
No, it means you can make games, and lol at your criteria, sure an investor wouldn't see an opportunity to get a Nintendo partner
 
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