In a series of leaked emails from 2020, Phil Spencer, Microsoft’s Head of Xbox, expressed a keen interest in obtaining Nintendo, a gaming massive worth $85 billion. The emails have been part of a larger set of documents that got here to mild in the course of the Federal Trade Commission (FTC) vs. Microsoft lawsuit.
This suit centered around Microsoft’s proposed $69 billion acquisition of Activision Blizzard. The correspondence between Spencer and Microsoft’s executive vice president and chief commercial officer, Takeshi Numoto, revealed that acquiring Nintendo would be a “career moment” and mutually beneficial.
The lawsuit also unveiled Microsoft’s aggressive approach to dominate the next generation of gaming. According to leaked documents, Microsoft plans to launch refreshed versions of its Xbox Series S and Series X consoles in September and November 2024, respectively.
The Xbox Series X update, codenamed Project Brooklin, will feature a new cylindrical design, a 2TB storage drive, faster Wi-Fi, and a revamped Xbox controller with motion controls and a swappable, rechargeable battery. The Xbox Series S, codenamed Ellewood, will also have faster Wi-Fi, a 1TB storage drive, and reduced power consumption.
Phil Spencer shows interest in acquiring Nintendo and Valve.
Spencer’s interest in Nintendo is not a mere whim but a well-considered strategy. According to the leaked emails, Spencer had multiple conversations with Nintendo’s leadership team about tighter collaboration. The challenge lies in Nintendo’s strong financial position and a board of directors that has been historically resistant to aggressive market growth or stock appreciation.
Valve, another gaming behemoth valued at $10 billion, was also mentioned in Spencer’s emails. Microsoft’s board of directors had seen a full write-up on both Nintendo and Valve and would fully support an acquisition if the opportunity arose. Valve, known for its Steam storefront, could be another lucrative acquisition target for Microsoft, given its influence in the PC gaming market.
Spencer acknowledges that there are better moves than a hostile takeover for Microsoft. Instead, they are playing the long game, waiting for the right opportunity. Interestingly, former Microsoft board member Mason Morfit has been acquiring shares of Nintendo, which could “create opportunities” for Microsoft in the future.
The leaked emails have added another layer of intrigue to the gaming industry as Microsoft is in the process of Acquiring Activision Blizzard, raising questions about Microsoft’s future acquisition plans. Acquisition of either Nintendo or Valve would be monumental. The leaked documents in the course of the FTC trial have revealed a lot of insider details that Microsoft would’ve wanted to be confidential.