Nintendo, one of the biggest and oldest gaming companies, has made an acquisition for one of its closest development partners. The past few months have seen some huge buying, of course, with Take-Two buying Zynga, Sony buying Bungie, and biggest of all, Microsoft’s planned takeover of Activision Blizzard King.
There has been speculation that Nintendo may be forced to do its own shopping in light of these recent industry consolidations. But the Japanese veteran has traditionally not been too big on such deals. Now, it looks like Nintendo has made a decision in order to secure one of its longest running partners.
As reported by Games Industry Biz, Tokyo-based SRD Co. is headed by Toshihiko Nakago and has been a close Nintendo partner for nearly 40 years. SRD has worked with Nintendo on some of its biggest and most important titles including Donkey Kong, Super Mario Bros and The Legend of Zelda on Famicom/NES. Their most recent project was last year’s Game Builder Garage on the Nintendo Switch.
In an official announcement, the company said that this agreement “will serve as SRD’s management basis and ensure the availability of software development resources for Nintendo.” As analysts have observed, Nintendo rarely makes acquisitions. “Nintendo’s greatest asset is its intellectual property and this is what shapes its M&A philosophy and why it is extremely selective in its investments,” commented Daniel Ahmad, senior analyst at Niko Partners.
Last year, Nintendo acquired Vancouver-based Next Level Games, the studio that developed Luigi’s Mansion 3. With this latest buyout, Nintendo has made SRD Co. a wholly-owned in-house studio, and the deal is expected to be completed April 1. , 2022. No figures were disclosed on the amount exchanged for the deal.
This latest acquisition is “in line with previous Nintendo acquisitions. Usually studios have direct experience + proven track record of working with Nintendo IP,” Ahmad wrote. on Twitter. Meanwhile, Games Industry Biz explored how ongoing industry consolidation will likely push Nintendo to “secure its most valued partners”.
Next: Why Pokemon Go Developer Niantic Is Worth More Than Ubisoft And CD Projekt
The future is healthy and exciting.
About the Author