Gaming Leak Reveals Phil Spencer's Ambitious Nintendo Acquisition Idea

Politics, News Sept. 19, 2023, 11:41 p.m.

In a major gaming leak, Xbox head Phil Spencers 2020 email proposed acquiring Nintendo, citing it as a prime asset. However, regulatory hurdles and Nintendos success made the idea implausible.

On September 19, a monumental gaming leak sent shockwaves through the gaming industry, targeting Microsoft and revealing a treasure trove of confidential plans for Xbox. This leak exposed intricate details ranging from upcoming game developments to a revamped design for the flagship Series X console, and even speculative pricing strategies regarding the integration of titles into Game Pass. One particular revelation of note was an August 2020 email penned by Xbox head Phil Spencer, in which he proposed an audacious idea: the potential acquisition of Nintendo.

This email was addressed to two high-ranking Xbox marketing executives, Takeshi Numoto and Chris Capossela, as first reported by The Verge. In this candid communication, Spencer laid out his vision, describing Nintendo as "THE prime asset" within the gaming industry and a viable candidate for purchase. He emphasized that gaming represented the most promising avenue for Microsoft's quest for consumer relevance, and he had engaged in discussions with Nintendo's Leadership Team (LT) to explore tighter collaboration. Spencer's email underscored his belief that such a move could be mutually beneficial, asserting, "Getting Nintendo would be a career moment, and I honestly believe a good move for both companies."

However, Spencer's proposition was far from realistic, even in 2020. By 2023, Nintendo had achieved unprecedented success, buoyed by the enduring popularity of the Nintendo Switch and the blockbuster success of The Super Mario Bros. Movie. In hindsight, Spencer's assertion that "Nintendo's future exists off of their own hardware" seemed misguided given the continued prosperity of the Switch, exemplified by the record-breaking sales of Animal Crossing: New Horizons just months prior to his email.

The notion of a Microsoft-Nintendo acquisition also raises complex questions about the practicality and implications of such a monumental deal. With Nintendo's substantial market share in the gaming industry, Microsoft would likely face intense scrutiny from antitrust regulators, especially in light of its recent acquisition of Activision Blizzard. The chances of regulatory approval for a Nintendo acquisition appear slim.

Ironically, this isn't the first time Microsoft has pursued Nintendo. In 2021, Bloomberg reported that Microsoft had contemplated acquiring Nintendo around the launch of the original Xbox in 2000. Kevin Bachus, then the director for third-party relations at Xbox, shared a humorous anecdote about their efforts, recounting that Nintendo's response was a dismissive fit of laughter, suggesting that a different outcome was inconceivable.

In the ever-evolving landscape of the gaming industry, such audacious proposals may arise, but the reality of acquiring a gaming giant like Nintendo remains distant and unlikely. The gaming world continues to watch with fascination as Microsoft navigates its path forward, seeking ways to reshape the industry while recognizing the enduring strength of its competitors.