Microsoft will acquire Activision Blizzard in a surprise purchase, and rumors have started to speculate that Xbox's parent company could make a bid to purchase Nintendo as well. Though Microsoft's purchase raised a few eyebrows, it is not quite as likely that the company will offer to purchase Nintendo. Microsoft's Activision Blizzard deal will complete in 2023, and it has sent shockwaves through the video game marketplace, raising questions about Activision Blizzard's games becoming more widely available and whether Microsoft will continue to purchase other companies. The software giant previously published ZeniMax Media in 2021, which led to Bethesda becoming an Xbox exclusive game studio, and it's possible more acquisitions could be on the way.
One of the main factors in Microsoft's purchase of Activision Blizzard is how the company is valued. Though the company has released some of the biggest titles in gaming, Activision Blizzard has recently experienced a torrent of bad press exposing allegations of a highly toxic workplace. Between its waning public reputation and the extensive library of games now belonging to Microsoft, Activision Blizzard appeared poised to make a deal with one of the largest tech companies in the world.
Nintendo, however, is in a category all of its own. Nintendo is estimated to be the fourth-largest video game company, behind Sony, Tencent, and Microsoft, according to their market cap values. Nintendo is unique, however, in that it is the only of those four companies that is solely focused on video games as its primary revenue source. The company produces Switch consoles, and holds exclusive rights to some of the most iconic names in gaming, like Mario, Zelda, and Metroid. With so many valuable assets to its name, it seems unlikely that Nintendo would be open to a future acquisition.
Nintendo Is Currently Too Valuable To Be Sold
Nintendo, as a brand, is currently in its prime. The release of the new OLED Switch in October of 2021 was immensely successful, and a new foldable Nintendo Switch model could be next in line. High-profile sequels to exclusive games, like The Legend of Zelda: Breath of the Wild 2, Mario Kart 9, and Pokemon Legends: Arceus, are almost guaranteed to dominate sales charts once they release. Essentially, with so many reasons for Nintendo to be a valued brand name, now and in the near future, it would be extremely difficult for Microsoft - or any other company, for that matter - to negotiate a purchase deal with Nintendo.
With Nintendo essentially safe from a buyout, Microsoft will continue to move forward with its acquisition of Activision Blizzard. Microsoft will inherit the company's allegedly abusive and discriminatory work environment, but could use the deal to change focus and improve working conditions at Activision Blizzard. Microsoft's Activision Blizzard deal could mean more exclusives for Xbox, like World of Warcraft. In the meantime, Nintendo will continue to thrive, almost like its own private Animal Crossing island.