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With increased profits this generation, is it possible Nintendo will invest in a new studio?

Cinemikel

Cinemikel

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Oct 25, 2017
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Edit: Thank you Mods!

Genuine question

Since the Switch has become a huge hit and Nintendo has been gaining more and more revenue from Switch, software, and mobile sales, will they invest in growing their software studios?

The most disappointing thing will be for them to just sit on it and not grow (studio wise). I'm sure they'll make more marketing deals and raise brand awareneed like the Universal theme park and whatever. But will they invest in forming more developer teams?

Nintendo has been known to never acquire developers unless under VERY specific circumstances like Monolith Soft.

More software for your platform creates more confidence in the consumer to buy and support your platform, which would also open up much more potential software and accessory purchases. More consumers means a bigger install base.
A bigger install base would create confidence in other software developers to develop for your platform, thus they and Nintendo would make more money.

In the end though, will we ever see Nintendo invest in new studios and/or development teams from their large scale success?
 
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Ephonk

Ephonk

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Oct 25, 2017
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Nah, I can see them building a more robust support team for third parties (helping with api/indies/manuals/translation/engines/porting), let SPD work with third parties using Nintendo IP and growing Monolith Kyoto as their HD texture/object creation studio for internal projects though. It has been their strategy for the last few years and seems to work well for them.
 
PCPace

PCPace

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I think they probably have just about the right amount of studios right now given they are converging handheld and console development. For additional titles they are better off funding individual projects from third parties or lending out IP in joint ventures.
 
byDoS

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Oct 25, 2017
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I'd like Nintendo to buy Greezo or Armature.

Wet dream: Blue Point
 
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Deleted member 5535

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I doubt it. And it's not like they need, they have a bunch of partnership with different companies.
 

Deleted member 2340

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I definitely think it's possible just to expand on their portfolio of ips. Few weeks ago I think there was talk of Nintendo trying to get 3rd parties to bring over their mature games to expand their library so I've been thinking since them maybe they'll eventually go out and acquire a studio that can create a new mature ip they own.
 
bytesized

bytesized

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I wish they would start a new division with more mature games. I wonder the kind of games we would be getting from them if they'd be able to develop freely and not be restricted by kiddy looking games or light hearted stories.
 
AndrewDean84

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Maybe, but it seems more likely to partner up with existing teams outside of the Nintendo umbrella. If anything, that's more likely to happen, as all teams are hands on deck with the Switch already.
 
Argot

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They absolutely should, imho. I'm certainly not personally getting anything from the billions of dollars they have squirreled away over the years and would love to see at least some of that reinvested in new studios. I'm not holding my breath, though.
 
Akita One

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They just reorganized their whole studio structure before the Switch launched. I think they will let their current studios grow organically and increase funds available to them based on the game they are working on. They are also more willing to use other devs as "2nd parties", where Nintendo publishes the game (Mario vs Rabbids, Pokken, the Bethesda games)...so you will see more stuff like that.
 
Legitmcfalls

Legitmcfalls

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I dont think money was ever an issue for Nintendo even during the WiiU years. So Its doubtful they invest in buying studios. I hope they see the issue studios are having trying to port games to the Switch and focus money and resources into assisting studios getting their games onto the Switch.
 
TheDinoman

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Akita One said:
They just reorganized their whole studio structure before the Switch launched. I think they will let their current studios grow organically and increase funds available to them based on the game they are working on. They are also more willing to use other devs as "2nd parties", where Nintendo publishes the game (Mario vs Rabbids, Pokken, the Bethesda games)...so you will see more stuff like that.
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Mario + Rabbids was published by Ubisoft.
 
Echizen

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Kimishima was asked about this at the investor Q&A a few weeks ago. Due to the fact that Nintendo's cash reserves declined by hundreds of billions of yen in the years prior to Switch's launch, he doesn't consider their current cash reserves very high (even if they hit their very good projection for the fiscal year). He made it sound like their cash reserves would need to grow a fair bit more before they seriously start considering acquisitions.
 
Beje

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Gridlock said:
I definitely think it's possible just to expand on their portfolio of ips. Few weeks ago I think there was talk of Nintendo trying to get 3rd parties to bring over their mature games to expand their library so I've been thinking since them maybe they'll eventually go out and acquire a studio that can create a new mature ip they own.
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They do have Eternal Darkness. Wasn't Geist a Nintendo IP as well?
 
Madao

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i don't think there's gonna be much of a difference. the same thing was said when the Wii took off and they didn't make any new development groups with that extra cash.

byDoS said:
I'd like Nintendo to buy Greezo or Armature.

Wet drem: Blue Point
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what is even the point of buying a studio of people that wanted to get away from them? if the people there still wanted to work with Nintendo, they'd still be at Retro.
 
Instro

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There was an answer from Kimishima at a Q&A recently about what they are doing with their cash assets, and he mentioned M&A as a possibility. I think this kind of stuff is on the table, and all of their studios are hiring as well.
 
Buffer

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switch is a success, so they won't

desperate Nintendo is the best Nintendo (Same with Sony, and even MS)
 

Dark Cloud

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They need to grow Retro Studios. Just grow another western studio to create new IP's that Nintendo doesn't make like an Uncharted type of game.
 
CopperPuppy

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I think we'll see some movement. Whether that means an acquisition or an entirely new venture is the million-dollar question. Interesting times for sure though.
 
byDoS

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Madao said:
i don't think there's gonna be much of a difference. the same thing was said when the Wii took off and they didn't make any new development groups with that extra cash.



what is even the point of buying a studio of people that wanted to get away from them? if the people there still wanted to work with Nintendo, they'd still be at Retro.
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I don't believe they left Retro in order to don't work with Nintendo anymore. They seem to be the kind of studio that, with some guidance, would fly very high.
 
Instro

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Ryoma said:
Kimishima was asked about this at the investor Q&A a few weeks ago. Due to the fact that Nintendo's cash reserves declined by hundreds of billions of yen in the years prior to Switch's launch, he doesn't consider their current cash reserves very high (even if they hit their very good projection for the fiscal year). He made it sound like their cash reserves would need to grow a fair bit more before they seriously start considering acquisitions.
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Must have missed this one. I guess that answers the question for the time being.
 

Deleted member 1413

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They have quite a lot of studios working for them and Nintendo EPD cranks out a lot of software (ARMS, BOTW, Mario, Splatoon 2 all this year)
Buying studios could result in bleeding talent, and I'm pretty sure Nintendo doesn't want to make it a habit of shutting down studios when they hit a rough patch.
supershort said:
Hard to say, with Kimishima in the lead things might be different. https://twitter.com/cartridgegames/status/864979097881071616?lang=en
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...oh
 
Madao

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byDoS said:
I don't believe they left Retro in order to don't work with Nintendo anymore. They seem to be the kind of studio that, with some guidance, would fly very high.
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still, if Nintendo bought them, they'd be in the exact same situation as they were when they worked at Retro and they didn't like that. they can be great with some guidance but it doesn't look like Nintendo is the one they want guiding them.
 

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I think they`ll just continue to partner with other studio that will fit the bill for whatever game they need (Ex: Action games they`ll hire platinum for the job). I do want to know the reason why they bought monolithsoft if any one can provide?
 

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byDoS said:
I'd like Nintendo to buy Greezo or Armature.

Wet dream: Blue Point
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Grezzo is working with the Zelda IP. Not sure they need to buy them since they seem pretty happy with the opportunity given to them.
Buying Armature is a terrible idea. Haven't put out anything of note since their creation. They gutted RETRO studios ruining them as well.
 
OP
OP
Cinemikel

Cinemikel

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I remember that old Q&A. Was it from the April Q1 shareholders meeting?

When it comes to M&A, Nintendo I don't think usually considers studios. It's usually manufacturers, business partners, etc. Like a while ago they did that $100 million dollar acquisition didn't they? And didn't that turn out to be the amiibo manufacturer? Idk.

I want them to expand west but Nintendo just doesn't like spending money. But they desperately need that IP variety that western studios could give them. Racing games, more larger scaled action adventure franchises, shooters, etc. They lack western focused games a ton
 
Dyle

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Doubt it, given their recent internal reorganization. I imagine they would much rather invest in expanding/improving their internal teams than seek out riskier external companies
 

Nintex

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They just put up a new HQ a few years back, set-up satellite studios to aid their main workforce such as 1-UP Studios and expanded existing dev houses such as Intelligent Systems.
Nintendo is growing on a year by year basis.

The only thing I can see happening is that they buy an entire publishing house that plays a big part in their renewed success.
Like finally close the deal on Namco/Bandai which seemed inevitable ever since the first buy-out rumors started in the GameCube era.

Nintendo like Disney is focused on IP and Namco/Bandai has some very valuable IP's.
Although the current arrangement with Nintendo outsourcing work to Namdai as opposed to owning them might reduce the buy-out risk for Namdai.
 
Dark Ninja

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They should focus on making sure their handheld teams have enough people to work on Switch without issue.
 
blondkayvon

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Cinemikel said:
I remember that old Q&A. Was it from the April Q1 shareholders meeting?

When it comes to M&A, Nintendo I don't think usually considers studios. It's usually manufacturers, business partners, etc. Like a while ago they did that $100 million dollar acquisition didn't they? And didn't that turn out to be the amiibo manufacturer? Idk.

I want them to expand west but Nintendo just doesn't like spending money. But they desperately need that IP variety that western studios could give them. Racing games, more larger scaled action adventure franchises, shooters, etc. They lack western focused games a ton
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Do they, though? Nintendo has fully embraced or dipped their toes in almost every single genre, especially in the last few years. I think Nintendo might be better served to let Western devs fill the gaps left by Nintendo first-party stuff. We don't want Nintendo to cannibalize third party sales on their platform.
 

Deleted member 1413

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I do think they should invest in a western studio. Maybe a european one?
RETRO seems to be struggling and I guess we'll see what's up with Next level.
 
eseqko

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Would like if they invested in either buying or creating a Western Studio (either US or European). I get the feeling that something like that might attract Western 3rd parties to the Switch since 1 or 2 Western based games may pad the release schedule especially since Retro seems to put out one game out every 3-4 years.
 
byDoS

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Cartridge Games said:
Grezzo is working with the Zelda IP. Not sure they need to buy them since they seem pretty happy with the opportunity given to them.
Buying Armature is a terrible idea. Haven't put out anything of note since their creation. They gutted RETRO studios ruining them as well.
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I liked Recore a lot. My Armature suggestion wasn't very good, as I can see.

¯\_(ツ)_/¯
 
ArmadilloGame

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The question is why? Why is 1st party better than contracted exclusives from 3rd, which Nintendo has been doing a lot lately? It's higher profit but higher risk to grow a new studio, and Nintendo is a conservative company.

I wouldn't be surprised if they diversify their studio portfolio this gen though. Now is the time when it would make the most sense. They committed to a fast pace of releases and are feeling optimistic with their position. Their catalog could clearly use more mature and more western developed titles though. If they find an existing studio worth acquiring that checks those boxes, I could see them pulling the trigger. Someone like IO Interactive if their solo venture goes sour.

I could also see Nintendo bailing out and buying Capcom if they ever reach rock bottom, which is unlikely but possible. Or an internal house growing and getting split into two.
 
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