[HN Gopher] Microsoft tried to buy Nintendo, but got laughed out...
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       Microsoft tried to buy Nintendo, but got laughed out of the room
        
       Author : alexrustic
       Score  : 148 points
       Date   : 2021-01-07 15:56 UTC (7 hours ago)
        
 (HTM) web link (www.engadget.com)
 (TXT) w3m dump (www.engadget.com)
        
       | alex_reg wrote:
       | Regardless of how this went, I see the mega-corp development over
       | the last 10+ years as very concerning long-term.
       | 
       | Companies like FAAMG just grow and grow, to the point where they
       | completely dominate markets in mono/oligopolies. This enables
       | them to either buy up or destroy any kind of competition before
       | it becomes noteworthy, cementing their positions for many
       | decades. Not to speak of the political bargaining/lobbying power.
       | 
       | Regulators need to stop allowing corporations to expand into
       | ever-more domains and become so dominant through shear measure of
       | size and capital they can throw around.
       | 
       | Gaming is an interesting space here. Microsoft has become one of
       | three major players. They are buying up big studios like
       | Bethesda, and are pushing hard for a future where you don't own
       | any games and can only rent them for playing on Windows, Xbox or
       | via streaming.
       | 
       | Right now GamePass is an incredible deal, but things would look
       | quite different if Xbox wasn't the underdog.
        
       | Jonnax wrote:
       | So this was back around the year 2000.
       | 
       | Imagine the company that released Windows ME trying to convince
       | you of their competency.
        
         | Grazester wrote:
         | Well to their defense they also released Windows 2000 the year
         | 8 months before that.
        
         | jhare wrote:
         | People forget how deep the hatred for Microsoft was at this
         | time
        
       | dmitriid wrote:
       | Nintendo isn't a perfect company by any means. But the are the
       | only console/gaming company that keeps thinking outside the box.
       | 
       | Sony and MS: let's build a gaming PC and just have a different
       | enclosure for it.
       | 
       | Nintendo: what if we try <any number of crazy and interesting
       | ideas>.
       | 
       | Also: a few days ago a friend of mine got stuck with shitty
       | mobile internet for e few days. The only gadget that _by default_
       | assumed there 's no internet and just kept on working with no
       | problems was Nintendo Switch. Everything else (phones, consoles,
       | readers etc.) just couldn't imagine a world without an internet
       | connection and would suffer when connectivity was
       | bad/intermittent.
        
         | topkai22 wrote:
         | Microsoft presented a pretty fairly innovative vision of what a
         | "game" console could be with the original Xbox One launch
         | announcement. It was a complete debacle.
         | 
         | I'm also pretty impressed with XBox game pass- it has changed
         | my relationship with gaming. I've been gaming with my XBox than
         | my Switch because its reduced the friction of accessing high
         | quality console games, and I've been trying more indie games
         | because they are just there.
         | 
         | Not the sort of hardware innovation you are talking about, nor
         | is Microsoft a first mover in the game subscription space, but
         | still important I think.
         | 
         | Disclaimer- I'm a Microsoft employee, but not working on
         | anything near gaming, and my opinions are my own.
        
         | bitwize wrote:
         | > Nintendo: what if we try <any number of crazy and interesting
         | ideas>.
         | 
         | This is called "lateral thinking with withered technology", an
         | engineering principle articulated by Gunpei Yokoi. In Yokoi's
         | day, the rationale for "withered technology" was that it was
         | cheaper and much easier to second-source, meaning that a
         | shortage from a single supplier wouldn't hold up the production
         | run.
         | 
         | It wasn't until fairly recently (Wii and later) that Nintendo
         | realized that participating in the red queen's race of ever-
         | increasing console specs was going to get them trounced by
         | megacorporations with much more cash to burn selling consoles
         | at a loss, so they had to pivot to producing cheap hardware
         | with unique value adds in order to get the console profitable
         | fast.
        
         | dvfjsdhgfv wrote:
         | > Nintendo: what if we try <any number of crazy and interesting
         | ideas>.
         | 
         | I've just discovered Warioware Smooth Moves and man, was it
         | fun! A great way to spend time with friends in these sad times.
        
         | recursive wrote:
         | Have we forgotten about Kinect so soon?
        
           | dmitriid wrote:
           | Kinect okay, but looks like MS sort of just gave up on it.
           | And now smartphones have it beat in terms of capabilities. So
           | it could've become smaller, faster and more capable, but the
           | window of opportunity passed.
        
             | recursive wrote:
             | They pushed it pretty hard, but people hated it. They tried
             | for several years before scrapping it though. To my
             | chagrin. I was excited about it.
             | 
             | I haven't seen any phone stuff that's similar to the
             | capabilities of kinect. VR is the closest thing in the
             | current crop that I can see.
        
               | dmitriid wrote:
               | Phones can detec motion, objects, faces and quite easily
               | and surrisingly reliable considering how small their
               | cameras are. Kinect could probably be great, but alas.
        
               | recursive wrote:
               | If you put your phone far enough away to capture your
               | movements, I don't think you'd be able to play a game
               | like fruit ninja. It's a different form factor.
        
         | nolok wrote:
         | They also always made money, didn't sell console at a loss.
         | Even a "failing" n64 or GameCube was net positive for Nintendo
         | from day 1, and every year until end of service. They weren't a
         | company in need of help.
         | 
         | And if they joined, Microsoft is not the company that would
         | have let them drop everything for the Wii (strange to say after
         | the fact given kinect and stuff, but those were followers of a
         | known success move), or again for the switch
        
         | silicon2401 wrote:
         | The internet dependency angle is a good point to bring up, and
         | incidentally it's why I've gotten into data hoarding or
         | purchasing products that don't require the internet. Like you
         | said, I can use my Switch or even my Kindle without any
         | problem. I also play most games via emulation or buy them from
         | GOG, which gives you completely DRM-free downloads, making it
         | possible to just boot up a game like the old days.
         | 
         | I do have game pass, and the experience has been a constant
         | reminder for why I hate a lot about the modern gaming world
         | (with the exception of Switch, like you said). Often times when
         | I just want to sit down and play a game, I instead have to jump
         | through a series of hoops: download xbox update > update xbox >
         | download game update > update game. For added fun, once in a
         | while you even have to update your controller. Meanwhile I've
         | never updated a switch game and always have a pleasantly plug
         | and play experience.
        
         | anotherman554 wrote:
         | Sony is at least willing to invest in VR which is thinking
         | outside the box of traditional gaming.
        
         | tastyfreeze wrote:
         | Nintendo is also the only one of the bunch selling their
         | hardware for profit. MS and Sony now have to maintain selling
         | hardware at a loss to keep up the perception of advancement.
        
           | claytonjy wrote:
           | As I recall this has been true of at least MS and Sony (maybe
           | even Nintendo?) for several console generations, though after
           | a few years they've been able to bring costs down into
           | profitability. Is that not expected for this generation?
        
             | tastyfreeze wrote:
             | As far as I know Nintendo hasn't ever sold hardware at a
             | loss. That is not the way they do business. Of course there
             | wont be a source from MS or Sony on the matter.
             | 
             | https://www.cinemablend.com/games/1644500/how-much-money-
             | nin...
             | 
             | https://metro.co.uk/2020/09/10/xbox-series-x-and-xbox-
             | series...
             | 
             | PS Nothing really wrong with a loss leader to draw
             | customers. The problem with the console being a loss leader
             | is MS and Sony have to perpetually build consoles that are
             | loss leaders to show "advancement" that keeps customers. It
             | also makes them reliant on subscriptions and software sales
             | to maintain profitability. So, they are incentivized to
             | lock customers in or they will lose profitability.
        
         | city41 wrote:
         | It's a double edged sword though. The gimmicks Nintendo comes
         | up with can make their games not as good as they otherwise
         | would have been. The Wii motion control for Zelda sword attacks
         | and the touch screen levels in Super Mario 3D World come to
         | mind.
         | 
         | Also all of Nintendo's mobile games require an internet
         | connection to play.
         | 
         | Just playing devil's advocate. I am a huge Nintendo fan.
        
           | majewsky wrote:
           | > the touch screen levels in Super Mario 3D World
           | 
           | Hey, now, those are _vital_ to the jumpless challenge run:
           | https://www.youtube.com/watch?v=ahyd-tw2s0Q
        
       | arbitrage wrote:
       | There are very few details in the article beyond what is already
       | in the headline. Fluff.
        
         | wging wrote:
         | Yes, but the source they link to is quite extensive and
         | interesting:
         | https://www.bloomberg.com/news/features/2021-01-06/xbox-the-...
        
           | ulysses wrote:
           | Thank you. I think Nintendo's quote from that article is even
           | funnier:
           | 
           | "Nintendo does not talk about confidential discussions with
           | other companies. In any event, nothing came of these
           | discussions."
        
       | unixhero wrote:
       | Too low price then.
        
       | hhkb wrote:
       | Think one of the key advantages Japanese (and other East Asian)
       | companies have over the US/EU counterparts is that they have very
       | strong national sentiments. You saw this with Nissan debacle.
       | Same with a couple of Korean companies. All the more reasons to
       | believe that the Chinese market is simply a mirage for Western
       | companies.
        
         | wassenaar10 wrote:
         | Perhaps westerners could learn a thing or two from this
         | attitude.
        
           | sidlls wrote:
           | We definitely should learn it: and treat those with
           | adversarial intent (China) as the enemy they are.
        
             | yhoneycomb wrote:
             | What makes you think China has adversarial intent? Or are
             | you just feeling insecure at the fact that white people may
             | no longer be at the top?
        
               | theandrewbailey wrote:
               | 1. China does not share liberal values. They have been
               | genociding Uighurs for many years.
               | 
               | 2. China is bent on expanding territory. It has border
               | disputes with nearly all of its neighbors.
               | https://asianews.press/2020/06/30/china-has-border-
               | dispute-l...
               | 
               | 3. China has threatened military action against western
               | allies, like Taiwan.
               | 
               | 4. China has repeatedly violated promises that its made,
               | like the Hong Kong handover.
               | 
               | 5. China steals sensitive technology and manufacturing
               | plans from foreign companies. It has mandated that
               | foreign companies establish joint ventures with Chinese
               | companies to do business in China, with unrestricted
               | access to all internal company documents and systems of
               | the foreign company.
        
               | sidlls wrote:
               | The other comment in response covers it, mostly. To your
               | second question: the first thing that comes to mind about
               | China is "did it happen in modern China or Nazi
               | Germany?", not "oh noes whites are not in charge there!"
        
           | mywittyname wrote:
           | American companies used to have this attitude. I have always
           | wondered what changed.
        
             | 29083011397778 wrote:
             | I suspect a comment above you spelled it out: corporations
             | value stock price too highly.
             | 
             | When stock price is all that matters, cutting costs
             | wherever they think they can get away with it is the end
             | result (over a long enough period, I'd assume this will
             | always happen as execs cycle through)
             | 
             | As things (engineering, components, design, UX, etc) are
             | cut, customers notice - and switch to brands that they
             | percieve as having cut less. One example of this I'd assume
             | is Apple.
        
               | pqhwan wrote:
               | That's an interesting take, but I was making a different
               | point. Corporations will always do what's necessary to
               | thrive, and what they need to thrive is largely a
               | function of what society demands. If the corporations are
               | taking down their nationalist trappings, then it's
               | because we no longer demand them. As far as my globalist
               | politics is concerned, that's good and well.
        
             | Shlobster200107 wrote:
             | Erosion of traditional values through marxism, feminism
             | etc. Japan is still holding but not for long.
        
               | bantunes wrote:
               | Are you serious?
        
               | danbolt wrote:
               | Perhaps you could elaborate a bit? I'm not sure I follow
               | how Marxism and Feminism eroded values to change Western
               | business practices.
        
               | rrrrrrrrrrrryan wrote:
               | For the people lost about the connection:
               | 
               | Fascists value:
               | 
               | - corporatism
               | 
               | - nationalism
               | 
               | - "traditional values"
               | 
               | - masculinity / machismo
               | 
               | This guy is arguing that we've been straying from these
               | (his) ideals, and corporations that don't stay domestic
               | are part of a larger narrative of cultural decline.
        
               | earthscienceman wrote:
               | What? Are you suggesting that a lack of fealty to
               | corporations is a result of the rise of feminism and
               | marxism? Could you give more detail on these connections?
        
               | kaybe wrote:
               | Isn't it more a lack of fealty _from_ corporations?
        
             | pqhwan wrote:
             | It became unnecessary for survival.
        
         | bitwize wrote:
         | Eh, maybe in the past but not so much today. Sony is being
         | effectively run from California, which means that their
         | standards for appropriate game content are being decided
         | according to San Francisco, and not Tokyo, values. The PS5 is
         | doing worse than any previous Sony console in the Japanese
         | market as a result.
        
           | danbolt wrote:
           | What do you feel Tokyo's values would be? Bring Kutaragi back
           | and revisit new/different CPU architectures?
        
             | bitwize wrote:
             | Eroge make up a large part of the market in Japan, like it
             | or not -- and SCE in California are committed to
             | eliminating toxic masculinity from their platform, even if
             | it means leaving yen on the table.
        
               | danbolt wrote:
               | I did some quick Google searches for the best-selling
               | PlayStation 1, 2, and 3 games in Japan as those consoles
               | were spearheaded by Tokyo. [1][2][3] I didn't see very
               | many Eroge games. I do agree that they're a notable
               | market, especially compared to the west, but they strike
               | me as more niche than a cornerstone genre like action
               | games.
               | 
               | > SCE in California are committed to eliminating toxic
               | masculinity from their platform
               | 
               | I'd love to understand what you mean a little better
               | here. I think I might have an impression from the themes
               | of the _God of War_ reboot, but I was curious if there 's
               | a Sony policy you might be able to reference and how
               | that's influenced their first-party production. I'm
               | having trouble understanding the overlap between anime-
               | styled erotica and western depictions of masculinity.
               | 
               | EDIT: updated line spacing for readability
               | 
               | [1] https://www.neogaf.com/threads/flashback-sales-top-
               | seeling-p...
               | 
               | [2] http://garaph.info/gamesearch.php?titleenglish=&stte=
               | 0&title...
               | 
               | [3] https://www.neogaf.com/threads/media-create-
               | sales-04-06-04-1...
        
           | rossmohax wrote:
           | The PS5 reached the highest launch month sales in US history
        
             | bitwize wrote:
             | I meant to say that the PS5 was doing more poorly _in
             | Japan_ than any previous Sony console, and have edited my
             | comment to reflect this.
        
               | esperent wrote:
               | That might have more to do with the state of the Japanese
               | economy this year than the location of Sony headquarters.
        
               | dynamite-ready wrote:
               | It's actually been a long standing trend since the start
               | of the PS3/Xbox360 generation. Iirc Sega had to merge
               | with Sammy to weather the storm. Especially after losing
               | so much money in the previous generation on the
               | Dreamcast.
               | 
               | In that period, the Japanese videogame market shrunk a
               | great deal, and many Japanese developers either went out
               | of business, merged, or courted western publishers.
               | 
               | https://www.gamasutra.com/view/news/222192/Japans_console
               | _ga...
               | 
               | So I wouldn't have thought a Microsoft takeover attempt
               | would have truly been laughed out the room at that time.
               | 
               | But Nintendo are a very unique company. Much like Ferrari
               | in Italy.
               | 
               | Very few brands in the world like it. They would have
               | found willing backers that cherished their independence.
        
           | dynamite-ready wrote:
           | I'd been interested in this. I primarily wonder if videogames
           | have the same cultural weight in Japanese society anymore.
        
             | wil421 wrote:
             | From what I see on my Nintendo switch they are interested
             | in different types of games. PC and consoles games seem to
             | be more action. Nintendo has a ton of more old school types
             | of games like JRPGs and platformers. There are also some
             | creepy Japanese games I see, not sure what's the game play
             | is like. I can't even describe what they are other than
             | having flirty Anime type girls.
        
         | dynamite-ready wrote:
         | Is that necessarily a good thing though? Sure you'd want to co-
         | opt a national identity, when it's suitable. But imagine if all
         | the Silicon Valley era companies doubled down on their national
         | identity at any point in their history...
        
           | AnHonestComment wrote:
           | Could you elaborate?
           | 
           | I'm curious what you believe would have happened if Silicon
           | Valley companies doubled down on a US identity.
        
           | hhkb wrote:
           | I certainly don't believe it's good or bad. It's more of a
           | cultural phenomenon. US is also a cultural melting pot and
           | they benefit a great deal from being open commercially as
           | well.
        
       | rhacker wrote:
       | I used to be of the opinion that Nintendo should just get out of
       | the hardware market and just sell Mario/Zelda/etc... on XBox/PS.
       | While I wouldn't mind if they did that, the switch has me
       | completely convinced they should never get out of hardware.
        
         | bloodorange wrote:
         | They held the record for number of handheld consoles sold at
         | various times and at one point of time, the GBA was the most
         | sold gaming console ever. Usually the hardware also holds up
         | well and has good resale value too. Their games are timeless
         | and run only on their hardware (with few exceptions). Their
         | hardware is sold at a profit.
         | 
         | Why did you feel they shouldn't sell hardware?
        
         | mschuetz wrote:
         | Yeah, the switch was the first and last console I bought since
         | the PS2. The value proposition of a combined console and
         | handheld, coupled with lots of nice games made it well worth
         | it. On the other hand, I'm no longer interested in the
         | Playstation series due to lack of backwards compatibility. I've
         | still got lots of PS1 and PS2 games but no more PS2. If the PS6
         | will support them, I'd get it. Otherwise, not.
        
         | mankyd wrote:
         | I remember back around 2003 when a friend told me that the
         | gamecube would/should be Nintendo's last piece of hardware, (I
         | had recently purchased a used one).
         | 
         | They do seem to follow something of an every-other generation
         | in terms of critical success for their consoles, at least
         | starting with the N64:                 + N64       - GC       +
         | Wii       - WiiU         + Switch
         | 
         | (I loved my gamecube, and it does have a few iconic games, but
         | I don't kid myself how it compares to its neighbors in the
         | timeline.)
         | 
         | Hopefully they break that cycle with whatever comes next!
        
           | wincy wrote:
           | The Switch is a different thing than what came before,
           | though, because it represents the merging of their Gameboy
           | and TV Console systems into a single machine. It's sort of
           | miraculous that it worked out so well. Since the original
           | Gameboy they've had the mobile gaming market cornered
           | absolutely. Even with the rise of cell phones the "good"
           | games aren't there. You can't play The Witcher 3 on your
           | Samsung Galaxy Tablet even if ostensibly it's very similar,
           | hardwarewise, to the Switch. Interestingly, Nvidia tried to
           | make the Nvidia Shield as something like this, but failed and
           | I think uses the same/similar GPU chips in the Switch now.
           | 
           | So the Switch is a merger of two branches Gameboy Advance ->
           | DS -> 3DS N64 -> Gamecube -> Wii -> Wii U
           | 
           | And now these two markets have collapsed into the Nintendo
           | Switch (which isn't a bad thing!)
        
           | jolmg wrote:
           | The WiiU wasn't as big an innovation as the Wii, but I found
           | the touchscreen controller in the WiiU to enable better
           | participation of a less-dexterous little kid in family
           | gameplay without them being such a drag on the adults'
           | gameplay. Those types of households might have found it a
           | more valuable upgrade than others.
        
         | j_m_b wrote:
         | I agree. The switch is really an amazing piece of hardware. I
         | can be playing on my TV and just pull out the switch and
         | continue playing if someone wants to watch something. Nintendo
         | has been innovating gaming hardware for years. Microsoft would
         | have pretty much said "make CPU go BRRR" and left it at.
        
           | jolmg wrote:
           | The multiple Nintendo Labo kits are also an amazing show of
           | the versatility of the Switch hardware. From hand-joystick,
           | to motorcycle handles or a steering wheel with levers, turn-
           | switches, pull-crank and pedal, a piano, fishing rod, etc.
           | The controllers can be augmented to so many forms with just
           | some cardboard and software. No need for specialized
           | controllers like before.
           | 
           | Its ability to accommodate 2 players with a single control-
           | set is also amazing.
        
       | m3kw9 wrote:
       | "They just laughed their asses off," Bachus said to Bloomberg.
       | "Like, imagine an hour of somebody just laughing at you. That was
       | kind of how that meeting went."
       | 
       | Yes, a piece of junk telling a store staple that it was a piece
       | of junk would have that effect
        
       | nether wrote:
       | Fun fact: Nintendo of America and MSFT are both headquartered in
       | Redmond.
        
         | swebs wrote:
         | This is correct. I don't know why its flagged.
        
       | emptyparadise wrote:
       | I wonder why they didn't buy Sega.
        
         | anonymousab wrote:
         | Late 90s, Sega of Japan probably had too much pride for that.
         | Afterwards, if MS was still interested, perhaps Sammy's offer
         | was more compelling overall.
         | 
         | I also don't think MS would have had much interest in all the
         | other non-home-console-software businesses SEGA was involved
         | in.
         | 
         | Could have been an organized crime/liability element too. The
         | relationship they did end up having was fruitful enough.
         | 
         | EDIT - Well, looks like I was wrong.
        
         | AdmiralAsshat wrote:
         | They thought about it:
         | 
         | > Okawa, who had loaned Sega $500 million in 1999, died on
         | March 16, 2001. Shortly before his death, he forgave Sega's
         | debts to him and returned his $695 million worth of Sega and
         | CSK stock, helping the company survive the third-party
         | transition.[188][189][190] He held failed talks with Microsoft
         | about a sale or merger with their Xbox division.[191] According
         | to former Microsoft executive Joachim Kempin, Microsoft founder
         | Bill Gates decided against acquiring Sega because "he didn't
         | think that Sega had enough muscle to eventually stop
         | Sony."[192] A business alliance with Microsoft was announced
         | where Sega develops 11 games for the new Xbox console.[193]
         | 
         | https://en.wikipedia.org/wiki/Sega#Dreamcast_and_continuing_...
        
         | dustinmoris wrote:
         | Because they laughed Microsoft in the face, too. :P
        
       | tristor wrote:
       | I think many people over-focus on GPU and CPU capabilities and
       | the raw horsepower of console hardware as the basis for
       | determining console hardware superiority. As an avid gamer on PC
       | and console, I've never thought of it that way, a PC will pretty
       | much always be better on horsepower than a console. What consoles
       | excel at is hardware that enhances the user experience or moves
       | forward the technology focused on the act of gaming.
       | 
       | I am incredibly happy that Nintendo said "No." to Microsoft here,
       | because the Nintendo Switch is the single greatest console device
       | ever made. The way it handles docking/undocking, game switching,
       | updates, sleep, the controller design of the removable joycons,
       | it's an unprecedentedly good user experience in a way that's
       | going to be incredibly difficult to top. I have been interminably
       | sad that Sega stopped making consoles because prior to the
       | Switch, the Dreamcast pushed the envelope in every possible way
       | for what it meant to be a gaming console. The Xbox One did
       | something great by improving controller design significantly, but
       | realistically the majority of consoles released in the last few
       | decades have not been pushing the envelope in the way that the
       | format allows.
        
         | wil421 wrote:
         | My only complaint is the switch has low resolution and many of
         | the ports do not run that well. Skyrim and Witcher 3 are ports
         | I didn't buy because of the graphics. The Final Fantasy ports
         | were decent but they were older games that had remakes in
         | between. Dark Souls has decent reviews but I haven't played the
         | originals, remakes, or ports.
         | 
         | When a beefier switch comes along I'm jumping on it. The switch
         | has been the funnest and most engaging gaming I've had in a
         | decade.
        
       | [deleted]
        
       | yosser wrote:
       | Of course Microsoft bought Rare Ltd., so I guess they thought
       | they might as well acquire some Nintendoish IP one way or
       | another.
        
       | nixass wrote:
       | Imagine if this happened. Japanese, traditional, inovative, and
       | somehow slow/reasonable paced company, who basically invented
       | gaming as we know it, versus typical American quarter-to-quarter
       | profit chasing MBA clueless zombies, who made no progress in
       | gaming, invented nothing, but rather trying to buy competitors.
       | Ridiculous
        
         | viridian wrote:
         | A lot of Nintendo's business decisions in 2019 and 2020 seem
         | like the exact types of decisions empty suits make though, and
         | their glassdoor reads very similarly to one of the big banks.
         | Nintendo has, with the exception of the switch hardware and
         | possibly labo, played the entire decade in a very conservative
         | fashion. Microsoft and Sony aren't exactly innovative
         | powerhouses either, but even they beat out Nintendo in
         | innovation on the software side.
         | 
         | If you want real innovation in the industry though, you
         | basically have to play indie games.
        
         | sangnoir wrote:
         | I'm glad Microsoft didn't get the chance to buy Nintendo and
         | _Nokia_ it.
        
       | danpalmer wrote:
       | Nintendo is a 132 year old company (111 at the time this
       | happened), with a "war chest" of $10 billion. They've been
       | successful for far longer than Microsoft have existed.
       | 
       | I don't know what Nintendo would get out of being acquired, and
       | I'm not certain that Microsoft would be able to put together a
       | convincing acquisition deal.
        
         | Mountain_Skies wrote:
         | To me the interesting play would be to acquire Nintendo, move
         | the Xbox division into the Nintendo division, and then spin
         | that off into a new independent gaming company. Might be good
         | for shareholder value in the end and put Microsoft in a better
         | position to focus on their core enterprise cloud business while
         | receiving fair value for its Xbox assets.
        
         | dtech wrote:
         | > Nintendo is a 132 year old company (111 at the time this
         | happened), with a "war chest" of $10 billion.
         | 
         |  _Now_ they are successful, after the huge hits of the Wii, DS
         | and Switch. Even with that the company was in a lot of trouble
         | during the Wii U period in 2014, with executives taking 50% pay
         | cuts.
         | 
         | When this played out in 2000 it was during the N64 era, with
         | GameCube being close to launch. While those were not failures
         | per se, they were very, very far behind the PSOne and PS2 in
         | terms of popularity.
        
           | stopFalse wrote:
           | They have successfully brainwashed a generation. Fanboys
           | think every Zelda game is the greatest of all time.
           | 
           | I understand why Nintendo thinks they are in a strong
           | position. They can sell low quality games and the people
           | don't know better.
        
           | AnIdiotOnTheNet wrote:
           | _Everything_ lagged far behind PS1 &2. Many even predicted
           | the death of PC gaming during the PS2 era, so great was its
           | dominance. PS2 still outsold PS3 for a long time after the
           | latter console was released. Nintendo survived that era, Sega
           | did not (as a console manufacturer).
        
         | SilasX wrote:
         | You could probably cite similar figures about Netflix and
         | Blockbuster when the former approached them.
        
           | paxys wrote:
           | Netflix didn't approach Blockbuster to acquire it, but rather
           | to get acquired.
        
         | jbob2000 wrote:
         | Nintendo would hopefully become higher quality under Microsoft,
         | that's what they'd get out of it. Microsoft has shown they can
         | culture a good developer ecosystem, Nintendo is awful for third
         | party developers. Nintendo also struggles with new technology,
         | their systems are always a step behind and they were critically
         | late to having games on the app stores (the extreme success of
         | Pokemon Go after a decade of thinking smartphones weren't worth
         | it is an egg on the face of the Nintendo leadership).
         | 
         | They really just have a strong brand, that's about all Nintendo
         | has going for it. Microsoft can steward the brand like they did
         | for Minecraft and it wouldn't lose any value, we'd just get
         | higher quality games and hardware.
        
           | bloodorange wrote:
           | Nintendo made so many brilliant games in the Mario franchise.
           | Likewise with Zelda (and Metroid and there will be more if
           | you look closely). Their consoles are typically robustly
           | made. The controller-drift issue with Switch being a notable
           | recent exception.
           | 
           | As for their systems being "behind", the xbox and playstation
           | motion sensing controllers came _after_ the Nintendo Wii made
           | them popular. The Switch came with a new idea of a console
           | which is both a handheld and one connected to a television.
           | The 3DS came with a lenticular 3D display. Unless you measure
           | being ahead/behind in the sole axis of computational power,
           | they are setting trends and taking gaming to new places.
           | 
           | They are a serious pain when it comes to how they hound
           | fanmade products which might feature any of their IP, have a
           | substandard system for online play, or a poor developer
           | experience but being of sub-par quality is definitely more in
           | microsoft's department than Nintendo's.
        
             | jbob2000 wrote:
             | It's not good for a platform developer to be the only one
             | making killer games. This is a lack of diversity that is a
             | weakness. The titles you mention are the only good
             | franchises on Switch, third party titles have not had the
             | same success. Meanwhile, Microsoft has had huge third party
             | success for their platform with Call of Duty and other
             | publisher titles.
             | 
             | No doubt Nintendo has been innovative with the control
             | schemes for their systems, but nothing has really stuck.
             | The 3D display was a gimmick, they even released a second
             | version without it because it was so gimmicky.
             | 
             | I'm not impressed with making a robust console in 2020 as a
             | selling point. I have an iPhone, my expectations for
             | robustness are higher now. The Switch is cheap and clunky
             | and the screen is low res. Great, it can handle falls -
             | welcome to 2005 electronics.
        
               | squeaky-clean wrote:
               | > It's not good for a platform developer to be the only
               | one making killer games.
               | 
               | [Citation Needed]. Nintendo has clearly earned a
               | reputation for first party games above any other
               | manufacturer. Nothing really competes with their first
               | party games like BotW, Animal Crossing, Smash Bros, and
               | so on.
               | 
               | I can get Call of Duty on PC, Xbox, Playstation. I don't
               | really see how that's a compelling case for the Microsoft
               | platform. The latest Xbox seems better than the PS5 in my
               | opinion on hardware and price, but the PS5 still seems
               | like a better buy because they have exclusive games and
               | the Xbox Series s/x does not.
               | 
               | I'd say among gamers it's pretty universally agreed that
               | the Switch is not a competing console with
               | PC/Xbox/Playstation. It's an "And" console. You don't get
               | a switch as an alternative to one of the above consoles,
               | you get it as a supplement to the others. Unless you're a
               | casual gamer, in which case you probably just get the
               | Switch.
        
               | filoleg wrote:
               | Fully agreed. Nintendo has a very differentiated market
               | of game offerings on their platforms, and that's the
               | reason people buy it. They don't buy Switch for the
               | (underpowered compared to competitors) hardware, or
               | something else.
               | 
               | That's imo the biggest problem Xbox console is facing.
               | Does it have good third party games? Plenty. Does it make
               | sense to buy Xbox if you already own a PS4/PS5 or a
               | gaming PC? Not really, since the overlap of third party
               | games available on all of them is giant. The only game I
               | know people care about that is Xbox exclusive is Halo
               | series. I don't know a single person who owns a
               | PS4/PS5+Xbox or even gaming PC+Xbox. I know tons of
               | people owning a PC+PS4/PS5, and I know a ton of people
               | who own either a PS4/PS5+Switch or gaming PC+Switch (or
               | all 3 of them). And that's Nintendo's unique offering,
               | being an incredible complement to other consoles, not a
               | direct competitor, while also being a great product of
               | its own that doesn't just function as an add-on.
               | 
               | Mind you, I am not saying that Nintendo shouldn't
               | increase the number of third party games present on their
               | platform, quite the opposite. The increase of third party
               | games on Switch is a really welcome development. However,
               | under no circumstances should they decrease the number of
               | first party games, otherwise they would end up in a
               | losing position.
        
               | ThrowawayR2 wrote:
               | > " _[Citation Needed] Nintendo has clearly earned a
               | reputation for first party games above any other
               | manufacturer._ "
               | 
               | https://www.businessinsider.com/nintendo-reliance-on-
               | first-p...
               | 
               | I mean this isn't controversial within the games
               | industry. Having diverse sources of revenue matter to
               | support themselves if their first party games take a
               | stumble for whatever reason is critical. It's not like
               | Nintendo hasn't had downturns in the past, e.g. the Wii U
               | era.
        
               | imbnwa wrote:
               | Maybe it handles falls so your phone doesn't have to?
        
           | ionwake wrote:
           | I disagree with most of your points and your conclusion.
           | Especially the "create a good developer ecosystem". You
           | provided no examples either, which makes me think you have
           | never been involved with Microsoft as a member of the game
           | development community. My experience, was poor. To say the
           | least.
        
             | jbob2000 wrote:
             | I'll look for the article to link here (which I probably
             | initially read on HN) but it was a blog post that described
             | a developer's experience slogging through Nintendo docs and
             | working with Nintendo and it being very slow and difficult.
             | He went on to describe that he had none of these problems
             | when dealing with Microsoft (and to a lesser extent Sony).
        
               | ionwake wrote:
               | Ah I remember. Thanks for the reply sorry if I sounded
               | too negative.
        
         | subsubzero wrote:
         | As a huge fan of Nintendo I am glad this never happened. A few
         | years later Nintendo released the Wii console which was
         | revolutionary in allowing users to go beyond a physical
         | joystick and incorporate movements in videogames.
         | 
         | Also companies acquired by microsoft don't usually have a happy
         | ending(layoffs, product stagnation) see - skype, linkedin,
         | yammer etc
        
         | im3w1l wrote:
         | 132 year old? So are some random family restaurants. How does
         | $10bil of money matter either way? Microsofts market cal is
         | north of $1T, while Nintendos is less than $100B. And finally
         | the question is not what Nintendo would get out of it. The
         | question is what _their shareholders_ stand to gain.
        
           | thedmstdmstdmst wrote:
           | $10 bil of money means Nintendo has all the money they need
           | on hand to continue to develop for their markets or new
           | markets so what impetus is there to be acquire or merge?
           | Nintendo is not a very big company comparatively.
        
             | im3w1l wrote:
             | Ah, merging to get access to money, yes I suppose they
             | don't need that. My uneducated guess is that the reason for
             | a merger would rather be merging the xbox with the switch,
             | and merging the game libraries too. Can't say I know
             | whether that's a good idea.
        
           | jcelerier wrote:
           | > The question is what their shareholders stand to gain.
           | 
           | thankfully, not the whole world thinks like that.
        
             | JoeAltmaier wrote:
             | In a sentimental way, I guess so. But if Nintendo is a
             | public company, they probably committed some kind of
             | fiduciary wrong in not consulting their stockholders.
        
               | [deleted]
        
               | ChrisSD wrote:
               | They don't have to consult stockholders in order to make
               | business decisions. They just have to be honest with
               | them.
        
               | daniellarusso wrote:
               | I feel this is more of an American capitalistic
               | perspective.
        
             | ksk wrote:
             | Why is that so bad? Shareholders are the owners of the
             | company.
        
               | Ma8ee wrote:
               | It's a common misunderstanding that the only purpose of a
               | company is to make shareholders happy.
        
               | greatgirl wrote:
               | It's not a misunderstanding its how companies work. If
               | you make shareholders unhappy you simply risk them
               | leaving. Thats why on average companies do things that
               | make them happy. Oh, also the shareholders pick the board
               | and the board does things for the company. You can see
               | the relationship now?
        
               | Ma8ee wrote:
               | I know how companies are governed, and it is of course an
               | empirical fact that most large listed American companies
               | are run to maximise stockholder value. But that does not
               | mean that it is the purpose of all, or even most
               | companies. People run companies with a variety of
               | reasons, including things like having fun or making the
               | world a better place. More importantly, companies have
               | moral obligations not only to stock holders, but to the
               | employees, the environment, and the communities they
               | operate in.
        
               | ksk wrote:
               | You're right - that is a misunderstanding. I think you
               | accidentally replied to the wrong comment seeing as I
               | didn't say or imply that.
        
               | epistasis wrote:
               | Shareholders are known for optimizing for short-term
               | liquidity or value gain, because even if some
               | shareholders have a long-term view, shorter-term holders
               | can buy in and force their views.
               | 
               | However, in many cases this is in direct conflict with
               | much larger value growth that requires a longer
               | investment term. Or in conflict with valuing greater
               | long-term stability over a quick short-term gain.
        
               | ksk wrote:
               | Yeah, that's how the game works. Its like democracy -
               | people can and do vote for idiots.
               | 
               | When you accept outside funding in exchange for shares,
               | control gets shared. Honestly, do we really need to
               | debate this?
        
               | epistasis wrote:
               | You are the one who asked why it was bad. Why ask a
               | question if you _don 't_ want to know or debate it? Was
               | it purely rhetorical?
        
               | ksk wrote:
               | No, what I'm saying is not up for debate is the fact that
               | control gets shared when you take someone else's money.
               | Its a known framework in which everyone operates.
               | 
               | Your "shareholders are known for" is simply a BS talking
               | point. Every person who has a 401K is probably a
               | shareholder somewhere. All those hundreds of millions of
               | people value long term stability too. Nintendo is not a
               | penny stock.
        
               | im3w1l wrote:
               | It's a different thing to say "I value long term
               | thinking" and acting that way, and rewarding long term
               | thinking. It may be that people are simply too stupid to
               | see that the ship is being hacked up for fuel, and thus
               | they put their faith in the captain doing so.
        
             | bitwize wrote:
             | Yes, and especially not Nintendo, which was a family-owned
             | company at the time. Imagine Papa Gino's going to a family
             | pizzeria offering to buy them out and being told "no, and
             | also fuck you".
        
               | ChrisLomont wrote:
               | Hiroshi Yamauchi took Nintendo public in 1962. He was the
               | largest shareholder until his death in 2013. In 2008 he
               | owned 10% of the shares, and as of 2020, all japanese
               | individuals total share was under 5% [2].
               | 
               | Here's a financial statement from 2000 [1].
               | 
               | I can find no evidence Nintendo was a family-owned
               | company at any point in recent history. Have a source
               | showing even majority shareholder status by some family
               | combined?
               | 
               | [1] https://www.nintendo.co.jp/ir/pdf/2000/001122e.pdf
               | 
               | [2] https://www.nintendo.co.jp/ir/en/stock/information/in
               | dex.htm...
        
               | speeder wrote:
               | Just to add on that... the original founder put a rule in
               | the company that it must remain a family business, to the
               | point that when they didn't had a heir, the guy adopted
               | someone and gave him the family name, to keep the family
               | going.
               | 
               | Only reason the company is not with a family CEO right
               | now, is because the last family CEO personally gave the
               | greenlight to the shift, because he genuinely believed
               | Iwata (the person that would replace him) was more
               | skilled than he was at managing the company... Yet seemly
               | he still paid close attention to the company even after
               | retiring.
               | 
               | Right now the children of the last CEO that theoretically
               | own Nintendo biggest share block, but seemly nobody is
               | sure of that, only information I found is that seemly one
               | of them sold the shares to Nintendo itself (thus
               | increasing the shares the other members had of Nintendo,
               | percentage-wise).
        
         | mywittyname wrote:
         | > I don't know what Nintendo would get out of being acquired,
         | 
         | Money. Old companies are merged, acquired, or spun-off all the
         | time.
         | 
         | It's completely possible that Nintendo would prefer to spin off
         | portions of their business which, while profitable, no longer
         | align with their primary markets. Consider companies like
         | General Electric; they started off producing equipment around
         | electric power generation, installation, and use (lightbulbs
         | and appliances), then they got into television, radio,
         | computing, jet engines, health insurance, etc. Over the years
         | they've spun off many of these divisions and today's GE looks
         | nothing like OG GE.
        
           | stakkur wrote:
           | Japanese corporate operations are quite different,
           | historically, than the US. For example, Japan has over 33,000
           | companies that are over 100 years old. Many are several
           | hundred years old. The oldest is around 1300 years old, I
           | think. Continuously operating.
           | 
           | Obviously most of these are not 'technology' companies, but
           | the culture of corporate creation/destruction/merger is
           | somewhat different.
        
             | SEJeff wrote:
             | One of the things that really sets them apart is
             | Keiretsu[1]. Seemingly competing firms often work together
             | for their common benefit in the name of Keiretsu. It is
             | very "foreign" and strange from a US cultural standpoint,
             | but it is also why so many Japanese companies last as long
             | as they do.
             | 
             | [1] https://en.wikipedia.org/wiki/Keiretsu
        
               | Danieru wrote:
               | It is important to note that the Keiretsu are split
               | vertically, no two companies within a keiretsu should be
               | direct competitors.
               | 
               | At least such was the case. A major counter example is
               | Mitsui and Sumitomo. The Mitsui and Sumitomo banks
               | merged, which triggered partial merges of other Keiretsu
               | companies: except the real estate. Mitsui Real Estate and
               | Sumitomo Real Estate still operate as competitors. Both
               | developing new housing complexes and office towers.
        
           | Impossible wrote:
           | Nintendo did sell a business that didn't align with their
           | primary markets, Rare. Rare generated hits for Nintendo (like
           | Donkey Kong Country), but iirc, Miyamoto never liked them.
           | From the DKC wikipedia entry:
           | 
           |  _In the years following the game 's release, rumours spread
           | that Miyamoto disliked Donkey Kong Country and found it
           | amateurish, provoking him to create the hand-drawn art style
           | of Yoshi's Island. He was allegedly quoted as telling
           | Electronic Games magazine in 1995 that "Donkey Kong Country
           | proves that players will put up with mediocre gameplay as
           | long as the art is good"._
           | 
           | Again according to wikipedia, DKC was one of the top selling
           | SNES games, only Super Mario World and Super Mario All-Stars
           | are higher on the list
           | https://en.wikipedia.org/wiki/List_of_best-
           | selling_Super_Nin....
        
             | atdrummond wrote:
             | Rare was never owned by Nintendo - they were only ever a
             | second party developer. Nintendo did provide them with
             | significant financial resources and autonomy, however.
        
               | erk__ wrote:
               | Another example of a company could be Game Freak and
               | Creatures, the developers of Pokemon. Though it is now
               | created with a joint-venture like company "The Pokemon
               | Company" that is owned mostly by those three companies,
               | with Nintendo owning 32%.
        
               | nineteen999 wrote:
               | Interestingly enough, Nintendo studio acquisitions seem
               | to be "rare" enough that they make news headlines, like
               | the recent acquision of Next Level Games (makes of
               | Luigi's Mansion 2 & 3), which will move from second-party
               | to first-party:
               | 
               | https://micky.com.au/nintendo-acquires-bc-video-game-
               | develop...
        
             | meddlepal wrote:
             | As others mentioned, not owned by Nintendo, but also Rare
             | was sort of spent as a creative force by the time they were
             | purchased in 2002.
             | 
             | They lost a lot of developers to Free Radical.
             | 
             | I'm not sure what Microsoft acquired with Rare because
             | besides Viva Pinata and Sea of Thieves the company has
             | basically produced junk over the last eighteen years.
             | They're not even in control of their main IP: Perfect Dark
             | as Microsoft has parcelled that out to another studio for
             | the reboot.
        
             | adrian_mrd wrote:
             | Rare did align with Nintendo's core business - and was an
             | exclusive Nintendo64 developer - but even Tim Stamper, co-
             | founder of Rare, is apparently none-the-wiser...
             | 
             | > "One of the most interesting parts of the interview is
             | Stamper's view on Rare's sale to Microsoft, and the
             | question that seems to eternally be on everyone's lips: why
             | didn't Nintendo snap up the studio beforehand? Nintendo
             | owned almost half of the UK company, but for reasons
             | unknown never tried to buy Rare outright, despite the fact
             | that the Stampers were clearly on the lookout for buyers.
             | 
             | Stamper is at a loss as to why Nintendo didn't step in and
             | open up its chequebook:
             | 
             | I've no idea why they didn't do that. I thought we were a
             | good fit." [1]
             | 
             | [1] https://www.nintendolife.com/news/2015/08/rare_co-
             | founder_ha...
        
             | epalm wrote:
             | Is it really fair to count Super Mario World in the best-
             | seller list considering it came with the console?
        
               | snuxoll wrote:
               | Why not? Everyone counted Wii Sports as the best-selling
               | game of all time despite being a pack-in (and even today
               | it's #4 having only been outdone by Minecraft, GTAV and
               | Tetris Mobile).
        
             | esperent wrote:
             | Rare was funded by Nintendo but I don't think it was ever
             | owned by them.
             | 
             | https://en.m.wikipedia.org/wiki/Rare_(company)
        
           | nolok wrote:
           | You might want to check the "portions" of Nintendo business
           | to realize why not. Even in core console gaming, they're
           | notorious for not actually owning many studios, including
           | some you would assume they do given how long they're worked
           | together.
           | 
           | Notoriously, Nintendo didn't own Rare (who was a big studio
           | for Nintendo bound games), didn't want to buy when they
           | wanted to sold, and they ended up at Microsoft which is an
           | acquisition that's very hard to spin as a success.
        
             | Danieru wrote:
             | No kidding, Nintedo doesn't even own Intelligent Systems
             | and those guys used to develop the Devkit tooling.
             | 
             | Get this: IS used to work from inside Nitendo's own
             | factory.
             | 
             | Granted, while Nintendo does not own these companies they
             | have strong control. Just last year Nintendo moved all
             | their developers in Tokyo into a single tower.
        
               | imbnwa wrote:
               | I wonder if this is related to what someone mentioned
               | above in the thread whereby Japanese firms seem to value
               | implicit, mutually beneficial behavior
        
               | MichaelZuo wrote:
               | Likely a lot of old school politicking behind the scenes
               | too. Especially as they're a Kyoto company.
        
           | sfifs wrote:
           | > Over the years they've spun off many of these divisions and
           | today's GE looks nothing like OG GE.
           | 
           | That's why today's GE is close to bankruptcy and easily
           | threatened by corporate raiders. Arguably if they has stayed
           | focused on their core competency of high quality cutting edge
           | engineering instead of stupid financial engineering, they'd
           | have stayed releva6ans powerful.
        
         | manojlds wrote:
         | Nokia was founded before Nintendo.
         | 
         | Nintendo was at its lowest point not long back with the WiiU.
         | In 2000 they were looking at lacklustre performance with N64
         | and Gamecube. (and already fallen behind Sony)
        
           | [deleted]
        
       | mankyd wrote:
       | I am more curious about context here. Nintendo was (and is) a
       | public company. Presumably Microsoft new what a reasonable bid
       | would look like. This sounds like they weren't just laughing at
       | the offer itself.
        
         | mikestew wrote:
         | They could have been laughing at "your hardware sucks, why
         | don't you do software and Microsoft will do the hardware?"
         | 
         | And when you look at the giant-ass (and noisy-ass) box and
         | controllers that were the first Xbox, I'd argue that Nintendo
         | weren't too far off laughing Microsoft out of the room. Of what
         | little I know about Nintendo, there's no way they were sticking
         | their name on that.
        
           | city41 wrote:
           | As far as I know, the Switch Joy Cons drift problem is the
           | only hardware issue Nintendo has ever had.
        
             | dharmab wrote:
             | N64 controllers had reliability issues due to games like
             | Mario Party wearing out the sticks. Some of the DSes had
             | hinges that would break from normal use.
        
               | derefr wrote:
               | I think the N64 Mario Party titles would have worn out
               | literally any analog stick used to play them. The fault
               | was more in the game-mechanic design, not realizing
               | exactly what they were asking of the hardware, and not
               | thinking through that the minigames involving rotating
               | the stick would be replayed ad nauseam, thousands of
               | times, for years.
        
               | majormajor wrote:
               | My N64 sticks wore out through Goldeneye, Zelda, and
               | Mario Kart, no Mario Party needed. It was just a first-
               | gen stick design that didn't hold up.
        
             | asdff wrote:
             | Ehh I guess it depends on how long until you expect a
             | hardware issue. The directional pads on gameboys and DSs
             | tend to fail, as well as the sticks on n64 and gamecube
             | controllers
        
             | AnIdiotOnTheNet wrote:
             | There was the Virtual Boy. It was ugly, it was painful to
             | play, and the overall experience was disappointing. I
             | haven't heard of any reliability issues with it, but
             | considering how massive a failure it was it might be that
             | no one ever played one long enough to find out.
        
             | btschaegg wrote:
             | Well, the N64 controller's analog stick had a tendency to
             | get really clunky after some time of use (it amassed some
             | kind of "frictiony" feeling in its joint).
             | 
             | But then again, the my old console is still going strong.
             | OTOH, my original Xbox refused to boot some years ago...
        
               | city41 wrote:
               | Ah yeah, I forgot about that one. Interesting two of
               | their issues were both related to analog sticks.
        
               | zeeZ wrote:
               | I have the opposite problem. After many games of Mario
               | Party, the analog stick would be very loose, flopping
               | around without much friction.
        
             | jaywalk wrote:
             | They were probably referring more to how powerful it was,
             | not quality issues. And in that way they're still correct
             | to this day, although Nintendo has figured out how to
             | thrive with significantly less powerful hardware than
             | Microsoft and Sony.
        
               | derefr wrote:
               | Nintendo _chooses_ to use old components in their
               | hardware, though. It 's not like they don't have the
               | industry contacts to source more powerful stuff if they
               | want. They just want to have a positive profit margin on
               | selling console hardware. They want hardware sales (and
               | sales of first-party "killer app" software enabled by the
               | hardware) -- not third-party software license fees -- to
               | be their main revenue stream.
               | 
               | Each console or handheld Nintendo puts out follows a
               | formula:
               | 
               | * Choose key components (CPU cores, screens on portables,
               | etc.) that are two-to-five year-old, one-or-more
               | generations-behind tech at design time, such that they're
               | in wide manufacturing and easy to source as parts / cheap
               | to license to build themselves.
               | 
               | * Add in novel in-house-developed IP cores/ASICs, which
               | allow developers to build games that "do" a lot more than
               | the key components would seem to allow.
               | 
               | * Wrap the whole thing in a novel interaction method that
               | makes the console's hardware performance relative to its
               | "console generation" kind of illegible (e.g. the Wiimote,
               | the two screens of the DS, the portability of the Switch,
               | etc.); which de-facto locks in games developed to target
               | the hardware, making them much harder to port away; and
               | which acts as a neato whizz-bang selling point in the
               | form of enabling new "killer apps" (e.g. 3D first-person
               | games with the N64 analog stick; Wii Sports with the
               | Wiimote; Brain Training and other pre-smartphone "apps"
               | with the DS stylus.)
               | 
               | Nintendo are at their best (i.e. most profitable) when
               | they double down on this strategy, releasing a seemingly-
               | new hardware "generation" that's really just the same
               | existing hardware but with new/updated IP cores. The
               | Gameboy Color is just an overclocked Gameboy with a
               | better PPU. The Wii is just an overclocked Gamecube with
               | an ARM coprocessor embedding wi-fi/bluetooth/SD card
               | support. Etc.
               | 
               | The Switch is a departure from this strategy, in that the
               | Tegra X1 wasn't actually all that old at the time of the
               | Switch's release, and so likely bit into Nintendo's
               | profit-margin on the Switch pretty heavily. I'm sure
               | Nintendo would rather have used a slightly-older part.
               | But there just wasn't anything like the Tegra X1 (in
               | terms of GPU power per watt) until the Tegra X1 -- no
               | viable competitors, and no previous generation of the
               | chip to lean on. _And_ they were constrained by wanting
               | to port Wii U games to the Switch, which demanded
               | basically the X1 's level of power.
        
               | bitwize wrote:
               | In 2000, "your hardware sucks" didn't really hold water.
               | The N64 was a cut-down SGI machine -- it had texture
               | filtering, a Z-buffer, and perspective correct texturing.
               | Things the PlayStation didn't have, because in the
               | mid-90s the state of the art in Japanese 3D hardware was
               | to modify sprite blitter chips to do 3D with affine
               | transforms. Nintendo contracted with the American SGI to
               | get SGI tech into the N64, a savvy move. The PlayStation
               | had more polys on the screen at once, but they looked
               | worse. And they had a CD-ROM, which let them undercut
               | Nintendo on the price of games.
               | 
               | But the N64 didn't _suck_. Neither did the Gamecube,
               | which was superior in capability to Sony 's sixth-gen
               | offering (though not Microsoft's).
        
               | setpatchaddress wrote:
               | Lack of CD-ROM was a gigantic problem, though. Doesn't
               | matter if you have better hardware if you can't fit all
               | the content. Square moved to PlayStation for specifically
               | this reason.
        
               | AnIdiotOnTheNet wrote:
               | It was a tradeoff. Cartridges cost a lot more but they
               | made piracy a lot harder and loading times nonexistent.
               | In retrospect it seems like a bad move but it could have
               | gone the other way.
               | 
               | Ironically, thanks to FPGAs we can now pirate cartridge
               | games on the original hardware easily and without
               | modification, while the situation with disc-based
               | consoles is somewhat trickier. Meanwhile, physical
               | console game distribution has swung back to solid-state
               | media since optical discs simply can't match the capacity
               | or speed.
        
               | Danieru wrote:
               | My theory is residuals from that SGI contract is what
               | allowed SGI Japan to stay alive. They later renamed
               | themselves to to Silicon Studio. Now best known for
               | developing Bravely Default.
        
         | wodenokoto wrote:
         | Japanese public companies have been known to do a "poison pill"
         | strategy to avoid foreign takeovers.
         | 
         | https://en.m.wikipedia.org/wiki/SCOJ_2007_No.30
        
           | rawgabbit wrote:
           | The wiki article seems like a reasonable defense to prevent
           | corporate raiders from taking over and loading it up with
           | debt while walking away with a fortune for basically
           | crippling a once successful company. See KKR's takeover of
           | TXU electric.
        
       | microtherion wrote:
       | Evidently nothing came of the proposal, but I find it very
       | difficult to believe that the executives of a Japanese company
       | would "laugh" a proposal like this "out of the room". I imagine
       | the scene played out with a lot of tea, carefully calibrated
       | bows, and apologies about the timing of this excellent proposal
       | not being auspicious.
       | 
       | patio11 probably could provide a more accurate projection of a
       | sarariman reaction to the MS offer.
        
         | jvzr wrote:
         | They may have met with Nintendo of America? Which would make
         | this story plausible
        
           | gamegoblin wrote:
           | Nintendo of America is headquartered in the same city as
           | Microsoft (Redmond WA), so this is definitely plausible.
        
             | theandrewbailey wrote:
             | I was going to say Nintendo is across/down the road from
             | Microsoft, but checking again, Microsoft surrounds them:
             | 
             | https://www.google.com/maps/place/Nintendo+of+USA/@47.65105
             | 2...
        
               | Zelizz wrote:
               | With Go rules, they'd already be ours!
        
               | boogies wrote:
               | alternative map: https://www.openstreetmap.org/search?que
               | ry=428818970#map=16/...
        
         | franklampard wrote:
         | You have such a naive stereotype about Japanese people
        
           | yongjik wrote:
           | Clearly, there should have been a young brash Nintendo VP
           | tearing the printed proposal in half, then in quarters, then
           | in one eighths, until all is left is pieces falling like
           | cherry blossoms, all the while looking at the MS exec in the
           | eyes and making a five-minute impromptu address on what it
           | means to be Nintendo and why money-counting accountants will
           | never understand it, until the MS exec runs out of the room
           | crying, punched by the sheer verbal force of the righteous
           | anger.
           | 
           | Yes, everything I learned about Japan, I learned from
           | Japanese dramas, why do you ask?
        
           | pesfandiar wrote:
           | That and it's apparently making fun of Japanese accent
           | ("sarariman"). It's a pity that this is the top comment on HN
           | right now.
        
             | ThrowawayR2 wrote:
             | That's the correct romanization of the Japanese word
             | sarariman, which, according to the Wikipedia article on it,
             | is a loanword whose usage dates back to before the 1930s:
             | https://en.wikipedia.org/wiki/Salaryman
        
             | jbay808 wrote:
             | It's clearly a direct transcription, rather than a
             | translation, of sarariman. I doubt any mockery is intended.
        
               | pesfandiar wrote:
               | Thanks for clarifying that. I might have been wrong about
               | their intention then, but mockery seemed plausible given
               | they were also painting a very stereotypical picture of a
               | business meeting.
        
               | microtherion wrote:
               | Thanks for giving me the benefit of the doubt!
               | 
               | As for stereotyping... maybe! But isn't "laughing a
               | proposal out of a room" a stereotype as well?
        
             | subsubzero wrote:
             | Apparently you don't know about katakana, its a form of the
             | Japanese alphabet that is specifically used for foreign
             | words translated to Japanese. The pronunciation of these
             | words sounds similar to their foreign counterparts. think
             | sararimam == salaryman, hanba-gu == hamburger, terebijon ==
             | television and so on.
             | 
             | katakana - https://en.wikipedia.org/wiki/Katakana
        
               | ezoe wrote:
               | If he really knows kana, he should write it as sarari-man
               | as the third vowel is long vowel.
        
               | colejohnson66 wrote:
               | Is it a hyphen? Or would it be saraiiman? I actually
               | don't know.
        
               | panda88888 wrote:
               | Your form is correct based on faint recollection of what
               | I learned in college Japanese class.
        
             | mparkms wrote:
             | Sarariman (adapted from the English salary man) is the
             | Japanese term for white collar worker.
        
               | krapp wrote:
               | Native English speakers tend to just say "salaryman" when
               | speaking to other English speakers. Adopting a faux
               | Japanese accent, particularly in print, is extremely
               | cringeworthy.
        
               | anchpop wrote:
               | Sarariman is a Japanese word, the original commenter
               | wasn't adopting a false Japanese accent. Here's an
               | article from the economist using the term:
               | https://www.economist.com/special-report/1999/11/25/who-
               | want...
        
               | microtherion wrote:
               | Yes, my intent was not to mock a Japanese accent, but to
               | adopt what seemed to me the most plausible spelling. In
               | this particular case, the Japanese concept has far
               | eclipsed the original English word, and the term was more
               | or less a Japanese creation in the first place[0], so
               | that's why I spelled it that way.
               | 
               | In other cases, the English spelling is still dominant,
               | so using a back-transliterated katakana spelling (e.g.
               | "Rabu Hoteru" instead of "Love Hotel") would be just
               | weird.
               | 
               | [0] https://books.google.com/ngrams/graph?content=salary+
               | man%2Cs...
        
               | earthboundkid wrote:
               | I lived in Japan for years. I have never seen English
               | speakers write "Sarariman" instead of "Salaryman" when
               | talking about the phenomenon.
        
               | jbay808 wrote:
               | The English word "cookie" is derived from Dutch "koekie".
               | 
               | If some Dutch people bring back Oreos as souvenirs from
               | the US and call them "cookies" instead of "koekjes", are
               | they adopting a cringeworthy faux-American accent? Making
               | fun of how English butchers their language? Or just
               | calling them the way Americans do, without any further
               | judgement?
        
               | krapp wrote:
               | Possibly, yes.
        
               | slothtrop wrote:
               | > Native English speakers tend to just say "salaryman"
               | when speaking to other English speakers.
               | 
               | We don't tend to use salaryman at all. There's white-
               | collar, businessman etc. By contrast sarariman had been
               | popularly coined in the 90s by the Japanese.
        
               | AnIdiotOnTheNet wrote:
               | I believe the parent meant we would say 'salaryman' when
               | speaking of the Japanese conception of the term. Which in
               | my experience is true. It could be because 'sarariman',
               | though a reasonable approximation of the Japanese
               | pronunciation, does sound like a racist caricature, but I
               | think it is equally likely it just feels awkward to the
               | native-english-speaking tongue.
        
       | JoshTko wrote:
       | Nintendo's total value is definitely limited due to their
       | hardware lock. If they went hardware agnostic their value would
       | triple overnight.
        
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       (page generated 2021-01-07 23:02 UTC)