Entering text into the input field will update the search result below

Microsoft has signed Nintendo deal, Smith says, set to defend Activision merger

Feb. 21, 2023 12:55 PM ETMicrosoft Corporation (MSFT), NTDOY, ATVIGOOG, SONY, NVDA, EA, GOOGLBy: Chris Ciaccia, SA News Editor17 Comments

Gamescom 2013 Gaming Trade Fair

Juergen Schwarz/Getty Images News

Microsoft (NASDAQ:MSFT) President Brad Smith said on Tuesday the company had signed a deal to bring Xbox games to Nintendo (OTCPK:NTDOY), as he attended a hearing to defend the company's proposed acquisition

Recommended For You

Comments (17)

Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

LifelongMetsfan1 profile picture
The Activision buy is not about gaming. If Microsoft can pull this off and buy Activision in 5-10 yrs Microsoft will have developed a meta-like consumer goods delivery platform. Think virtual Amazon/Wallmart/CVS etc all on one location.
@LifelongMetsfan1 So... like the Google Play store, the Xbox store, the Playstation store, the Nintendo eShop, or the Apple App store, Steam? If Microsoft buys Activision, all these alternatives die?
No one buys Call of Duty (or most Activision games) on Switch anyway. This has just been a stall tactic to try and crush the merger.
@prema_donna They don’t buy call of duty on switch because it doesn’t exist.
@Caywyn Call of Duty games have never been popular on Nintendo systems. No one bought them on the Wii when they were still released, and no one bought them on any Nintendo console. FPS isn't a popular genre on Nintendo consoles, and with the possible exception of the Super Nintendo and the Nintendo 64, that has always been the case. Activision Blizzard games have been primarily popular on PC, XBOX Series X, and PS5 in roughly that order.
Bitzap profile picture

"FPS isn't a popular genre on Nintendo consoles"

Fortnite was very popular on the Switch. For example:

Nintendo signed a piece of paper that doesn't mean anything.

[while adding that consumers largely back the deal to acquire Activision Blizzard (ATVI).]

@PanicFirst I do, why wouldn’t I? I don’t believe for a second that Microsoft has any reason to limit call of duty, and the acquisition should make game pass even better. As an added benefit, Microsoft might be able to clean up the dumpster fire that is Activision’s management.
Thanks SA.
Long time MSFT holder. Kinda don’t care but leaning towards wanting this deal to fail. Don’t think ANY gaming company is worth 69 Billions.
@Blowback2 It is a large purchase price. However, Microsoft sees cloud gaming/game subscriptions as important to the future of gaming. Microsoft views Activision content as helpful to achieving its subscriber target numbers. If they have 300 million subscribers at ~$15 per month, and if we estimate a 50% profit margin, Activision will pay for itself within 5 years. Worth the purchase price if the content drives subscriptions.
@Blowback2 They are buying the best. That makes sense. Why buy something else than best when you've got the money? Over the long-term, that is decades, it might be worth it.
@Blowback2 Gaming is a $400B+ industry globally. Why would a single company not ever be worth this amount?
Mmhh activision is a short position with limited downside I guess. If the deal falls through activision probably drops by 20-30%
RSI Raistlin profile picture
@Jakelamotta Thats a big hope for 20/30%. So you think itll go to the mid 50s with a 3 billion cash infusion? I doubt it but I hold puts at 50 just in case. I think its 15% upside and about the same to the downside. But the difference is the upside is permanent and I think within 2 weeks itll pop off the downside with alot of cash flexibility.
bluescorpion0 profile picture
'business' is now an arm of government. Markets really have no purpose to exist since the West pivoted to communism, or crony capitalism at best.
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.