August 17th 2024.
Is Xbox and Nintendo the perfect partnership? A reader has suggested that Microsoft should consider selling Xbox to Nintendo in order to avoid antitrust investigations. It's a common belief that when it comes to our hobbies, we all think we could do a better job than those in charge. Whether it's managing a football team or making decisions for a film, we all have opinions. But when it comes to the video game industry, it seems like fans really could make better decisions, not in terms of creative choices, but in terms of business decisions.
Sony has been struggling for a while now, and it's unclear why. They're managing to stay afloat, but just barely. On the other hand, Microsoft has been on the brink of disaster for two generations, and even longer if you count the introduction of the Kinect. Phil Spencer has been in charge for most of that time, but it's safe to say that he hasn't done a great job. His biggest achievements have been introducing Game Pass, which didn't have the impact he was hoping for, and purchasing Activision Blizzard and Bethesda for a hefty sum that hasn't helped their console business at all.
Microsoft's plans for Xbox seem scattered and inconsistent. They may be waiting to see if Call of Duty boosts Game Pass, but it's unlikely. They may boast about a 200% increase in subscriptions, but even that won't make a difference if it's 200% of zero. And when that doesn't work, they'll move on to the next "big" first-party release, and so on. This has been the pattern since the Xbox One era.
It seems like Microsoft's only strategy now is throwing money at the problem and hoping something sticks. But that's not a plan, it's the absence of one. They can't even decide on their position in the multi-platform market, leaving both players and developers confused. So here's a simple plan: sell the Xbox business to Nintendo. Sony is already doing most of what Xbox does, so that would create a monopoly. But there's very little overlap between Nintendo and Xbox, making them a perfect match.
I mention the word "monopoly" on purpose, because the US government is currently cracking down on monopolies, with talks of breaking up big companies like Google and Amazon using antitrust laws. If Microsoft's acquisition of Activision Blizzard had happened this year instead of last, it probably wouldn't have been allowed. And with Microsoft being a $3 trillion company with multiple monopolies, it's only a matter of time before they're targeted, especially since Satya Nadella has claimed that gaming is one of their main pillars.
If I were Microsoft, I would recognize that things aren't going well and that Phil Spencer is not the right person for the job. Selling the entire Xbox business to another company would be the best solution. Nintendo would be the ideal choice, as they know what they're doing and their strengths would complement Xbox's weaknesses. Of course, they would need to guarantee that all current multi-platform games remain multi-platform.
If not Nintendo, there are other potential buyers like Amazon, Apple, or Google, but they have already shown a lack of understanding for the gaming industry. And if they're in danger of being broken up, buying Xbox won't help their case. To be clear, I don't think there's any chance of Nintendo actually buying Xbox. They're not known for spending money, and even if they could afford it, they would never deplete their war chest.
But the threat of antitrust investigations and the current state of Xbox make it a plausible scenario. It would be a huge sacrifice for Microsoft, but they would probably be relieved to be rid of the struggling Xbox business. The reader's feature does not necessarily reflect the views of GameCentral or Metro. You can submit your own 500 to 600-word feature at any time, and if selected, it will be published in the next appropriate weekend slot. Just contact us via email or use our Submit Stuff page. And be sure to sign up for exclusive gaming content and get the latest releases before they're seen on the site.
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