Microsoft reveals its intention to buy Nintendo, but there's just one big problem

Leaked documents between a Microsoft head and a senior Nintendo employee have revealed Microsoft's intention to purchase Nintendo.

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Emails between Phil Spencer, the Head of Xbox, Takeshi Numoto, Executive Vice President & Commercial Chief Marketing Officer at Microsoft, and Chris Capossela, EVP & Chief Marketing Officer at Microsoft, revealed a discussion about purchasing Nintendo, describing the company as the "THE prime asset for us in gaming". The email chains were leaked by the Federal Trade Commission (FTC) as a result of the Activision Blizzard acquisition by Microsoft.

Not only were emails leaked, but internal documents revealed plans for future Xbox consoles, along with unannounced games and more secret details. The idea for Microsoft to merge with Nintendo is clearly well thought out, as Spencer outlines that the company's Board of Directors has seen a "full writeup" of the possible merger, and that Microsoft's board is "fully supportive" if the opportunity presents itself.

However, Microsoft doesn't believe that opportunity will present itself any time soon as Spencer emails in an email that "Nintendo is sitting on a big pile of cash, they have a BoD [Board of Directors] that until recently has not pushed for further increases in market growth or stock appreciation."

Leaked Microsoft Emails

"Takeshi. I totally agree that Nintendo is THE prime asset for us in Gaming and today Gaming is our most likely path to consumer relevance. I've had numerous conversations with the LT of Nintendo about tighter collaboration and feel like if any US company would have a chance with Nintendo we are probably in the best position."

"The unfortunate (or fortunate for Nintendo) situation is that Nintendo is sitting on a big pile of cash, they have a BoD [Board of Directors] that until recently has not pushed for further increases in market growth or stock appreciation. I say 'until recently' as our former MS BoD member ValueAct has been heavily acquiring shares of Nintendo and I've kept in touch with Mason Morfit as he's been acquiring. It's likely he will be pushing for more from Nintendo stock which could create opportunities for us," continued Spencer

"Without that catalyst I don't see an angle to a near term mutually agreeable merger of Nintendo and MS and I don't think a hostile action would be a good move so we are playing the long game. But our BoD has seen the full writeup on Nintendo (and Valve) and they are fully supportive on either if opportunity arises as am I."

"I love this discussion and value you looking at the opportunities here. At some point, getting Nintendo would be a career moment and I honestly believe a good move for both companies. It's just taking a long time for Nintendo to see that their future exists off of their own hardware. A long time.... :-)," concluded Spencer