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The Xbox game console is the subject of a Bloomberg article titled “Xbox: Oral History and an American Video Game Empire” which explores Microsoft Corporation (NASDAQ: MSFT) decision to get into the game – and some acquisitions have failed.
What happened: Before releasing the Xbox console, Microsoft approached several game companies about acquisitions in order to be able to compete with exclusives Sony Corporation (NYSE: SNE).
Microsoft has approached Electronic arts (NASDAQ: EA), which was considered one of the best gaming companies at the time. Microsoft has met Electronic Arts more than five times, but was left empty-handed on a deal, according to the report.
After failing to acquire Electronic Arts, Microsoft turned to Nintendo Co (Rose: NTDOY).
“They just kicked their ass. For example, imagine a time when someone is laughing at you. That was kind of how this meeting went, ”said Kevin Bachus, then director of third-party relations for Microsoft.
Microsoft reportedly met with Nintendo again in January 2020 to launch the company into a joint venture. The talk was that Nintendo was not good at hardware, but was strong in the games business with Mario and other brands. Microsoft has said it will take care of the hardware. Nintendo also turned down the joint venture.
Microsoft has also attempted to acquire Square, now known as Square Enix, the maker of the “Final Fantasy” franchise games, and Midway, known for the “Mortal Kombat” games.
The acquisition that was made by Microsoft before the Xbox was released was of Bungie, the maker of the popular “Halo” franchise. Microsoft acquired Bungie and enjoyed the success of exclusive “Halo” games for many years.
Related Link: 6 Video Game Stocks To Watch In 2021
Why this is important: Exclusive games can be a key differentiator for video game consoles. Part of the success of the Playstation 5 could be due to exclusives like “Spider-Man: Miles Morales” and “MLB The Show”.
Microsoft acquired ZeniMax Media in 2020, giving it control over franchises such as “Dishonored”, “Fallout”, “Doom” and “The Elder Scrolls”. The company may look to launch exclusive titles to complement its “Halo” games and better compete with Sony.
Microsoft may have failed 20 years ago to acquire any of the companies mentioned, but the Xbox has been a success for the company and Microsoft now has a games division worth billions of dollars a year. .
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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