Microsoft - Looking to Buy a Japanese Studio

PC Gamer reports that Microsoft is looking to buy a Japanese Studio.

Fresh from acquiring Bethesda, Microsoft are apparently in talks to buy some studios in Japan, Bloomberg have reported: "Several Japan-based game developers, from small to big, said [Microsoft] had approached them about buying their businesses." The developers in question wished to remain anonymous, but this gels with a statement Xbox head Phil Spencer made last year, that "it would be nice if we found an Asian studio, in particular a Japanese studio".

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More information.

Hmm I predict a multi-billion Square Enix buyout/merger incoming.

Can't be From Software due to being in Sony's pocket.

I am not sure that From is in Sony's pocket, since Activision published Sekiro and Bandai Namco published their other games (except the PS exclusives).

They are not owned by Sony but have exclusive deals with them for big $. Again doesn't mean they are Pro-Sony, but it's a fact they are in Sony's pocket already.

So I don't foresee them taking the money and going team Microsoft. Also Square Enix is the better acquisition they have more IP's and secondary developers.

I hate myself for saying this, but I don't mind M$ buying some of japanese studios. Sony has been really awful with their old school strategy of exclusivities.

With Sega selling off most of its Japanese arcade business due to Covid the timing couldn't be better for Microsoft to swoop in and do a deal. Western Sega has been doing great on PC for the last few years.

Why not a studio from Ecuador ? Or from Mongolia ? Or from Senegal ?

I'm going to say sega or konami.....or both.

Well, it is probably not a good buy, given that most Japanese studios sell best in Japan and almost none in Japan buys an Xbox so....

GothicGothicness said:

Well, it is probably not a good buy, given that most Japanese studios sell best in Japan and almost none in Japan buys an Xbox so….

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Except they sold out all preorders and their point is to try and make in roads....as well, japanese games sell in northamerica as well....

Alrik Fassbauer said:

Why not a studio from Ecuador ? Or from Mongolia ? Or from Senegal ?

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Can you name any studios from those places, or popular games they've produced? We'd be here all day if we talked about the Japanese ones. There's a proven pool of game development talent in Japan.

Also, putting that aside, Microsoft want to have more Japanese people buying their games (they have since the original Xbox, and have never really succeeded), and there's a chunk of Japanese people who prefer buying Japanese games over western ones. If Microsoft can't make the Xbox popular enough to have Japanese developers make games for it themselves organically, then they can try buying a few Japanese studios to make games to entice Japanese gamers for their platform until they reach a customer saturation point where it's worthwhile for studios they don't own to make games for them.

rune_74 said:

Except they sold out all preorders and their point is to try and make in roads….as well, japanese games sell in northamerica as well….

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They sure do try, but they tried this before… Blue Dragon for example anyone?

If they are aiming to increase their market share in other places, probably money is better used buying another none Japanese studio.

Still it would be great if they bought Square Enix, they have only been producing crap lately, with the talent they have, if they only could get a decent person designing their games, they could make some of the best games in the world. Just imagine a world like FF XV for example, but without a person that is most probably crazy designing the story and gameplay.

Sega or Square Enix come with western developers and IPs as well. Most notable Creative Assembly for Sega and Eidos-Montreal for Square Enix. Many more also.

Get that third Deus EX prequel made already.

Fyi, there are plenty of excellent opportunities for Microsoft to shop a great Japanese studio.

SEGA: they have serious financial issues now, and it would be a great buyout just to get rid of its co-company Sammy (a shady pachinko company, allegedly with real yakuza connections)

Platinum Games: actign game extraordinaires, not particularly committed to any gaming platform. Their CEO constantly muses about getting a good business deal with someone financially powerful, as their games tend to be expensive to make (Bayonetta, Astral Chain, Nier:Automata, etc). SHame they had a recent fallout at Microsoft with a potentially great game concept.

Grasshopper Manufacture: Suda51 and his fellow punk stoners, creators of the great anarchist No More Heroes games (although they got some sweet love from Nintendo recently)

Yoko Taro and/or SWERY and co: The Men behind the quirky Nier / Drakengard series and Deadly Premonition games respectively. Original for sure, exactly what Microsoft needs right now.

… and may more lesser known small studios.

Konami is very unlikely, they are way too connected to the very strong Japanese mobile gaming market. Also I don't think Capcom is available right no - they are more than happy with their Monster Hunter games (soon to be a major film).
SquEnix is also no-go, as they are part of a gigantic Japanese media company, and their Dragon Quest/Warrior IP is one of Japan's most lucrative franchises (along with Nintendo's Pokemon). A sub-studio buyout might be possible though (Eidos?)

Yeah, doesn't seem that their interest is in western studios that are Japanese owned. I suspect they're interested in real Japanese talent, which makes sense on its own, but probably also to try to break into the Japanese console market.

Well as the saying says Go BIG or Go Broke!

Don't settle for some third rate Japanese developer.

Ripper said:

. . . but probably also to try to break into the Japanese console market.

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This is a possibility.
Strange as it may sound, the PS4 was not a huge deal in Japan as the previous PS systems, and the PS5 is being attacked as well (both from the devs and the gamers).

So this is a historic opportunity for Microsoft to get into the Japanese market AGAIN, after the utter failure of the original Xbox and the mild reception of X360 . . .

However:
I think, MS' strategy is to shop cheaper Japanese studios as their games tend to have a cult following in the west -- and create Japanese-ish games for the Western crowd. (hint: Game Pass for EVERY type of gamers)
Think about what Netflix does nowadays: exploiting the the recent anime boom in the west, they are creating their own anime-ish content especially for the Western audience in mind.

If they really want to hit a home run, they'll go for a company like Capcom.