Nintendo acquire Next Level Games (Luigi’s Mansion, Mario Strikers series)
Nintendo have just sent a press release to announce that they have entered into an agreement to acquire 100% of the outstanding shares of Next Level Games Inc.. In other words, they have acquired the company, which is to become a subsidiary of Nintendo (similar to Retro Studios or Monolith Soft.).
For well over a decade, Next Level Games have collaborated with Nintendo on many projects: Super Mario Strikers and Mario Strikers Charged on GameCube and Wii respectively, Punch Out!! on Wii, and more recently the Luigi’s Mansion series on Nintendo 3DS and Nintendo Switch (not to mention the ill-fated Metroid Prime: Federation Force on Nintendo 3DS).
This acquisition does not really come as a surprise (even if it’s highly unusual for Nintendo to outright purchase a game development company, as they prefer partnerships like those with Koei-Tecmo or PlatinumGames). Back in 2014, Next Level Games had already announced their intent to work exclusively with Nintendo moving forward, and this acquisition is but the next logical step for the two companies.
According to Nintendo, this acquisition serves two main purposes:
- “secure the availability of Next Level Games development resources, including development expertise”: by buying the company, Nintendo is making sure the company will now dedicate 100% of its ressources towards development for Nintendo platforms;
- “facilitate an anticipated improvement in development speed and quality by enabling closer communication and exchange of staff with the Nintendo development team”: now Next Level Games is a subsidiary, it has access to all Nintendo’s development ressources.
Nintendo specify that the acquisition will only become official on March 1st, “pending satisfaction of all relevant terms and conditions, including shareholders’ approval, regulatory approval under the Investment Canada Act and other customary closing conditions,” but this should be but a formality.
Finally, this acquisition will have little impact on Nintendo’s results for this year. It’s only from the next Fiscal Year onwards (April 1st 2021) that Nintendo will start taking it into account in their earnings forecasts.
Source: Nintendo
