Microsoft approached Nintendo in the early 2000s with the idea of acquiring the Japanese company and forming a partnership around the launch of the original Xbox, according to executives involved in the project. Sources say Nintendo responded with disbelief and laughter during the meetings.
Kevin Bachus, one of the directors on the Xbox project, recalled the reaction: “They just laughed at us a lot. Imagine someone laughing at you for an hour. That was sort of how our meeting went.”
Deal rationale and proposed split of responsibilities
At the time, Microsoft saw value in combining its hardware capabilities with Nintendo’s software strengths. The proposal envisioned Microsoft handling hardware for future Nintendo products while Nintendo would provide the software used on the Xbox platform.
Observers inside the companies noted the context: after the PlayStation’s success, Nintendo was perceived to be falling behind Sony on the hardware front, which made an offer from Microsoft appear strategically sensible to some executives.
Other studios Microsoft approached
The Nintendo approach was one of several major acquisition or partnership attempts Microsoft pursued as it tried to establish itself in the console market. Electronic Arts reportedly declined a Microsoft proposal, and the company also approached Square Enix and Midway during that period.
Origin of the report
Details about Microsoft’s outreach to Nintendo and other studios come from people who worked on the original Xbox project and were reported by Engadget.
