Nintendo and Microsoft are competing in the stationary game console market. However, official testimony revealed that Microsoft reviewed the acquisition of rival Nintendo 20 years ago and even discussed it.
On the 20th anniversary of the Xbox launch, in a press interview with Xbox developers, former director of third-party Kevin Bachus met with former Microsoft CEO Steve Ballmer to see if Nintendo would review the acquisition. The Nintendo side said that it was only a laugh at the company’s proposal, and that it was such a meeting to imagine a scene where someone keeps laughing for an hour. They declined Microsoft’s offer to take over.
Afterwards, in January 2000, Bob McBreen, head of Xbox business development, held a meeting with Nintendo. At this meeting, Microsoft suggested to Nintendo for a joint venture to develop hardware that can play Nintendo titles, but it was rejected.
McBrin’s Nintendo hardware was damn good compared to Sony’s PlayStation, so I suggested that Nintendo is much better at developing games like Mario, so Nintendo will take over the hardware development and leave Microsoft to develop the hardware. However, this proposal didn’t go well.
Nintendo wasn’t the only one Microsoft was considering taking over at the time. After the Xbox business got on track, Microsoft said it was considering acquiring several game companies, including Konami, Electronic Arts, Square, and Midway Games. Electronic Arts said the company declined the offer to take over, and Square said that any offer was eventually defeated, such as because the acquisition amount was too low.
Between 2000 and 2001, when Microsoft was considering acquiring Nintendo, Nintendo had already released the Nintendo 64, and it was soon time to launch the Nintendo Gamecube. However, Nintendo 64 and Nintendo Gamecube both showed far less sales compared to Super Famicom. If Microsoft had acquired Nintendo, it would have been possible that the Master Chief appeared in Mario Kart. Related information can be found here .