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Analyst: Unlikely Xbox Could Acquire a Big Japanese Publisher

Analyst: Unlikely Xbox Could Acquire a Big Japanese Publisher - News

by William D'Angelo , posted on 01 March 2022 / 4,305 Views

Microsoft as part of its acquisition of Bethesda parent company ZeniMax was able to acquire its very first Japanese studio with Tango Gameworks, The Evil Within and Ghostwire: Tokyo developer.

The CEO of Tokyo-based game industry consultancy Kantan Games Dr. Serkan Toto in an interview with Hit Point said it is unlikely Microsoft will be able to acquire a big Japanese publisher.

"Nothing can be ruled out in this day and age," said Toto. "But in some ways, Microsoft taking over a big Japanese publisher would be bigger news than the Activision deal.

Analyst: Unlikely Xbox Could Acquire a Big Japan Publisher

"So far no foreign game company has been able to acquire a Japanese studio — and I can guarantee you there have been attempts, from both western and Asian players."

Microsoft Gaming CEO Phil Spencer has previously said he has a desire to acquire a Japanese studio.


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.


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45 Comments
KratosLives (on 08 February 2022)

I really wish sony would go back to their strong japanese relationship and line up of games like the good old ps1 /ps2 days

  • +6
Mr Puggsly KratosLives (on 09 February 2022)

Sony lost interest in Japan because money.

  • -1
thevideogameninja (on 07 February 2022)

Well, considering Microsoft has bought everything else maybe this is a good thing.
?

-LAND OF THE RISING SUN NINJA APPROVED-

  • +6
Random_Matt (on 07 February 2022)

Knowledgeable people already know this. Way too much regulation to get through, won't ever happen.

  • +5
aTokenYeti (on 07 February 2022)

I have read that the issue is less legal and more cultural. The Japanese publishers value their independence and Japanese identity. If true, that would be a very difficult barrier for Microsoft to overcome.

  • +3
method114 aTokenYeti (on 07 February 2022)

That's exactly what it is. If it ever came down to it a Japanese company would be expected to sell to Sony instead of MS.

  • +4
aTokenYeti method114 (on 07 February 2022)

I don’t think it’s ever going to happen. Microsoft should instead keep focusing on getting Japanese games on gamepass. It’s a great way to introduce those games to an audience that is probably unfamiliar with it

  • -1
method114 aTokenYeti (on 07 February 2022)

There was a time I would have agreed but these days I'm not so sure how much it matters. It is weird though how they randomly don't have games that I would think they should have. Like Genshin Impact. How is that not on xbox?

  • -1
scrapking aTokenYeti (on 07 February 2022)

Microsoft might do well to acquire not necessarily the entire developer, but perhaps the PC back catalogue of a Japanese developer for PC Game Pass. Perhaps one that didn't release many/any of their games on the Xbox, but did on PC. That might not cost Microsoft a lot, but could significantly enhance the appeal of PC Game Pass in Japan (and outside Japan for fans of Japanese-style games).

  • 0
SanAndreasX (on 07 February 2022)

Praise the gods.

  • 0
DonFerrari (on 07 February 2022)

But sure we will be ensured on VGC that it is perfectly possible and most likely to happen.

  • 0
Mr Puggsly (on 09 February 2022)

Don't buy the companies, just buy all their IPs. Like a vampire, suck them dry.

  • -1
smroadkill15 (on 08 February 2022)

I think it's a bit premature to say this will never happen. I would have not predicted 2 years ago MS would be buying publishers, but here we are. I'm not saying I want it to happen because I don't have a preference one way or the other, but if MS has the desire they will try.

  • -1
LudicrousSpeed (on 08 February 2022)

Oh no!


Anyway

  • -1
Kakadu18 (on 07 February 2022)

When did Phil Spencer say he had a desire to acquire a Japanese studio? I somehow missed that.

  • -1
G2ThaUNiT Kakadu18 (on 07 February 2022)

I was wondering that myself, because the only info I'm able to find is him saying the exact opposite lol

https://www.gfinityesports.com/console-news/microsoft-studio-xbox-game-japan-phil-spencer-interview/

  • +5
dane007 Kakadu18 (on 07 February 2022)
  • +1
mjk45 Kakadu18 (on 07 February 2022)

He expressed his interest a number of times E3 2019 was one of those, but it seems MS and his desires have cooled, most likely to do with how Japanese gaming is structured where most of the developers the big players anyway are diversified into not just entertainment and publishing like manga, anime, gambling etc with many also having other various non entertainment concerns, even without those, just on the entertainment side it quite often involves a lot of cross licencing and partnership and that's before we encounter any regulatory hurdles.

Then you have to look at what are you after followed by how important is the need to own it outright and that last past I would argue is why Phil has expressed it as being a personal desire and something he would like to see, rather than it being pushed as an imperative for their growth like the Western acquisitions were ,all this along with a general reluctance makes it a much tougher proposition and while you can never say never strategic partnerships and working with the Japanese publishers to help ensuring that game pass is seen by them as a great place for that content seems to be the way forward or for now anyway.

  • 0
2zosteven (on 07 February 2022)

have you ever heard of money? Microsoft has it!

  • -1
Kakadu18 2zosteven (on 07 February 2022)

It's not about the money.

  • 0
Azzanation (on 07 February 2022)

From what iv read, Foreign companies cannot buyout Japanese studios, they can do partnerships etc. Only way i see it happening is if MS buy the Western divisions of the Japanese company. Like Capcon US.

  • -2
Ayla (on 07 February 2022)

The US should also make it illegal for foreign companies to buy American companies. Tit for tat.

  • -5
G2ThaUNiT Ayla (on 07 February 2022)

100%! Tencent is buying video game companies regardless of geographical location.

  • +13
Leynos Ayla (on 07 February 2022)

Agreed. Too many chinese companies own US companies.. Doesn't help that basically means China owns US politics.

  • +4
Ayla Leynos (on 07 February 2022)
  • -11
Qwark Ayla (on 07 February 2022)

Sure but they should also forbid US companies to buy foreign companies then. In general they buy more than they get bought.

  • +11
Chazore Ayla (on 07 February 2022)

I think it's only fair they do that, because why let Asian companies like Tencent gobble up both Western and Asian ones, when the US can only do US/EU.

  • -1
gdroid (on 08 February 2022)

If there is such an impediment for Japan to sell a company from its own country, that the United States or another foreign company does not allow a Japanese company like Sony to acquire foreign companies.
Why can Sony acquire a foreign company but if Microsoft wants to buy a Japanese company it can't?
There have to be equal rules if not Sony has all the advantage for being from Japan and even they buy a company from their own country, it is totally unfair

  • -6
Dulfite (on 07 February 2022)
  • -24
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G2ThaUNiT ClassicGamingWizzz (on 07 February 2022)

When has Microsoft shutdown anything in their acquisitions up to this point? They've been letting all their studios operate freely. They just provide funding. Square keeps shooting themselves in the foot in their management as of late, and could definitely use oversight whether that be Microsoft or Sony. In this case I would prefer Sony purchase Square just based on partnership history, but there's been no complaints from any of XGS studios or ZeniMax.

  • +11
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dane007 ClassicGamingWizzz (on 07 February 2022)
  • -13
yvanjean ClassicGamingWizzz (on 07 February 2022)

Don't worry I don't think Microsoft is after those studios. Sega on the other hand is a prime target.

  • -1
Leynos yvanjean (on 07 February 2022)

MS already said they were not buying SEGA last year. The MS SEGA narrative was created by fans. Not MS.

  • +2
Livewitharya ClassicGamingWizzz (on 08 February 2022)

In my opinion, Square Enix is Japanese equivalent to Activision Blizzard. The way they treated some of their current and former studios like Crystal Dynamics & IO Interective, the respect for Square Enix is at all time low in my view. Same for Konami. Nintendo, Capcom, Sega, Koei and Bandai Namco are great though. But Square Enix should be bought out. The Japanese IPs with PlayStation and the western IPs with Xbox.

  • 0
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scrapking shikamaru317 (on 07 February 2022)

The Tango acquisition was announced all the way back in 2010. And I think it was a very small studio I think, at the time. I don't think anyone is saying it's impossible, just that there are a lot of hoops to jump through. So perhaps the hoops are far fewer or easier for a very small developer, than someone bike like Capcom, Konami, or Square Enix. Or perhaps it was easier back then. Or perhaps Zenimax was willing to jump through all the hoops to get Tango.

My suspicion is that it's a little of column A and a little of column C (easier with a smaller studio, and Zenimas was willing to jump through the hoops to get Tango).

  • 0
LudicrousSpeed shikamaru317 (on 08 February 2022)

Woah bro, there is way too much factual history and knowledge in this post. I can see why you got negged to death.

  • -2