The age of consolidation continues as Nintendo buys a long-lived acquaintance in the industry, Systems Research, and Development, most commonly referred to as simply SRD Co Ltd. Nintendo announced the purchase on Thursday, Feb. 24, in a pdf circulated across the web.
In its announcement, Nintendo did not disclose how much it will be putting up to acquire the Tokyo-based SRD, but the duo have had a seemingly long history - so long it dates back to the NES port of Donkey Kong. SRD will become a Nintendo studio officially come Apr. 1, per Nintendo's release.
Since 1983, SRD and Nintendo have together delivered some of the most beloved experiences, the main among them being two of Nintendo's biggest releases in the past few years, 2019's Zelda: Breath of the Wild and 2020's Animal Crossing: New Horizons, to name only a few.
SRD has likewise assisted in more varied experiences, specifically the smartphone-based Mario Kart Tour, as well as 2021's Game Builder Garage. Nintendo's niche real-world interactivity product, Nintendo Labo, likewise comes from the brilliant minds under SRD, who devised the various cardboard offerings that make the Labo so unique.
While both Sony and Microsoft busy themselves with meteoric purchases the likes the video game industry has never seen before, Nintendo often strays away from news-setting and industry-shaking buyouts of the same ilk. Before its most recent acquisition of SRD, Nintendo's last purchase was in early 2021 when it bought Next Level Games, which is now developing the highly anticipated Mario Strikers.
Like SRD, the Vancouver-based Next Level Games likewise aided in various Nintendo software development cycles, specifically Luigi's Mansion 3. As of writing, both Next Level Games and SRD are thus far the only outside studios Nintendo has outright purchased, highlighting the unstated exclusivity these two studios now share in boasting pure Nintendo ingenuity.
Says Nintendo head Shuntaro Furukawa following the company's most recent sales report (via Bloomberg):
"Our brand was built upon products crafted with dedication by our employees, and having a large number of people who don't possess Nintendo DNA in our group would not be a plus to the company."
Clearly both SRD and Next Level Games fit the bill. Nintendo gave no word on why it decided to acquire SRD now following nearly 40 years of service under the family-friendly video game giant. In its release, Nintendo cites "to strengthen the management base of SRD" in addition to bolstering its own lineup of software under "Purpose of Acquisition," thus concluding that the merger will be as welcoming to Nintendo as it will be for SRD.
With Microsoft spending nearly $70 billion on Activision Blizzard alongside Sony's most recent $3.6 billion purchase of Bungie, it's clear now is the age of consolidation in the video game industry. Despite these manifestations, Nintendo still remains in its own corner of blissful resolve, pumping out some of the most tantalizing and inspiring content on a platform that is both mobile and not.
Where next the Nintendo Switch will take us provided via SRD's brilliant assistance is anyone's best guess, but tune into Pokémon's official YouTube channel come Feb 27 to see what the electric mouse and friends have in store for fans.
