February 1, 2021
Nintendo recently announced that it has entered into an agreement to acquire 100% of the outstanding shares of Next Level Games (“NLG”), a Vancouver-based game developer, in a rare acquisition for the video game giant. Acquisitions of video game developers is part of the core strategy for competitors Sony and Microsoft, but not for Nintendo. This acquisition would mark the first acquisition for Nintendo since acquiring Monolith Soft in 2007.
NLG has nearly two decades of experience creating games for various console platforms, but has recently worked exclusively with Nintendo creating titles for the Nintendo 3DS and Nintendo Switch platforms. This acquisition comes after the success of Luigi’s Mansion 3, a game developed by NLG. Luigi’s Mansion 3 is a top-selling title for Nintendo, having sold nearly 8 million copies since its release. With this acquisition, Nintendo will secure the availability of NLG development resources, and facilitate improved development speed and quality by increasing the flow of communication between NLG and Nintendo.
All of NLG’s outstanding shares are held by its owner-directors and employees. The acquisition is scheduled to close on March 1, 2021, pending necessary approvals and other customary closing conditions.
Author: Jay Piett