Microsoft Unlikely to Acquire Studios From Japan, Analysts Say
Who will be Microsoft's next acquisition after Activision Blizzard? Not likely a studio or publisher from Japan, as Serkan Toto of Kantan Games doesn't believe Xbox is likely to make a successful „purchase” in that country.
- Nathan Brown (former editor of Edge) and Serkan Toto (head of Kantan Games) don't believe Microsoft can buy a Japanese developer;
- Toto points to Japanese companies' reluctance to investmentsd from abroad as the main reason why any acquisition by Microsoft in Japan borders on the miraculous;
- Sony has a better chance, although it too may not necessarily be tempted to buy one of Japan's leading publishers.
Following Microsoft's recent acquisition of Activision Blizzard and Bungie by Sony the whole internet is wondering which well-known developer or publisher will be the next "purchase" of one of the giants. Phil Spencer from the Xbox division has been dreaming about a Japanese devteam for a long time, but chances are he'll have to do without.
At least that's what Nathan Brown, author of the Hit Points newsettler and former editor of Edge. According to the journalist, Microsoft may have great difficulty in acquiring major studios in Japan. In fact, Serkan Toto from Kantan Games, quoted by Brown, even said that "in some ways" an acquisition of a major Japanese publisher by Microsoft would be a bigger deal than the purchase of Activision Blizzard.
The main reason for Toto and Brown's skepticism is Japanese publishers' aversion to foreign capital. On the one hand, this is due to the secure financial situation of Microsoft's potential "targets", who are thus unlikely to be bought out by other companies.
On the other hand, the Japanese actively counteract such moves. We are talking about the so-called keiretsu - groups consisting of representatives of unrelated markets that cooperate with each other or even hold small shares in friendly companies.
Admittedly, the role of the system has significantly weakened these days, but the idea of "supporting your own" against "outsiders" is still alive among Japanese businessmen. Suffice it to mention that in 2019 Japan ranked last out of 196 countries in terms of direct foreign investments.
Microsoft's case is not made any easier by the fact that many video game companies also have completely unrelated businesses. Konami has its gyms and Sega is investing in hotels, casinos, resorts, etc. On top of that there are the differences in customs and language that can be expected when dealing with different cultures.
This does not mean that Serkan Toto rules out big takeovers on the gaming market in the Land of the Rising Sun. Only that it is not Microsoft that can expect successful "purchases", but Sony. As a Japanese company, the giant from Tokyo has an obvious advantage over Xbox Game Studios. However, even in this case, Toto stresses that Sony is not necessarily thinking of a takeover on the scale of Microsoft's recent acquisition.
