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Monolith Soft Executive Producer (Hirohide Sugiura) On Going From Namco To Nintendo

On topic- interesting article. Glad to see Nintendo allowed them to still creatively do what they want while pushing their level of quality. I look forward to see what they work after X2.

Off-topic- in terms of acquisitions. I don't see Nintendo going out and buying more companies anytime soon. However, to go off in fantasy world and say what I'd like to see:

1. Mercury Steam- I think this development studio is reminiscent of other developers Nintendo has bought out such as Retro and Monolith. I'd also like to see Nintendo diversify its development scene and have a game studio in Europe. They could beef the team up a bit and split it into three divisions. One team that works on Metroid(whether 2D or 3D), Another team that works on AAA new ips or other Nintendo franchises, and a small team that assists other European developers with developing games on Nintendo systems.

2. Expand Retro and NST- Retro capable to work on two ambitious projects at once with a new ip and freedoms to do what they want being encouraged. The other team works on pre-existing Nintendo franchises such as Donkey Kong, Wario, Metroid, or Zelda. Retro, also has a team that works with and oversees projects from Monster Games, Next Level Games and other American game developers that Nintendo is publishing titles for. Retro team can coordinate projects like F-Zero or Diddy Kong Racing with Monster Games while working with Next Level Games on Luigi's Mansion.

NST is staffed back up to take on predominately different twists on Nintendo ips that may appeal to western audiences. Also has two smaller teams, one that develops experimental downloadable titles on Switch/Mobile and the other that works with American indie developers.

3. Platinum Games- about a 1% chance of this ever happening. However, have Sakurai/Sora oversee Platinum. Have Platinum split up into different teams that can take on multiple projects. Have one quarter of Platinum's output be taking on Nintendo ips such as Smash Bros., Kid Icarus, and Star Fox. Another quarter dedicated to new Nintendo owned ips includes W101. The remaining half developing games using 3rd party owned ips such as Bayonetta, Vanquish, Nier, Metal Gear Rising, Megaman, Okami, Jet Set Radio, etc.


None of that would ever happen in a million years but it's nice to dream.

I don't think the expansion of their own teams is something that wouldn't happen in a million years.
 
Real talk: they should have scalped all the talent from Eurocom after they shuttered. Or bought the studio before closure. Would have been a great FPS studio.
 

v1oz

Member
Real talk: they should have scalped all the talent from Eurocom after they shuttered. Or bought the studio before closure. Would have been a great FPS studio.
If Nintendo can get rid of devs like Left Field and Rare do you think they would purchase Eurocom?

Eurocom were a pretty average developer. I enjoyed their games but they were no where near the quality expected from a first or second party Nintendo studio.
 

Ridley327

Member
If Nintendo can get rid of devs like Left Field and Rare do you think they would purchase Eurocom?

Eurocom were a pretty average developer. I enjoyed their games but they were no where near the quality expected from a first or second party Nintendo studio.

Not to mention that I don't think Nintendo and Eurocom ever worked on a project together. n-Space would have been a more logical studio to buy with that in mind, and I don't think anyone was really that big on n-Space at any point.
 

-Horizon-

Member
I don't think there will be any nintendo buying studios anytime soon.
They seem content with just hiring them for projects.
And that seems to be working out for them so far.

Would it be nice for them to actually have more western studios? Sure.
 

Toxi

Banned
Isn't their staff in plenty flux as well? It seem Nintendo prefers to invest into stable environments where the human knowledge stays, and while serviceable both NST and Retro still seem like typical Western working places with people coming and going.
With Retro, we've seen that the turnover doesn't actually affect the quality or sales of their product.
 

Ridley327

Member
With Retro, we've seen that the turnover doesn't actually affect the quality or sales of their product.

There's definitely a culture at Retro that its former employees don't take with them, though it might be somewhat arguable that Bluepoint has become a more recognizable developer these days, though that is generally what happens when you have steady work and do a great job, as opposed to whatever the hell Armature keeps doing to scrape on by.
 

Terrell

Member
I don't think there will be any nintendo buying studios anytime soon.
They seem content with just hiring them for projects.
And that seems to be working out for them so far.

Would it be nice for them to actually have more western studios? Sure.

Umm, yeah, about that...

Tatsumi Kimishima said:
If our business enters an upswing and internal reserves increase, we would consider ways to use this effectively instead of simply keeping the cash on hand. This may include the purchasing of treasury shares or M&As.

This was in response to a question about their nearly 1 trillion yen in cash reserves. (Source: https://www.nintendo.co.jp/ir/pdf/2017/qa1706e.pdf)

Now, between the Switch selling gangbusters and the heaps of coin they've raked in from FE Heroes, I think "upswing" is selling the situation short.

They already have 15% or so of their available shares as treasury shares. This was Iwata's words on the high volume of treasury stock:

After we get through these changes in business environment and produce results from various new trials, we should start considering how to handle the treasury shares, including the retirement of the shares. Some say that a cancellation of treasury shares would boost the stock price, and there are also some examples in which it did not affect the stock price at all. Please allow us to continue to hold the current number of treasury shares until the end of this transition stage, as we might be able to make effective use of the shares for an M&A or business alliance during this time.

So they were continuing to hold treasury stock for M&As and business alliances like we saw with DeNA.

Treasury shares are bought for 4 reasons typically:

1) To retire shares and increase the value of all issued stock as a result (which has risks, as Iwata mentioned)
2) Preparation for delisting from the stock exchange
3) To protect against hostile takeovers
4) To use as bargaining chips in lieu of actual money when performing an M&A

3 of those scenarios aren't happening. Shares are still outstanding and not being retired, Nintendo is going to remain on the stock exchange and no one is planning a hostile takeover any time soon.

So.... make of all that what you will.
 

Shikamaru Ninja

任天堂 の 忍者
Not to mention that I don't think Nintendo and Eurocom ever worked on a project together. n-Space would have been a more logical studio to buy with that in mind, and I don't think anyone was really that big on n-Space at any point.

Cruisin' World was a first-party Eurocom project commissioned for Nintendo (NOA).

2. Expand Retro and NST.

Problem is Nintendo currently doesn't have an effective structure to manage global R&D. They actually took steps backwards, because the Iwata-era shutdown the NOA production arm that took off during the SNES/N64. Their structure now is to basically remotely manage their EU/NA projects through a small Japan production team. They seemingly tried to set up a Japan arm of their production team in Seattle - which produced the Big Fish, Sing Party and Lego projects. Can't say it really expanded much in scope.
 

The Giant

Banned
If Nintendo can get rid of devs like Left Field.

Nintendo didn't get rid of them. Left Field bought out Nintendo stakes in the company to be independent again.

Which I presume at some point, they might have regret doing that.
 
It looks like that they're already in pre-production on their next game, though I would have to imagine that the amount of staff on Xenoblade 2 right now is nowhere near full capacity, as they're in the polishing stage. That being said, with the size games that Monolith Soft makes, I don't think it really helps their development strategies to just double their numbers in the hopes that it means we get more large-sized games from them. Xenoblade X aside, and that was largely due to the foundations they had to build that's been paying off only now, they're a really consistent studio as it is in terms of their frequency of output, especially for the scale of games that they work on, so I don't see them particularly benefitting from a massive expansion.

It would help if they made a 100+ Studio out of Monolithsoft Kyoto and let make Honne a new game. I would kill for that. (He was responsible for Baten Kaitos if i remember correctly, also Art for Chrono Cross). Sure he helps Nintendo a lot with other stuff but it's a little bit sad that we see no new games from him.... Also there are other very talented people in Monolithsoft Kyoto, Nintendo should let them make their own thing.
 

@MUWANdo

Banned
If Nintendo can get rid of devs like Left Field and Rare do you think they would purchase Eurocom?

Eurocom were a pretty average developer. I enjoyed their games but they were no where near the quality expected from a first or second party Nintendo studio.

Nintendo wrings good games out of average developers all the time, the upcoming Metroid game being the most immediate example.
 

Instro

Member
Nintendo had nothing to do with Factor 5. Nintendo didn’t own any of Factor 5, they didn’t have any exclusivity deal with them. They liked working with Factor 5, and Factor 5 liked working with them, but there was no official partnership. Eventually Factor 5 chose to work with PS3 instead of Nintendo platforms, they made a terrible game, and then went out of business when the next project they were working on, that they had bet the company on, fell through (because the publisher went out of business).

Of course, my point was that it was a partnership that they could have retained rather than their ongoing system of "partnering" with developers and eventually losing them. Keep in mind Factor 5 was at one point working on a Kid Icarus game. Much like Retro they could have been bought for nothing and salvaged.

Nintendo was the first company that they offered their stake to, but they weren't exactly married to the idea that it had to be Nintendo. They wanted out and found someone willing to give them a price they liked. Who knows what price was discussed initially, but it is safe to say Nintendo was not going to be spending nearly $200 million to buy them out with how things wound up with the final purchase.

The IP lost, and the loss of a 200+ employee development house that carried the N64, damaged Nintendo far more than what they would have had to pay to keep the company.
 

Ridley327

Member
The IP lost, and the loss of a 200+ employee development house that carried the N64, damaged Nintendo far more than what they would have had to pay to keep the company.

We can only measure the damage based on how it actually played out in the long run, and you would have be delusional to think that Nintendo lost more in losing Rare than Rare lost in leaving Nintendo. Hell, the one IP that Rare managed to work on that stayed relevant since the sale was Donkey Kong Country, which Nintendo has always owned and didn't require them to produce another well-received and popular entry.
 

Datschge

Member
With Retro, we've seen that the turnover doesn't actually affect the quality or sales of their product.
Though it does seem to affect the development time needed for their games, which keeps increasing. One expands a studio when it has an efficient structure in place, this seems not to be the case with Retro (or NST).

They already have 15% or so of their available shares as treasury shares.
Just so that there's no confusion about the purpose: Nintendo didn't buy shares out of choice but by paying out the inheritors of late Yamauchi's shares.
 

Terrell

Member
Just so that there's no confusion about the purpose: Nintendo didn't buy shares out of choice but by paying out the inheritors of late Yamauchi's shares.

Yes. And Nintendo has held them since his death in 2013 when that transaction took place, rather than retiring the shares or putting them back into circulation. Holding 15% of your shares for 4 years is.... well, it's bad for business. When your stock is at a 5-year high, you're losing money holding onto treasury shares instead of putting them back in circulation or retiring them. So there would have to be a plan in place for them to hold them for as long as they have, which is why their investors don't seem to stop asking them about it, along with their excess of cash reserves.
 
NST seems like a lost cause. Unless they can go heavy into mobile duty, I'm not sure there's much reason to keep them around.

I do wonder what's up with RETRO. It's been 3 years and a half since their last game shipped and there's not even a teaser for what they have going. It's a bummer that Armature gutted the studio and likely made nintendo lose trust in their western studios while not resulting in a quality studio themselves.

I think Monolith Soft will eventually be known as one of Nintendo's best studios. I think they have more potential than Retro already. XCX is still the largest game Nintendo has put out even if BOTW is a better package. Tech wise they're very impressive and they've proven capable in the gameplay and story department as well. Hope that new project they're starting up allows them to show their abilities on another IP
 

Ridley327

Member
NST seems like a lost cause. Unless they can go heavy into mobile duty, I'm not sure there's much reason to keep them around.

I do wonder what's up with RETRO. It's been 3 years and a half since their last game shipped and there's not even a teaser for what they have going. It's a bummer that Armature gutted the studio and likely made nintendo lose trust in their western studios while not resulting in a quality studio themselves.

While they were leads that left, I'm not sure three guys counts for much of a gutting. That doesn't even sound like a flesh wound, really.
 

Datschge

Member
While they were leads that left, I'm not sure three guys counts for much of a gutting. That doesn't even sound like a flesh wound, really.
A quick count at Mobygames has 53 non-contract Retro staff working on Returns, of which 10 didn't work on Tropical Freeze and some further also seemed to work on contract basis, having different works between and after Retro's games. In any case that's not even the worrying part, the increasing development time with sequels that should be manageable in less time is.
 

Ridley327

Member
A quick count at Mobygames has 53 non-contract Retro staff working on Returns, of which 10 didn't work on Tropical Freeze and some further also seemed to work on contract basis, having different works between and after Retro's games. In any case that's not even the worrying part, the increasing development time with sequels that should be manageable in less time is.

You're forgetting that they helped out in a rather big way on Mario Kart 7 in order to get it out for 2011, so they weren't sitting around doing nothing between the DKC games. I'm not saying that Retro shouldn't be faster, but I think whatever reason why we haven't seen more out of them isn't due to a studio that was formed even before DKCR came out.
 

Datschge

Member
You're forgetting that they helped out in a rather big way on Mario Kart 7 in order to get it out for 2011, so they weren't sitting around doing nothing between the DKC games. I'm not saying that Retro shouldn't be faster, but I think whatever reason why we haven't seen more out of them isn't due to a studio that was formed even before DKCR came out.
Most of those 10 persons not working on Tropical Freeze are credited with games done by Bluepoint or Armature so that particular drain did continue after those studios' founding. As for Retro supporting Nintendo, I'm honestly surprised they didn't do even more.
 
There should be no worries about Retro. Its only been close to 4 years since they started their next project and it was caught in a weird time period when Nintendo was still trying to make the Wii U successful, then realized it wasn't going to be.

Retro could be working on very big project that would've taken 4 years to make for the Wii U (if it was successful), but due to them needing to change their game to the Switch could've added an extra year to that.

We will see their game before 2018 ends. I'm guessing it will be ready for 2018. Retro said to be patient on Twitter.
 
Buying MonolithSoft is the best decision Nintendo has made in ages. Both companies benefit a ton from each other.
Hopefully it starts paying off game sales wise since they are pretty talented there. It probably paid off quite a bit in the tech side, though
 
There should be no worries about Retro. Its only been close to 4 years since they started their next project and it was caught in a weird time period when Nintendo was still trying to make the Wii U successful, then realized it wasn't going to be.

Retro could be working on very big project that would've taken 4 years to make for the Wii U (if it was successful), but due to them needing to change their game to the Switch could've added an extra year to that.

We will see their game before 2018 ends. I'm guessing it will be ready for 2018. Retro said to be patient on Twitter.
I imagine a lot of projects started on Wii U and then got moved up to Switch, but I'm not sure the change of platforms would take that much time especially since we knew about Switch/NX since March 2015.
I guess it would've been more reassuring if they announced it this year, but I guess they didn't really need to yet. Could still come out next year


Sorry/double post
 
I imagine a lot of projects started on Wii U and then got moved up to Switch, but I'm not sure the change of platforms would take that much time especially since we knew about Switch/NX since March 2015.
I guess it would've been more reassuring if they announced it this year, but I guess they didn't really need to yet. Could still come out next year


Sorry/double post

I think it's all planned and Nintendo didn't see any reason to announce it this year. They know it'll probably be a very big title for them and want to save it for next year to announce.
 

expel

Member
Honestly Nintendo doesn't need more JPN acquisition l, they will still win in Japan with what they have. Western is where they need to strengthen.
 
Honestly Nintendo doesn't need more JPN acquisition l, they will still win in Japan with what they have. Western is where they need to strengthen.

Yep. Japan is fine. They need to worry about the west and strengthening their western studios.
 
I thought people here hated Mercury Steam. I mean, people called them mediocre and weren't happy that they were doing Metriod.

A lot of people weren't happy, but I think they started changing their mind once they saw gameplay. I also think it's a situation where working with Nintendo will be hugely beneficial for Mercury Steam (and obviously Nintendo as well).
 
http://www.neogaf.com/forum/showthread.php?t=152789

It's very true, people were laughing at how Nintendo got ripped-off, and look at where we are now.

Y2Kev posted

"Nintendo bought them so they could use the building to store all their money."

This got a chuckle out of me. There's quite a few good ones dissing Monolith


Edit: Who owns the rights to Baiton Kaitos? I never played it but would love to try it if it ever comes to VC or a sequel of it.
 

Harpoon

Member
Edit: Who owns the rights to Baiton Kaitos? I never played it but would love to try it if it ever comes to VC or a sequel of it.

Bandai Namco. I'd thought for a while that Nintendo got the rights, as they published the second game rather than Namco, but that's not the case.
 
Umm, yeah, about that...



This was in response to a question about their nearly 1 trillion yen in cash reserves. (Source: https://www.nintendo.co.jp/ir/pdf/2017/qa1706e.pdf)

Now, between the Switch selling gangbusters and the heaps of coin they've raked in from FE Heroes, I think "upswing" is selling the situation short.

They already have 15% or so of their available shares as treasury shares. This was Iwata's words on the high volume of treasury stock:



So they were continuing to hold treasury stock for M&As and business alliances like we saw with DeNA.

Treasury shares are bought for 4 reasons typically:

1) To retire shares and increase the value of all issued stock as a result (which has risks, as Iwata mentioned)
2) Preparation for delisting from the stock exchange
3) To protect against hostile takeovers
4) To use as bargaining chips in lieu of actual money when performing an M&A

3 of those scenarios aren't happening. Shares are still outstanding and not being retired, Nintendo is going to remain on the stock exchange and no one is planning a hostile takeover any time soon.

So.... make of all that what you will.
Thanks for the info. Certainly looks like they may be interested in making a game developer acquisition. Although, don't expect a major buyout from a company like Capcom, Platinum Games, Sega, Namco, etc. Funny enough during the GCN era Nintendo wanted to get majority share of Bandai and effectively buy them out. However, Bandai ended up merging with Namco later. Nintendo did at least get Monolith out of the whole thing so that's not a bad deal.
Cruisin' World was a first-party Eurocom project commissioned for Nintendo (NOA).



Problem is Nintendo currently doesn't have an effective structure to manage global R&D. They actually took steps backwards, because the Iwata-era shutdown the NOA production arm that took off during the SNES/N64. Their structure now is to basically remotely manage their EU/NA projects through a small Japan production team. They seemingly tried to set up a Japan arm of their production team in Seattle - which produced the Big Fish, Sing Party and Lego projects. Can't say it really expanded much in scope.
Yeah I recall. Doesn't mean they couldn't decide to reverse that decision and look to expand development in the western scene. RIP Project HAMMER and old NST, in some ways it reminds me of ARMS. Although didn't they make Super Mario Maker for the 3DS, that's a big step up for them. I'd rather see them make some strides in that direction to provide more variety in their output. Although I feel Tanabe overseas way too many projects and needs his workload reduced. Perhaps getting a more dedicated team to work exclusively with their internal western branches while Tanabe works exclusively with 3rd party developed games Nintendo is publishing or lending their ip to.
 
NST seems like a lost cause. Unless they can go heavy into mobile duty, I'm not sure there's much reason to keep them around.

I do wonder what's up with RETRO. It's been 3 years and a half since their last game shipped and there's not even a teaser for what they have going. It's a bummer that Armature gutted the studio and likely made nintendo lose trust in their western studios while not resulting in a quality studio themselves.

NST created the 3DS port of Mario Maker so they still have a use as a supplementary developer, but that Retro concern you got there is illogical. The exodus to Armature of some of their Metroid Prime team didn't actually do anything in regards Nintendo and its trust in its western studio because they still have quality output.
 
Bandai Namco. I'd thought for a while that Nintendo got the rights, as they published the second game rather than Namco, but that's not the case.


That sucks. So did Nintendo get any of the IP's with the purchase of Monolith? Because the Xenoblade series is a new IP made under Nintendo. Did Nintendo get any of the rights to the Xeno series the Monolith made under Bandai Namco?
 
Bandai Namco. I'd thought for a while that Nintendo got the rights, as they published the second game rather than Namco, but that's not the case.

Has Nintendo EVER bought an IP?

Seems like anything in their catalog originated from within, whether internally or alongside a 3rd-party (The Wonderful 101, The Last Story, and Pandora's Tower for example)

Sadly they lost some key ones, specifically Rare's. Nintendo did indeed own Rare's IPs at least in trademarks including Banjo and Killer Instinct. Rumor has it that Iwata was against the IPs slipping away and may have fought to retain then, but apparently the board of directors refused. That's what I recall folks saying, not sure if that came from an article directly sadly. If anyone has a legit source of that, please share! :)
 

Harpoon

Member
That sucks. So did Nintendo get any of the IP's with the purchase of Monolith? Because the Xenoblade series is a new IP made under Nintendo. Did Nintendo get any of the rights to the Xeno series the Monolith made under Bandai Namco?

No, Namco owns the Xenosaga series. I don't think Monolith had any pre-Nintendo series that they fully owned that would have been transferred with them to Nintendo.
 
No, Namco owns the Xenosaga series. I don't think Monolith had any pre-Nintendo series that they fully owned that would have been transferred with them to Nintendo.


First, thanks for the brief history lesson.

It's weird (especially reading from that old thread where Gaf laughed at Nintendo buying Monolith) that Monolith came to Nintendo with no IP'S because they do have a body of work. I'm not complaining because ultimately it resulted in the Xenoblade series which is currently one of my favorite series and it seems (from this thread) that Monolith has help Nintendo behind the scenes with their other games. This was a major "get" for Nintendo.

I'm not of the mind that Nintendo should just go out and buy out more dev teams for the sake of buying them. I am of the mind that maybe Nintendo should consider trying to aquire another team who can contribute a new IP or experience exclusively to their systems like Monolith has done.
 

HeroR

Member
A lot of people weren't happy, but I think they started changing their mind once they saw gameplay. I also think it's a situation where working with Nintendo will be hugely beneficial for Mercury Steam (and obviously Nintendo as well).

So Mercury Steam is kind of like Next Level Games? They make decent to mediocre games, but usually put their best efforts when under Nintendo's supervision?
 

jdstorm

Banned
UBI Milan would be a good choice if the Vivendi takeover of Ubisoft were to happen. Get that Mario: Kingdom Battle IP on lockdown. Plus given the development of Mario + Rabbids it seems like a good culture fit.
 
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