Nintendo and MS - Buddies?

[JRMacumber]

http://www.gamerfeed.com/index.php?story=3547

Rumor: Nintendo and Microsoft to Partner?
By James Brightman -- Staff Writer
Published 9:06 PM CDT June 12, 2003

It could happen and is not as crazy as you might think. Get the scoop (even two scoops with sprinkles) inside...

A recent article on SPOnG.com, discusses some very interesting things. First of all, they claim that senior development sources in the UK have revealed to them that Microsoft will use ATi as its graphics chipset provider and not nVidia. Reportedly, Microsoft has just become very weary of the whole arbitration it finds itself in with the former graphics chipset provider. Neither nVidia nor Microsoft was willing to comment on the matter.

Whether or not that first tidbit is true remains to be seen. Nevertheless, here is the juicy part that made you click on this story in the first place.

"Both firms have their eyes on Sony's massive market share and as such, an unofficial affiliation has formed between the two. At E3 this year, representatives from Nintendo and Microsoft were seen talking jovially together and there is back-slapping all round when any Xbox or GamCube title takes software sales away from the PlayStation."

"But it's more than that. Microsoft and Nintendo in the US are practically next-door neighbours in Redmond, Washington. They are socially active together and there is no bitterness between the two. As both firms have different goals, Nintendo to continue to release gaming consoles, and Microsoft to steal Sony's dream of a media delivery hub for the living room, there is no direct conflict of interest as the market, with a smaller Sony, is big enough to support this."

Very interesting indeed. Could the M&M boys (Mario and Master Chief), as I'm now calling them, actually team up and knock Sony off its pedestal? Only time will tell.

Discuss...

[Super Stu]

Similar article over at El Reg

Microsoft has dropped Nvidia in favour of the graphics chip maker's arch-rival, ATI, as the provider of the graphics technology to be incorporated into its as yet unannounced next-generation Xbox console.

So says a report on Internet gaming-oriented web site Spong, citing "senior development sources in the UK".

Certainly Microsoft and Nvidia haven't had any easily relationship during the life of the current Xbox. The highly competitive and price-sensitive nature of the console market required Microsoft to be flexible on price. Nvidia is believed to have been decidedly inflexible when it came to helping the software giant achieve its pricing goals. Microsoft wanted to pay less for its chips than originally agreed, but Nvidia (quite understandably) stuck to its guns.

If the Spong report is correct - and neither side has chosen to comment beyond the usual 'we don't discuss rumours' - the two companies' quarrel has proved too much, and Microsoft has decided to look elsewhere for a partner to deliver Xbox 2 graphics and support chipsets.

But more prosaic reasons may lie behind the decision - if such as decision has been taken. ATI has a Pentium 4 bus licence from Intel; Nvidia does not. Microsoft would undoubtedly be looking at a more advanced CPU for Xbox 2 than the current console's Pentium III, and the P4 is a logical step up.

If there is an ATI connection, then that would seem to preclude the use of an AMD chip, for which Nvidia would be the most logical partner thanks to its nForce expertise. Indeed, the current Xbox's chipset is essentially an nForce geared to work with a PIII.

ATI is nevertheless a problematic partner for Microsoft as it is already Nintendo's chosen graphics contributor for the next-generation GameCube. Or is that a problem? Spong suggests that Nintendo and Microsoft are natural allies against market leader Sony - my enemy's enemy... - and this opens the door to co-operation between the two, with ATI as a third member of the alliance. ?

Question: How do you make a profit on a highly modular piece of kit such as the Xbox? You're relying on 3rd parties to reduce supply costs rather than first party r&d improving integration.

I don't doubt they have a plan somewhere, but I'm buggered if I can see it.

[Lyris]

I thought it was all ruthless slashing and competition nowadays in gaming - very refreshing to hear.

[Burai]

Spong are so ****.

Both firms are based in Redmond, so obviously you're going to get peeps from both firms meeting up socially and knowing each other outside of work and this may well spill over onto the E3 show floor.

Nintendo US and Micosoft workers have drinks down the pub = Massive merger... but only if you're Spong...

[womblingfree]

Makes perfect sense. Nintendo developement plus Microsofts bottomless pockets.

All they need to do now is buy EnixSquare and Sony and they will be at number one again. Maybe.

[snowman]

OMG I hope to dear god nooooo.

But even in this book I have (microserfs) they mention that they all go see ninty peeps from ms And that's just A fictional book... So it sounds more like what burai is saying TBH!

[Max M]

Spong...

[srgbilco]

Didn't MS approach Nintendo with a merger offer, but Nintendo ultimatley declined?

I don't think this would happen anyway. As the article states, they are after two different markets; Nintendo a purely gaming one and MS the media hub. In addition, Nintendo have always had a thing for proprietary (sp?) media, something which an MS console would never allow. And then there's the licensing fees, which would be a big income for Nintendo, something they'd have to hand over as well.

I don't think Nintendo is ready to do a Sega and go software only. Even if they did, I doubt they would ally themselves with a company with the weaker market share. Software publishers and devcos obviously depend on getting the most possible sales of their games, and with no exclusitivity problems like that with GameCube right now, Nintendo would most likely go multi-platform, or at least stay with the bigger market share, probably Sony, for a cash bonus for exclusitivity for some of it's system-selling games, like Mario or Zelda.

[MonkeyWrench]

I nearly ended up working for Spong, glad I didn't if that's the kind of cack I would have to write. Gamerfeed aren't too hot either, they take a "Xbox 2 to use ATI chip" rumor and turn it in to a "Nintendo and Microsoft to Partner?" story. Very poor journalism.

[Oh! My Car!]

no thanks

[Lyris]

Spong were implying that they were going to merge?
Umm.... how do they come to this conclusion

[SonicMarmalade]

Wow. Gotta love it when you can predict a consoles design and components a year before any preliminary announcements about announcing any announcements about announcing stuff. So much for `innovation`.

<may as well get paid to design xbox 3 pose>

<might get stus input as well pose>

<would be stus boss pose D>

<triple pose combo multiplier pose>

[Popo]

Er, I'd treat any rumour that originated from Spong as probably less than founded in truth. They make up stuff and let their own imaginations run away with them that they end up running some ludicrous stories (anyone remember the "OMG!!! Sega making a new console cos Naka said so!" story that was pulled after a few hours?).

Nintendo US and Micosoft workers have drinks down the pub = Massive merger... but only if you're Spong...

Exactly. They take a little bit of info and turn it into a completely unfounded news story.

[Commander Marklar]

Question: How do you make a profit on a highly modular piece of kit such as the Xbox? You're relying on 3rd parties to reduce supply costs rather than first party r&d improving integration.

I don't doubt they have a plan somewhere, but I'm buggered if I can see it.

You ain't supposed to see it man...

1) Produce console that is dependant on everyone else for the bits.
2) ???
3) Profit!

Easy...

On a side note, I always love it when there is this air of competition and hostility around company rumours and such, like MS hates Nintendo 'cos they're competitors or whatever; it really doesn't work like that at all and it makes me laff

[nips]

The only way that the two could ever merge or have closer relations is if they got more money that way...

At the moment I remain unconvinced that they would, only time will tell.