Xbox parent company Microsoft spent a lot of money on Bethesda and Activision Blizzard, but its ambitions don’t end there. Many gamers now know Xbox head Phil Spencer’s desire to acquire gaming giant Nintendo. However, the Microsoft executive had also discussed the possibility of acquiring Steam operator Valve.
Microsoft Gaming CEO suggested acquiring Valve
Microsoft currently faces a legal battle with US regulators attempting to block the company’s acquisition of Activision Blizzard. Multiple legal documents have leaked to the media, including the one that revealed Phil Spencer’s suggestion that Microsoft buy Nintendo. However, the latest leak included a 2020 email from Phil Spencer hinting that the company has looked into acquiring Valve.
It is clear from the email that Xbox’s parent company considers Nintendo the more valuable option. However, Nintendo’s good financial situation makes both a voluntary merger and a hostile takeover impractical in the short term.
However, the final line of the email also suggests the company has taken a serious look at acquiring Valve.
“But our BoD has seen the write up on Nintendo (and Valve) and they are fully supportive on either if opportunity arises as am I.”
While the write up isn’t among the leaked documents, it seems that Microsoft’s interest in Valve extended well beyond a passing notion.
A different leak shared by analyst Piers Harding-Rolls reveals that Microsoft estimates Valve generated about $6.5 billion in revenue in 2021. Meanwhile, the company estimates that Nintendo makes more than twice that, generating $15.1 billion. That is only slightly less than Apple and Microsoft. Given that, it is no surprise that Nintendo is the preferred target, but that Valve might look more accessible.
Controlling Valve would also give Microsoft a near-monopoly on the digital distribution of video games. Fortunately, it doesn’t look like the software giant is in any hurry — at least not for the time being.
