Nintendo Makes Acquisition from Embrace, first since 2022

Remember when I said a few weeks ago that Embracer wasn’t done selling off bits of the business and doing the cost-cutting measures the last several months have seen? I think it is time to turn out the Jeremy Clarkson gif from the Top Gear Burma special because it is time for my smug face. Announced yesterday by Nintendo, the Japanese console, development, and publishing powerhouse is set to bring in another studio to its “slowly” growing system in the ever-expanding development cycle.

The one-page formal notice of acquisition notes that Nintendo will “Acquire 100% of the outstanding shares of Shiver Entertainment, Inc […] and to make it a wholly owned subsidiary.” Shiver Entertainment is known mostly for porting Hogwarts Legacy and Mortal Kombat 1 to the Switch, but also for developing the 2018 partly game Scribblenauts Showdown. Shiver Entertainment, prior to this intent to acquire, was owned by Embracer subsidiary Saber Interactive, which only acquired the developer alongside animation studio DIGIC Pictures (previously working on Elden Ring and beyond) in December of 2021.

According to Gamesindustry.biz, Nintendo President Shuntaro Furukawa said in the latest financial call of the acquisition, “We have continuously expanded our development resources over the past several years through the recruitment of recent graduates and mid-career hires.” Going on to say, “We will continue to actively work to secure the necessary development resources to increase the long-term value of our IP and to constantly offer unique entertainment proposals. Although development resources could be expanded through M&A, first we will work within the company with our developers, who thoroughly understand and have built up the Nintendo brand over the years, to have them nurture talent who can drive Nintendo’s future development.“

“In addition, many of our external development partners have gained a deep understanding of Nintendo’s way of thinking and game development methods over the many years of collaboration, and we would like to further strengthen our ties with such partners.” Eventually concluding his comments with: “The process of game development will inevitably become longer, more complex, and more advanced. It is vital that Nintendo offers consumers new and unique experiences through game development, so we will actively invest in expanding our development resources.“

The Acquisition notice similarly says: “Since its establishment in 2012, Shiver has partnered with publishers and developers through commissions for large[-]scale title developments, and recently, has worked on porting and developing software titles such as Hogwarts Legacy and Mortal Kombat 1. Nintendo will acquire 100% of the outstanding shares of Shiver and make it a wholly[-]owned subsidiary. By welcoming Shiver’s experienced and accomplished development team, Nintendo aims to secure high-level resources for porting and developing software titles. Going forward, even after it becomes a part of the Nintendo group, Shiver’s focus will remain the same, continuing commissions that port and develop software for multiple platforms including Nintendo Switch.“

The most interesting thing said through all of this is the simple line, “The Acquisition will be completed pending satisfaction of all relevant customary closing conditions.” Though reaffirming this acquisition, Embracer took to Twitter and thanked all those who worked for Shiver.

We would like to thank all the great people at Shiver for their contribution and wish them all the best with their new home, Nintendo. https://t.co/fmtMwy91Sn

— Embracer Group (@embracergroup) May 21, 2024