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Nintendo Acquires Shiver Entertainment from Embracer Group

For an undisclosed fee
by Joe Wilcock on May 21, 2024   



Nintendo announced today its acquisition of Miami-based Shiver Entertainment. The development studio, renowned for porting popular titles such as Hogwarts Legacy and Mortal Kombat 1 to the Nintendo Switch, will now operate as a wholly-owned subsidiary of Nintendo. The purchase involves acquiring 100% of the outstanding shares from Embracer Group, a gaming conglomerate.

Nintendo's acquisition of Shiver Entertainment marks its first studio purchase since 2021, when it acquired Next Level Games, the developers behind Luigi's Mansion 3. The decision underscores Nintendo's intent to bolster its internal resources for software development and porting.

"By welcoming Shiver’s experienced and accomplished development team, Nintendo aims to secure high-level resources for porting and developing software titles," the company stated in its press release. Nintendo emphasized that Shiver’s operational focus will remain consistent, continuing its work on porting and developing software for various platforms, including the Nintendo Switch.

Shiver Entertainment has built a reputation for its expertise in adapting games for multiple platforms, an asset that Nintendo evidently values. The integration of Shiver into Nintendo's structure is expected to enhance the company's capability to deliver high-quality ports of popular games to its console.
 



“The acquisition will be completed pending satisfaction of all relevant customary closing conditions,” Nintendo mentioned, indicating that standard regulatory and procedural checks are yet to be finalized. The company assured stakeholders that the purchase will have "only a minor effect" on its financial outlook for the fiscal year.

Industry analysts view this acquisition as a strategic alignment with Nintendo's broader goals of maintaining a strong pipeline of games for the Switch. "Shiver Entertainment brings a proven track record of successful game ports, which is crucial for Nintendo as it seeks to sustain the momentum of the Switch," commented Robert Hamilton, a market analyst at Digital Ventures.

Shiver Entertainment's transition to a Nintendo subsidiary is not expected to disrupt its current operations significantly. The studio will continue to fulfill existing and future commissions for various platforms, albeit now under the aegis of Nintendo. This approach ensures that Shiver's expertise benefits both Nintendo and the wider gaming market.

The financial terms of the deal have not been disclosed, but the impact on Nintendo's annual financials is anticipated to be minimal, indicating a strategic rather than a purely financial acquisition.

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