Nintendo is buying the game developer it’s worked with for nearly 40 years

2022 continues to be a big year for mergers and acquisitions in video games, and now Nintendo is getting in on it. The company announced that it was acquiring long-time collaborator SRD Co. Ltd.

You may not know SRD by name, but the company has worked with Nintendo for nearly 40 years. In a major development, SRD came up with the idea that Mario could jump higher in the original Super Mario Bros. More recently, SRD has worked on Game Builder Garage, Ring Fit Adventure, and 1-2 Switch with Nintendo.

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Nintendo is buying 100% of the company’s outstanding shares for an undisclosed fee. SRD was founded in January 1979 and has since worked with Nintendo on a host of games.

Nintendo said the purchase of SRD will help “strengthen the management base” of SRD and “secure the availability of software development resources for Nintendo”. The Mario maker also said the purchase of SRD will help “facilitate an anticipated improvement in software development efficiency.”

Nintendo said the takeover will only have a “minor effect” on Nintendo’s overall business results.

In 2021, Nintendo bought another longtime collaborator, Next Level Games, the creators of the Mario Strikers series who are now gearing up to release Mario Strikers: Battle League in June.

The SRD takeover announcement comes shortly after Nintendo said it has no plans to buy many new studios, but there are always exceptions.

Outside of Nintendo, 2022 has already seen Take-Two offer to buy Zynga for $12.7 billion and Microsoft has made a $68.7 billion bid for Activision Blizzard.