Nintendo [finance:Nintendo Co., Ltd.] made a strategic move on November 27, 2025, announcing the acquisition of Bandai Namco [finance:Bandai Namco Holdings Inc.] Studios Singapore to strengthen its development capabilities ahead of what many believe will be a massive 2026 with the Switch 2 launch. The Singapore-based studio will become Nintendo Studios Singapore and continue development operations as a subsidiary focused on creating in-game art assets. This follows Nintendo’s stated intentions earlier in November to expand internal development teams, continuing a pattern of strategic acquisitions that includes Nintendo Pictures in 2022 and Shiver Entertainment in 2024.
The Details of the Acquisition
Nintendo will acquire 80% of Bandai Namco Studios Singapore shares on April 1, 2026, subject to customary closing conditions. The remaining 20% will be acquired at a later date once the subsidiary’s operations have stabilized under Nintendo ownership. The official press release frames this as a move to strengthen the development structure of the Nintendo Group, acknowledging the studio’s existing contributions to Nintendo titles including the Splatoon series.
Bandai Namco Studios Singapore was established as one of Bandai Namco Group’s overseas bases with strong expertise in creating in-game art assets. The studio has maintained an ongoing business relationship with Nintendo, contributing development work to major first-party titles. Beyond Splatoon 3, the studio also worked on Kirby Air Ride and various high-profile Bandai Namco games, building a portfolio that demonstrates capability across different project types and art styles.
Nintendo stated in its investor announcement that the acquisition will have only a minor effect on the company’s financial results for this fiscal year. This suggests the purchase price, while undisclosed, isn’t significant enough to materially impact Nintendo’s bottom line. For a company sitting on massive cash reserves and no debt with an 83% equity ratio, acquiring a specialized development studio barely registers as a financial event even if it’s strategically important.
Why This Acquisition Matters Now
The timing of this acquisition is no coincidence. Nintendo faces a critical period ahead with the Switch 2 expected to launch before the 2026 holiday season. Goldman Sachs [finance:The Goldman Sachs Group, Inc.] resumed coverage of Nintendo stock earlier in 2025 with a Buy rating and a price target suggesting 20% upside, specifically citing expectations that the Switch 2 will drive hardware and software sales to record levels while engagement on the original Switch remains robust.
Securing dedicated art asset production capacity makes strategic sense when you’re preparing to support a new platform launch that will require significantly more development resources across your entire first-party lineup. The Switch 2 will presumably launch with major titles that need to showcase the new hardware’s capabilities, and every subsequent year will require a steady stream of releases to maintain momentum. Having an internal studio focused specifically on art production helps Nintendo scale its development pipeline without relying entirely on external contractors.
This acquisition also reflects Nintendo’s evolving approach to development. The company traditionally relied heavily on relatively small internal teams supplemented by external development partners. While that model worked for decades, modern game development requires significantly larger teams and longer production cycles. Major titles like The Legend of Zelda: Tears of the Kingdom and Splatoon 3 involved hundreds of developers across multiple studios. Bringing key partners in-house gives Nintendo more control over scheduling, quality standards, and intellectual property management.
The Splatoon Connection
Bandai Namco Studios Singapore’s work on Splatoon 3 is particularly significant because that franchise represents one of Nintendo’s most valuable modern IP. The colorful team-based shooter has grown from an experimental new property on Wii U to a genuine phenomenon generating billions in software sales and merchandise revenue. Splatoon 3 became the fastest-selling game in the series, moving over 3.45 million copies in Japan alone during its first three days.
Art style is fundamental to Splatoon’s identity. The franchise’s distinctive aesthetic combining vibrant colors, urban street culture influences, and squid-based character design creates instant visual recognition. Maintaining that look across sequels while evolving it appropriately requires specialized expertise. If Bandai Namco Studios Singapore handled significant portions of Splatoon 3’s art assets, Nintendo clearly values that capability enough to bring it entirely in-house for future installments.
With Splatoon 4 inevitably coming to Switch 2 at some point, having the art team that worked on the previous entry fully integrated into Nintendo’s structure ensures continuity and allows tighter collaboration with the core development team. This kind of vertical integration can significantly improve development efficiency and creative cohesion compared to managing external contractors.
Nintendo’s Studio Acquisition Strategy
This acquisition continues a pattern Nintendo has followed over the past few years. In October 2022, Nintendo established Nintendo Pictures, a new subsidiary focused on planning, producing, and developing visual content leveraging Nintendo IP. That move came after the massive success of The Super Mario Bros. Movie, which grossed $1.3 billion globally and proved Nintendo’s characters could dominate theaters just like they dominate consoles.
In May 2024, Nintendo completed the acquisition of Shiver Entertainment from Embracer Group. Shiver specializes in porting games to different platforms and had previously worked on bringing several third-party titles to Switch. Integrating Shiver gave Nintendo dedicated technical expertise in platform optimization and porting, valuable skills for managing a multi-platform strategy and potentially supporting backward compatibility on new hardware.
Each acquisition targets a specific capability gap. Nintendo Pictures addresses the expanding cinematic universe with a Zelda movie confirmed to be in development. Shiver Entertainment brings technical porting expertise. Bandai Namco Studios Singapore provides specialized art asset production. Rather than acquiring large established studios with their own IP and culture, Nintendo is strategically building out its internal capabilities by absorbing smaller specialized teams that already work well within Nintendo’s ecosystem.
This measured approach contrasts sharply with Microsoft [finance:Microsoft Corporation] and Sony [finance:Sony Group Corporation] spending tens of billions on massive studio acquisitions. Nintendo doesn’t need to buy Activision Blizzard [finance:Activision Blizzard, Inc.] or Bethesda to remain competitive. Their first-party IP is so valuable that strengthening development infrastructure to maximize output from those franchises generates better returns than gambling on integrating massive external publishers. When you own Mario, Zelda, Pokemon, Animal Crossing, and Splatoon, you don’t need Call of Duty.
The Southeast Asia Expansion Context
The Singapore acquisition also connects to Nintendo’s broader Southeast Asia strategy. In September 2025, Nintendo announced the establishment of Nintendo Singapore Pte. Ltd., a new regional branch designed to accelerate business throughout Southeast Asia. That entity handles marketing, distribution, and customer support across the region, reflecting Nintendo’s recognition that Southeast Asian markets represent significant growth opportunities.
Having both a business operations entity and a development studio based in Singapore creates synergies. The development team gains proximity to rapidly growing markets and potential local talent pools. The business team can work more closely with developers to ensure products resonate with regional preferences. Singapore itself offers favorable business conditions, skilled workforce, and strategic positioning within Southeast Asia’s gaming industry ecosystem.
This geographic diversification makes practical sense beyond just market access. Japan’s population is declining, and competition for top game development talent remains intense. Establishing development capacity in Singapore taps into different talent pools while maintaining reasonable timezone overlap with Nintendo’s Kyoto headquarters. The studio can collaborate effectively with Japanese teams while benefiting from Singapore’s multicultural workforce and English language prevalence.
FAQs
What studio did Nintendo acquire?
Nintendo announced the acquisition of Bandai Namco Studios Singapore on November 27, 2025. The studio will be renamed Nintendo Studios Singapore and become a subsidiary focused on creating in-game art assets. Nintendo will acquire 80% of shares on April 1, 2026, with the remaining 20% following once operations stabilize.
What games has Bandai Namco Studios Singapore worked on?
Bandai Namco Studios Singapore contributed to Nintendo titles including Splatoon 3 and Kirby Air Ride, as well as various high-profile Bandai Namco games. The studio specializes in creating in-game art assets and has maintained an ongoing business relationship with Nintendo prior to this acquisition.
Why is Nintendo acquiring this studio now?
Nintendo stated the acquisition is intended to strengthen the development structure of the Nintendo Group. The timing aligns with preparations for the Switch 2 launch expected in 2026, which will require significantly more development resources across Nintendo’s first-party lineup to support the new platform.
How much did Nintendo pay for the studio?
The purchase price was not disclosed. Nintendo stated in its investor announcement that the acquisition will have only a minor effect on the company’s financial results for this fiscal year, suggesting the amount isn’t material to Nintendo’s overall financial position.
What other studios has Nintendo acquired recently?
Nintendo established Nintendo Pictures in October 2022 for visual content production and acquired Shiver Entertainment from Embracer Group in May 2024 for platform porting expertise. Each acquisition targets specific capability gaps rather than buying large established studios with their own IP.
Will this affect Bandai Namco’s operations?
The acquisition only involves Bandai Namco Studios Singapore, not the broader Bandai Namco organization. This is a subsidiary transfer where Bandai Namco is selling one of its overseas development bases to Nintendo. Bandai Namco’s core operations and other studios remain unchanged.
Where is Nintendo Studios Singapore located?
The studio is based in Singapore, which positions it strategically within Southeast Asia. This complements Nintendo’s September 2025 announcement of Nintendo Singapore Pte. Ltd., a regional branch handling marketing, distribution, and customer support across Southeast Asia.
What does this mean for the Switch 2?
Securing dedicated art asset production capacity helps Nintendo scale its development pipeline for Switch 2 games. Major platform launches require showcasing hardware capabilities through visually impressive titles, and having internal art production teams ensures Nintendo can deliver a steady stream of polished releases.
When does the acquisition finalize?
Subject to customary closing conditions, Nintendo plans to acquire 80% of shares on April 1, 2026. The remaining 20% will be acquired after a certain period once the subsidiary’s operations have stabilized under Nintendo ownership. The studio will begin operating as Nintendo Studios Singapore following the initial closing.
Reading Between the Lines
This acquisition signals Nintendo’s confidence heading into the Switch 2 era and their commitment to controlling more of the development pipeline internally. The company watched Microsoft and Sony spend billions acquiring massive publishers while Nintendo quietly built specialized capabilities by absorbing teams already integrated into their ecosystem. It’s a characteristically Nintendo approach – measured, strategic, focused on their core strengths rather than chasing trends. The fact that they’re acquiring a studio specifically because of its work on Splatoon 3 shows how seriously Nintendo takes art direction and visual identity for their franchises. When you’re selling experiences rather than just technology specs, maintaining artistic excellence across sequels becomes critical. As Nintendo prepares for what Goldman Sachs and other analysts predict will be record-breaking years driven by Switch 2, securing the talent that helped make Splatoon 3 visually distinctive makes perfect strategic sense. Sometimes the smartest moves aren’t the flashiest ones.