Why it matters: Nintendo will purchase developer Next Level Games, who have worked on several exclusive titles for Nintendo platforms. The Japanese giant wants to shore up another first-party studio to enhance its already impressive lineup of exclusive games such as Legend of Zelda: Breath of the Wild and Super Mario Odyssey.

Nintendo today announced its intentions to acquire Next Level Games (NLG). The studio is best known for developing Luigi's Mansion 3 and other Nintendo specific titles. In a short press release, Nintendo stated the purpose of buying NLG:

"Completion of the Acquisition will serve to secure the availability of NG development resources for Nintendo, including development expertise, as well as facilitate an anticipated improvement in development speed and quality by enabling closer communication and exchange of staff with the Nintendo development team."

Founded in 2002 in Vancouver, NLG has developed seven titles for Nintendo including the aforementioned Luigi's Mansion 3, Super Mario Strikers for Gamecube, Punch Out reboot for the Wii, and Luigi's Mansion: Dark Moon on the 3DS. Luigi's Mansion 3 was particularly well-received after its launch in 2019, selling over 7 million copies and earning numerous awards.

The success of Luigi's Mansion 3 likely played a hand in Nintendo's decision to purchase NLG and shore them up as first party developers. Additionally, Nintendo's press conference mentioned that "a number of owner-directors recently determined that the time is right for them to sell their shares." Neither Nintendo or NLG have disclosed the terms of the deal, though it's expected to close by March 1st.