Mobile phone games maker DeNA and Nintendo have entered a “business and capital alliance for the joint development and operation of gaming applications for smart devices” the two companies announced today.
The two companies believe they can create new business opportunities by combining their strengths, and will jointly operate new game applications developed specifically for smart devices. These applications will feature Nintendo IP.
In addition to developing and operating smartphone games together, DeNA and Nintendo will also develop a new “core system,” which they say will be compatible with a variety of smartphones and tablets, as well as Nintendo’s own dedicated videogame platforms. A new membership service utilizing this system will launch in Fall 2015.
As part of their new partnership, DeNA is to allocate 15,081,000 of its treasury shares (corresponding to 10.0% of its issued shares, having a total value of about 22 billion yen) to Nintendo by means of a third-party allocation, and Nintendo is to acquire such shares in DeNa. At the same time, Nintendo is to allocate 1,759,400 of its treasury shares (corresponding to 1.24% of its issues shares, having a total value of about 22 billion yen) to DeNA, and DeNA is to acquire such shares in Nintendo.
Nintendo says this new alliance is not expected to have any effect on its business performance for the remainder of the fiscal year, which ends March 31st, 2015. “The expected impact upon future business performance is to be reflected in the forecasts of financial results for the next fiscal year onwards,” the company said in a statement.
Nintendo may be teaming up with DeNA to create games for smartphones, but that doesn’t mean they intend to stop creating games for dedicated videogame platforms. In fact, their next dedicated videogame hardware is codenamed “NX,” company president Satoru Iwata revealed at a press event today.
Iwata said it is currently too early to reveal details on NX, but that more details on this device will be shared next year. He did not provide any further details regarding what shape the device would take, but has said in the past that Nintendo’s next home console and handheld will both share a similar architecture and operating system.
During the joint press conference with DeNA, Iwata clarified that Nintendo will not port videogames created for dedicated consoles to smart devices. He went on to say that Nintendo intends to use smartphone games to draw consumers to their dedicated videogame platforms, and that the company maintains its passion for dedicated game devices and game experiences that offer good value to customers.
Update: During a Q&A session, Iwata was asked why the company chose to announce its next dedicated videogame console during a press conference about their partnership with DeNA. He replied that Nintendo chose to make the NX announcement so people would understand that Nintendo are not exiting the dedicated videogame business, and that the company “will be progressing with dedicated videogame devices with passion”.
My first reaction was that this is too early but actually the Wii U's been around for a while.
The console generations are kind of messed up now, though.
On the other hand, mobile Nintendo titles! Money money money!
Edited by Touch My Thighs, 20 October 2016 - 06:41 PM.