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Nintendo Partners with DeNA to Bring Their IP to Smartphones
In a somewhat surprising news Nintendo has announced a partnership with Japanese mobile software giant DeNA to establish a new infrastructure and membership system across all platforms (3DS, Wii U, NX, PCs, Smartphones, Tablets, ect.) and bring their IP to the mobile market. The two companies are now heavily invested in each other with Nintendo being a 10% (and the 2nd largest) shareholder of DeNA. The two companies plan to work together to bring this connected membership program (which will replace Club Nintendo) and the first smartphone games to the market by the end of the year.
Nintendo have told skeptics not to worry about a complete transformation into a software company, as their main focus will still be on their own hardware and making quality software for it. They've also said that all mobile games will be completely new software, and they won't be porting games from their own hardware. In fact, they've also very vaguely announced that they're working on a new piece of hardware codenamed "NX" that will be revealed in 2016. Very little is known about what platforms the first games will be released on and which IP Nintendo will bring to the mobile market. Stay tuned for more information and hit the break for the full press release!
TOKYO, JAPAN – March 17, 2015 – Nintendo Co., Ltd. (Tokyo: 7974) and DeNA Co., Ltd. (Tokyo: 2432) today entered into a business and capital alliance to develop and operate new game apps for smart devices and build a new multi-device membership service for consumers worldwide.
Leveraging the strength of Nintendo’s intellectual property (IP) and game development skills in combination with DeNA’s world-class expertise in mobile games, both companies will develop and operate new game apps based on Nintendo’s IP, including its iconic game characters, for smart devices. The alliance is intended to complement Nintendo’s dedicated video game systems business and extend Nintendo’s reach into the vast market of smart device users worldwide. Under the alliance, DeNA will also be able to strengthen its gaming business at a global scale by leveraging Nintendo’s IP. To ensure the quality of game experience that consumers expect from this alliance of Nintendo and DeNA, only new original games optimized for smart device functionality will be created, rather than porting games created specifically for the Wii U home console or the Nintendo 3DS portable system.
In order to create completely new game experiences for smart devices, all Nintendo IP will be eligible for development and exploration by the alliance. As these consumers enjoy the unique kind of gameplay found only with Nintendo, they will have the opportunity to explore even more premium experiences on Nintendo’s dedicated video game platforms. Information on upcoming games and availability will be forthcoming.
Nintendo and DeNA also plan to develop an online membership service that is accessible from smart devices, PC and Nintendo systems, such as the Nintendo 3DS portable system and the Wii U home console. The membership service, which is targeted to launch in the fall of 2015, will be built on DeNA’s extensive experience and capabilities in online membership services.
As part of the long-term relationship and commitment by each company, Nintendo and DeNA have also agreed to form a capital alliance. Under the capital alliance, Nintendo will acquire 15,081,000 of DeNA’s treasury shares, which corresponds to 10.00 percent of its total outstanding stock, for a total of approximately 22 billion yen. DeNA will simultaneously acquire 1,759,400 of Nintendo’s treasury shares, which corresponds to 1.24 percent of its outstanding stock, for a total of approximately 22 billion yen. The payment is due April 2, 2015.