Hello & good afternoon everyone
Both Nintendo and mobile game company DeNA have entered into a business and capital alliance to develop and operate new game applications for smart devices and build a new multi-device membership service for consumers worldwide, the company announced.
With DeNA who they have teamed up have teamed up
with Nintendo intends to leverage the strength of its IP and game development skills in combination with DeNA’s experience in mobile games to develop new game apps based on Nintendo’s IP. Through this, DeNA will also be able to strengthen its global game business. Rather than porting games created for Wii U r 3DS, only new original games optimized for smartphones will be created.
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,” Nintendo said in a press release. “Information on upcoming games and availability will be forthcoming.”
An online membership service accessible from smart devices, PCs, and Nintendo systems including Wii U and 3DS is also planned. It is planned for launch this fall and will be build on DeNA”‘s “extensive experience and capabilities in online membership services.”
Under the two companies’ 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. Payment is due April 2.
For starters, Nintendo president Satoru Iwata stated that no Nintendo IP would be off-limits to DeNA. That having been said, smartphone games require services that are constantly adapting and changing, and this will require a considerable combined effort from both Nintendo and DeNA. As a result, the two companies will narrow their focus to some extent, instead of releasing an extremely large number of titles.
Regarding the design of these games, Iwata stated that some smartphone games have a “notorious” reputation for overcharging consumers or being inappropriate for children due to their monetization schemes. Nintendo, he said, wish to avoid doing this and will make an effort not to indulge in unfair practices. In fact, Nintendo will be handling the planning and design for their smartphone titles. Meanwhile, DeNA will handle server development, daily operations, and user analysis, since those are the company’s strengths.
The revenue split between Nintendo and DeNA for their smartphone games will vary from title to title, Iwata said. The split will depend on the investment made by both companies in a particular game. It will not be dependent on the scope or scale of either company, but the resources spent by both on the title in question.
When asked why Nintendo chose DeNA to partner with, Iwata replied that while Nintendo have received offers from a number of companies, they chose DeNA because of their dedication to pursuing a relationship with Nintendo and because they hold talent in areas Nintendo are weak in. He also stated that he couldn’t say whether or not Nintendo’s partnership with DeNA will be a permanently exclusive deal, but for now, DeNA is the company they have chosen to partner with.
Nintendo has also stated that its DeNA alliance doesn’t mean it’s lost passion and vision for the dedicated video game system business, and went as far as to announce development on its next game platform, code-named “NX,” is underway with details are coming next year.
“As proof that Nintendo maintains strong enthusiasm for the dedicated game system business, let me confirm that Nintendo is currently developing a dedicated game platform with a brand-new concept under the development code-name ‘NX,'” Nintendo president and CEO Satoru Iwata said. “It is too early to elaborate on the details of this project, but we hope to share more information with you next year.”
View the announcement slides here
Watch the announcement press conference below. https://www.youtube.com/v/rNi6ZbMKh_w
Also as part of their alliance, Nintendo now own 10% of DeNA’s shares, making them the second-largest shareholder in the company, behind former DeNA CEO Tomoko Namba. Meanwhile, DeNA now own a 1.24% stake in Nintendo.
In addition to developing smartphone games with Nintendo, DeNA will also help the company create its new membership service, Nintendo said today. This membership service will be compatible with Nintendo 3DS, Wii U, PC, and smart devices.
During a Q&A at a joint press event with DeNA, Nintendo president Satoru Iwata confirmed that this new membership service will include a new royalty program to replace Club Nintendo, Which shut Down in Janary
While details weren't specifically shared on this front, Iwata has provided examples in the past
(<< Link leads to a article from Siliconera) leads of how the royalty program will allow discounts for frequent purchasers of games on Nintendo platforms.
Iwata Also hasn't discuss how the membership system will tie into Nintendo’s existing Nintendo Network service or if it will use Nintendo Network ID accounts (yet) . However, he did talk a little about how user data will be managed.
While Nintendo’s new membership service will be jointly developed with DeNA, Nintendo will own and manage all related user data, Iwata said. Some of this data will be shared with DeNA to allow them to develop smartphone games using Nintendo IP, but Iwata stated that both companies wish to avoid a situation where access to the user database is used in a negative manner.
DeNA CEO Isao Moriyasu added that accumulated data shared with DeNA will not be used for any separate kind of business by the company without consent from Nintendo.
The new membership service will launch this Fall. It is intended to be compatible with Nintendo and DeNA’s smartphone games, and also drive consumers to Nintendo’s dedicated videogame devices, such as the Nintendo 3DS, Wii U, and Nintendo’s
Iwata has also 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
(<< Link also leads to a article from Siliconera about earlier talks about the new console development older Q&A ) 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 Also asked why the company chose to announce the 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”