Say hello to iMario: Nintendo goes mobile as it buys 10% stake in DeNA

Nintendo is finally getting smart. In Tokyo today, the company announced that it is entering into a partnership with DeNA, the Japanese tech giant which rose to prominence on the strength of its smartphone games.

The agreement is as follows:

• Joint development and operation of gaming applications for smart devices using Nintendo’s intellectual property, including its characters

• Joint development of a new multi-device membership service that will span PCs, smartphones, tablets, Nintendo video games systems. The service is expected to launch in fall 2015

• Nintendo will acquire 10 percent of DeNA’s issued shares for JPY 22 billion (US$181 million) while DeNA will acquire 1.24 percent of Nintendo’s issued shares for the same price

Update

During the press conference Iwata and Moriyasu revealed that this deal had been in the works since last summer. With the partnership announced, they confirmed that consumers can expect games to appear by the end of this year.

The format of the games are a big question mark. DeNA has monetized many games by making them free to download, but then requiring in-game purchases to fully experience the game. That method is something which Iwata does not support. When asked how he would reconcile his views with DeNA’s tried-and-true method of generating revenue, he affirmed that he had not changed his mind about the so-called “gatcha” method. That suggests the companies are going to need to get creative to make this endeavour profitable.

Finally, Iwata let slip that Nintendo is developing a new gaming device – dubbed the NX. He promised further details next year, explaining that he mentioned it today in order to prove that Nintendo still sees the development of gaming systems as a core part of its business.

Isao Moriyasu, President of DeNA (l) and Satoru Iwata, President of Nintendo (r)