Nintendo enters alliance with DeNA to develop new games for mobile devices

On Tuesday, Japanese electronics and gaming company Nintendo announced that it is entering an alliance with Japanese mobile game company DeNA Co.

DeNA, which is based in Tokyo and was founded in 1999, has a reputation of an innovator and is one of the most successful of a new generation of Japanese technology companies. The company develops and operates a broad range of mobile and online services including games and e-commerce.

Nintendo has tied-up with DeNA in order to develop games for mobile devices. The alliance will combine Nintendo's intellectual property and game development skills with DeNA's expertise in mobile games.

Both the companies will focus on building apps for smart devices and setting up a worldwide membership service to launch this fall.

The alliance involves the two companies holding stakes in each other. Kyoto-based Nintendo will acquire about 15 million DeNA shares or a 10% stake and in return DeNA will acquire about 1.759 million Nintendo shares, or 1.24% of the company.

The companies at a hastily arranged press conference in Tokyo said that the payment is due April 2 and both acquisitions are worth 22 billion yen ($182 million).

Nintendo President Satoru Iwata confirmed that his company is working on a new dedicated console code-named NX. According to the companies, the new apps for the partnership will include iconic Nintendo characters but will not involve porting games developed for the Nintendo Wii U or 3Ds systems.

In reference to negativity related to the future of consoles Iwata said, "We do not share this pessimistic view of the future for dedicated video game systems. We are challenging ourselves to redefine what 'Nintendo platform' means".