Topic: Nintendo and DeNA Form Business and Capital Alliance

[azeke]

http://dena.com/intl/press/2015/03/nintendo-and-dena-form-business-and-capital-alliance.html

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.

This basically means that they're gonna let DeNa do games with Nintendo characters as advertisements of sorts for actual Nintendo games.

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.

Now that's the most interesting part -- could this be an unified account system? But if it's gonna be run by DeNa how are supposed to carry it through generations not drop it like they did with GameSpy's network?

[broodwars]

I'm not sure how to feel about this, especially since jumping into mobile development has pretty much been the death knell of the Japanese gaming industry the last few years. On the one hand, it's inevitable and the shareholders probably weren't going to let Iwata ignore it much longer. On the other, I've spent a fair amount of time with mobile games lately, and they are probably 99.999% total ****. We'll see how this goes. Sony's tie-in mobile games haven't been offensively bad, so maybe it'll work for Nintendo.

[azeke]

We'll see how this goes. Sony's tie-in mobile games haven't been offensively bad, so maybe it'll work for Nintendo.

I am watching live-stream conference with Iwata, the way he is saying it, it seems it goes deeper than just tie-in games and that Nintendo itself will be developing them.

Also Iwata has just confirmed they're developing a "new mobile platform with a new paradigm" called Nintendo NX (3DS successor?) to be revealed next year.

"New paradigm" probably means they have a new gimmick like they had with 3d for 3ds and touch controls for DS.

[azeke]

Presentation in english:
http://www.nintendo.co.jp/corporate/release/en/2015/150317/index.html

[azeke]

Nintendo/DeNA account system is confirmed to be Club Nintendo replacement with consumer loyalty program.

[Enner]

Nintendo press release:
http://www.nintendo.co.jp/ir/pdf/2015/150317e.pdf

And azeke has linked to the presentation slides.

(1) Joint development and operation of gaming applications for smart devices using Nintendo’s intellectual
property (“Nintendo IP”), including its characters

Nintendo and DeNA intend to jointly operate new gaming applications featuring Nintendo IP, which they will
develop specifically for smart devices. Consequently, Nintendo expects to benefit from new business
opportunities as more consumers encounter Nintendo IP, and DeNA expects to strengthen its core business of
mobile gaming internationally through the use of Nintendo IP.

(2) Joint development of a new multi-device membership service

Nintendo and DeNA expect to develop a new core system compatible with a variety of devices including PCs,
smartphones and tablets as well as Nintendo’s dedicated video game systems, and are to jointly develop a
membership service utilizing this system, with a launch targeted for the fall of 2015. The companies expect to
further enhance their customer relationships through the membership service.

In addition to the business alliance described above, the two companies agreed to a capital alliance in order to
create synergies between their businesses and strengthen their relationship in the medium to long term.

Since I've been playing and enjoying a few Japanese mobile games (mobage!), I do look forward to what Nintendo and DeNA do for Nintendo's mobage. It took Iwata a long while to cave to investors. Maybe he just wants them to stop asking the same question year in and year out.

I'm hopeful that DeNA will improve Nintendo's online account system. While it would be drastic to see Nintendo Network ID be trashed, I'm not ruling out the possibility. This is long over due and I hope DeNA builds something nice for Nintendo.


As for what's NX? Who knows! Is 2016 only when we'll hear more about it, or when NX comes out (sweet, swift death for the Wii U)? What a wild, unknown future that has just opened ahead.

[Shaymin]

If they're announcing the thing in Japan, there's a 99% chance it's a 3DS followup.

[Nile Boogie Returns]

This feels strange. Need more info...and coffee.

[Adrock]

Nintendo has been hinting at this for a while. It was going to enter the mobile market eventually so the question wasn't if but when.

I doubt these games are anything like what most are expecting. I've already seen one site say "fingers crossed for a full Pokemon game coming to iOS soon." I think people are going to be really disappointed if they think Nintendo is making anything remotely close to the scale of Pokemon X/Y for smartphones. Nintendo may redefine the value and quality of mobile games (like it did with DLC), but if people want the full experience of Mario, Zelda, Pokemon etc., they will still need to buy dedicated Nintendo hardware. Like motion control games on Wii, these mobile games and apps are likely meant as "gateway drugs" to the games Nintendo really wants to sell people. Any converts are people who weren't buying Nintendo products before anyway.

I'm already rolling my eyes at anyone who thinks this is the beginning of the end for Nintendo's hardware business. That isn't going anywhere. Nintendo has likely agonized for years on how to leverage the mobile market in a way that benefits its own hardware. I don't think Nintendo is worried about cannibalization because while mobile games and console games are both categorized under the general "games" umbrella, there's very little overlap as far as experiences go. Nintendo wants people to transition to its dedicated hardware. Not sure how many people actually will, but it's worth exploring.

As for NX, what if it's actually "N Cross," a console-handheld hybrid?

HashtagBlackNMild

(I'm still betting on Nintendo going one more generation of keeping console and handheld separate.)

[Evan_B]

Trust me, BnM, I speculated the same thing about a month or so ago and everyone told me I was wrong.

So... you're wrong.

As for this info, I'll comment on it in more depth when there's a bit more information on the subject. I'm glad Nintendo is at least admitting they don't know how to do a membership program.

[MagicCow64]

I'm mainly hoping that they're not succumbing to the games-as-service model. That's where I take my hat and leave. I'm not sure what else the focus on the service could mean, though; I kinda doubt a buffed Club Nintendo or unified account would really qualify. Maybe it would be okay if they pulled the trigger on the long-conjectured Netflix-of-games idea, where a monthly subscription would get you access to the entire past and present Nintendo library (PS Plus on steroids), but even then I really don't like the service model.

[Spak-Spang]

What if Nintendo was working on a new gimmick which was a 100% unified closed market os, that can run on top of another os...like say Andriod or Apple.  Then Nintendo could use its hardware division to develop a top of the line controller for devices.

Then they could sell a cheaper none phone portable device geared for gaming with this new os.  Finally, a home console would be included in the plan.  It runs on the same OS but is more powerful.  Games are all purchased into one unified account with 3 times of games.  NintendoM are portable games, but can also beplayed on the home console.  NintendoHome are only playable on the console unit....and the majority of the games would be NintendoCross which can be played on both, with upscaled graphics for the home, and perhaps unique experiences for the portable...this is a system generation I can support.

[Dasmos]

I'd pay for a 8-bit Mario-themed endless runner for my phone. Please make it happen, Nintendo.

[Adrock]

Trust me, BnM, I speculated the same thing about a month or so ago and everyone told me I was wrong.

BlackNMild has been pushing the hybrid idea hard for a couple years now. And even then, it's something that has been kicked around by everyone for years before that.

So... you're wrong.

Subtle. The spirit of TJ lives on, it seems.

I was mainly musing on the codename. I'm not convinced Nintendo is willing to give up this business model. It wants to sell people two separate devices. Nintendo has historically had to be dragged kicking and screaming away from its old ways so I'd be surprised to see a hybrid sooner rather than later. I don't want to get too far off topic though. If I'm not too lazy later, I'll finally start a new thread I've been meaning to post.

[marvel_moviefan_2012]

Trust me, BnM, I speculated the same thing about a month or so ago and everyone told me I was wrong.

BlackNMild has been pushing the hybrid idea hard for a couple years now. And even then, it's something that has been kicked around by everyone for years before that.

So... you're wrong.

Subtle. The spirit of TJ lives on, it seems.

I was mainly musing on the codename. I'm not convinced Nintendo is willing to give up this business model. It wants to sell people two separate devices. Nintendo has historically had to be dragged kicking and screaming away from its old ways so I'd be surprised to see a hybrid sooner rather than later. I don't want to get too far off topic though. If I'm not too lazy later, I'll finally start a new thread I've been meaning to post.

This is kicking and screaming. The market has been demanding this for a decade so its not like it is a brand new idea just recently thrown out there.

[Adrock]

Well, so much for trying to stay on topic. I'll just address in a new thread.

[Soren]

So...I'm confused. Can we clear things up a bit because it seems there are about 5 different announcements with different levels of overlap here. Stop me if I'm wrong.

1) Nintendo and DeNA are partnering to bring Nintendo IP to mobile devices and PCs.
2) Nintendo and DeNA are partnering to to create an online service, including the Club Nintendo replacement. Is this the membership service that Iwata was talking about, the unified account that will stretch across all Nintendo platforms?
3) Nintendo has announced the NX, a "dedicated game platform with a brand-new concept". We don't know if it will be the replacement for Wii U, 3DS, both, or if it will be a third pillar gaming platform.

In addition:
- Only new games for mobile devices. No ports of existing games.
- None of this has anything to do with the QoL platform.

Is this correct?

[Khushrenada]

So...I'm confused. Can we clear things up a bit because it seems there are about 5 different announcements with different levels of overlap here. Stop me if I'm wrong.

1) Nintendo and DeNA are partnering to bring Nintendo IP to mobile devices and PCs.
2) Nintendo and DeNA are partnering to to create an online service, including the Club Nintendo replacement. Is this the membership service that Iwata was talking about, the unified account that will stretch across all Nintendo platforms?
3) Nintendo has announced the NX, a "dedicated game platform with a brand-new concept". We don't know if it will be the replacement for Wii U, 3DS, both, or if it will be a third pillar gaming platform.

In addition:
- Only new games for mobile devices. No ports of existing games.
- None of this has anything to do with the QoL platform.

Is this correct?

That's the takeaway I've gotten from the news by the various articles I've read on it today. My favorite bit though is: dedicated game platform with a brand-new concept. Now this could be mean a handheld or a home console. But I'm going to go with home console for now. In which case, the constant demand of Nintendo just copying the competition and not doing something unique is still not going to happen! Looks like Nintendo still wants to keep experimenting. Ha ha ha. I figured they would.

[Adrock]

That's what I got from it. I'm also going with NX being a new home console. And I'm all for new concepts as long as they don't disrupt what has already worked.

[ThePerm]

So, Nintendo didn't quite have the money to buy the Xbox Division from Microsoft, so their teaming up with another company who has the other one third of the money needed?

[Spak-Spang]

So, Nintendo didn't quite have the money to buy the Xbox Division from Microsoft, so their teaming up with another company who has the other one third of the money needed?

Ha, that would be awesome if Nintendo bought the Xbox Division.  Can't beat them...then take out part of the competition through buy out.  Obviously, this isn't happening.

[ThePerm]

Nintendo usually doesn't do that sort of thing, so probably not, but Microsoft execs keep talking about selling the division. If I were Nintendo I would just wait till year 4 of wii u. I don't know how much it would cost for the xbox division. Some valuated the division at 4.7 billion last year. With a leveraged buyout it would be more easily possible, but again Nintendo doesn't really do that. Though there was the whole "we might have to do some mergers and acquisitions" a year back. I'm still waiting for them to buy Sega.

[Luigi Dude]

Considering the Xbone is on track to sell less then half of what the 360 sold and is continually being beaten by the PS4 in America, and even selling worse then the Wii U in Europe outside the UK, Microsoft will probably sell the division in the next 5 years.  Even though Nintendo isn't going to buy the whole thing, I could see Nintendo trying to go after Rare.  For one, I'm sure they'd like to be able to release the Donkey Kong Country games whenever they want, instead of having to make legal deals with whoever buys Xbox from Microsoft.  They could also release the Rare N64 games which were a major part of that systems library which I imagine Nintendo would like to have the ability to do in the future when finally add N64 games to the eShop.

Plus Iwata has said he regrets not trying to keep the Banjo-Kazooie series before they sold all their stock to Microsoft, so if given the chance to fix that he might make a move.

[marvel_moviefan_2012]

I can see them going after Sega just to get Sonic and then letting all the rest of their stuff stay locked away for eternity. I can't imagine a scenario where they would want the Xbox division but I can see them going after Rare and maybe whoever makes Fable.

[Ian Sane]

Has Nintendo ever bought anyone else's IP?  They have not real shortage of valuable IP.  It's more a lack of resources resulting in a lack of releases.  I'm favour of them buying devs to get more teams at their disposal but they don't need something like Sonic when they already have Mario.  I get the old Rare IPs because they seemed like Nintendo properties that they would be getting back.

What value is there for Nintendo to buy the Xbox division?  I supposed they would get a console that is doing better than their own but how long would that help?  Next gen they would probably just do the usually Nintendo wackiness and undo it all.  The Xbox brand's success (which isn't doing that well compared to last gen) is partially because the people in charge are a little more in touch with the current videogame consumer than Nintendo is.  They have decent third party support and a much more modern online setup and if Nintendo doesn't learn things themselves won't they just muck all that up once they go with the console's successor?  The most valuable part of the Xbox division would be the people who made the brand worth a damn in the first place.  Nintendo would benefit from the advice and input of those people when making decisions, particularly in regards to the Western market.  Otherwise they would just pay money for Halo, the Rare IP and a couple years of a console.