Fans and analysts have been rampantly discussing Nintendo’s newly announced partnership with DeNA to deliver mobile apps since it was revealed by Satoru Iwata this morning. Many analysts are praising the companies’ decision to work together, saying that the two companies will be able to help each other grow.
IHS’ head of games research, Piers Harding-Rolls, says that it is important that the two companies are working together since neither of them are the leaders of their respective markets. He went on to say that “the alliance makes commercial sense on many levels,” stating that it will allow a broader audience to be aware of the Nintendo brand.
“The Nintendo-DeNA alliance is a good fit and offers up a number of important synergies for two companies that are no longer leaders in their respective segments. Not only is there significant revenue to be made directly from smartphone and tablet consumers for Nintendo, app ecosystems are also very important in reaching new customers to make them aware of the Nintendo brand and to drive a new and broader audience to its dedicated console business.
“The alliance gives Nintendo access to a large audience in its home market, which remains very important to its overall financial performance. Japanese consumers spend significantly more per capita on mobile games than in any other country and it remains the biggest market for both smartphone and handheld gaming.
“This alliance makes commercial sense on many levels – the main challenge will be knitting together the cultures of both companies and aligning the speed of development and iteration that is needed in the mobile space with Nintendo’s more patient and systematic approach to games content production. How the new games are monetised may also provide a challenge considering the general differences in models used in retail for Nintendo and through in-app purchases for DeNA.”
— Piers Harding-Rolls
The head of mobile media research at IHS, Jack Kent, also applauded the recent partnership. Kent stated that DeNA has been struggling as the market has been overtaken by companies such as GungHo, the publisher of
Puzzles and Dragons. Kent went on to say that being able to use Nintendo’s popular properties will help make DeNA relevant again.
“Despite big investments in smartphone game development and international expansion DeNA has struggled in recent years. Its initial success was based on developing mobile web games for Japanese mobile social games community, as the market has shifted towards native smartphone games it has been overtaken by domestic competitors such as Puzzles & Dragons publisher GungHo.
“There is a risk that despite the benefits each party brings it could be too late to take full advantage of their strengths. Partnering established brands has been a focus of its international strategy with titles using Star Wars, NBA and Transformers IP in different markets. Bringing Nintendo’s popular games IP to mobile for the first time represents a coup for DeNA and will help boost its domestic and international position.”
— Jack Kent
Do you agree with these opinions? Do you think that Nintendo will be able to boost their audience by exposing the mobile market to their properties?