Nintendo has recently began to expand its relationship with software developers in hopes of strengthening its presence in the "fast growing mobile market". Before Nintendo sought to expand its relationship with developers, the company had only one relationship with a software development co, DeNa Co., in which Nintendo owned a 10% stake. The two companies agreed to develop and release 5 smartphone apps in 2 years time. Although Nintendo is seeking new relationships with developers in hopes of raising the pace for the release of its smartphone apps, they are not seeking to acquire a stake in any company as was the case with DeNa Co. aforementioned earlier. Nintendo is breaking away from a long held company belief in releasing games on their own platforms exclusively in an effort to gain traction with beginner and introductory gamers. The global market for smartphone apps grew 40% in 2016 in large part thanks to China and Japan where Nintendo is based. Despite this, Nintendo has failed to release in smartphone games with DeNa Co. in China but the company hopes to change this and expand into the Chinese Mobile Market by seeking these new relationships with Developers.
Nintendo's new goal of establishing multiple relationships with software developers will give the company greater brand presence in the fast growing and competitive mobile market. With revenues falling for the company in recent years, this strategy aims to increase its visibility in what many view as the future gaming market as well as adjusting its positioning so to attract people other than regular gamers. Nintendo outlines its goals in the Nintendo Alliance which also increases visibility and brand loyalty.
By: Aaron Mandell
https://www.wsj.com/articles/nintendo-looks-for-help-to-raise-its-smartphone-game-1513092568
In my mind, I am having trouble deciding if Nintendo should pursue this route with smartphone apps. I own a Nintendo Switch, a fully portable device that is spectacular in my opinion and has many advantages over the PS4 and Xbox. I know that they've had a couple smartphone app games out in the form of Mario and Pokémon but they were a "flavor of the week" kind of games for me and I did not play them for long. Interesting to see how this plays out.
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