Nintendo and DeNA form joint venture company – Gematsu

Nintendo [17,282 articles]” href=”https://www.gematsu.com/platforms/nintendo”>Nintendo has announced the formation of a joint venture company with mobile games company DeNA, scheduled for April 3, 2023.

DeNA has co-developed and manages the service infrastructure and Nintendo Account integration for several Nintendo titles available on iOS and Android devices, including Super Mario run, Fire Emblem Heroes, Animal Crossing: Pocket Campand Mario Kart Tour.

Aiming at strengthening the digitization of Nintendo’s business, the joint venture company will research and develop and create “value-added services” to further strengthen Nintendo’s relationship with consumers.

Get the full press release below.

1. The goal of establishing a joint venture

With the integrated hardware-software model at the core of its business, Nintendo also strives to provide an enhanced experience and service outside of its dedicated gaming system. To provide this experience in a holistic way, Nintendo is working to maintain and grow its relationship with consumers primarily through the Nintendo Account.

As part of this effort, Nintendo formed a business and capital alliance with DeNA in 2015 and has since worked to develop and operate the new core system around the Nintendo Account.

Based on more than seven years of expertise and experience in co-developing multiple services based on the Nintendo Account, Nintendo and DeNA will advance their partnership and establish a joint venture company. Aiming at strengthening the digitization of Nintendo’s business, the joint venture company will research and develop and create value-added services to further strengthen Nintendo’s relationship with consumers.

2. Overview of Joint Venture Company (Specified Subsidiary)

• Surname: Nintendo Systems Co.,Ltd.
• Location: Tokyo
• Title and name of representative: Representative Director and President Tetsuya Sasaki
• Business: Research and development and operation to strengthen the digitization of Nintendo’s business, in addition to creating value-added services.
• Capital city: 5 billion yen
• Founding date: April 3, 2023 (planned)
• Financial year: Ends in March
• Capital Contribution Ratio:
  • Nintendo Co., Ltd.: 80%
  • DeNA Co., Ltd.: 20%
• Relationship between Nintendo and Nintendo Systems:
  • capital relation: Nintendo Systems will become a subsidiary of Nintendo, which will contribute 80% of the capital.
  • Personal relationship: Certain Nintendo officers and employees will also serve as directors of Nintendo Systems.
  • Business relationship: Nintendo will entrust Nintendo Systems with the development and operation of services to strengthen the digitization of Nintendo’s business.

(Note: The formation of this joint venture company is subject to all necessary permits, including those required under the competition laws of the countries involved.)

3. Overview of joint venture partners

• Surname: DeNA Co.,Ltd.
• Location: 02/24/12 Shibuya, Shibuya-ku, Tokyo
• Title and name of representative: President and CEO Shingo Okamura
• Business: Game Store, Live Streaming Store, Sports Store, Health & Medical Store, New Businesses and others.
• Capital city: 10.397 billion yen
• Founding date: March 4, 1999
• Major shareholders and ownership percentage (as of March 31, 2022):
  • Tomoko Namba: 16.70%
  • The Master Trust Bank of Japan, Ltd. (Escrow): 14.61%
  • Nintendo Co., Ltd.: 12.72%
  • Custodian of Japan, Ltd. (Escrow): 5.20%
• Relationship between Nintendo and DeNA
  • capital relation: cross shareholdings
  • Personal relationship: Not applicable
  • Business relationship: Nintendo and DeNA jointly develop and operate game apps for smart devices, and Nintendo entrusts DeNA with the joint development and operation of membership services for various devices.
  • Applicability to related parties: Not applicable

4. Schedule

• Date of decision by the Board of Directors: November 8, 2022
• Date of establishment of the joint venture company: April 3, 2023 (planned)

(Note: The formation of this joint venture company is subject to all necessary permits, including those required under the competition laws of the countries involved.)

5. Future Outlook

The formation of this joint venture company will have no impact on Nintendo’s results for this fiscal year. The impact on future results will be reflected in the financial projections from the next term.