Nintendo and DeNA Form Joint Venture – Gematsu

nintendo [17,282 articles]” href=”https://www.gematsu.com/platforms/nintendo”>Nintendo has announced a joint venture with mobile game company DeNA slated 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.

In an effort to further digitalize Nintendo’s business, the joint venture will research and develop, as well as create “value-added services” to further strengthen Nintendo’s relationship with consumers.

Get the full press release below.

1. The purpose of forming 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. In order to provide this experience holistically, Nintendo strives to maintain and expand its relationship with consumers primarily through the Nintendo Account.

As part of this effort, Nintendo entered into a business and capital alliance with DeNA in 2015 and has collaborated to develop and operate the new core Nintendo Account-centric system ever since.

Based on the expertise accumulated over the past seven years and the experience of co-developing multiple Nintendo Account-based services, Nintendo and DeNA will advance their partnership and establish a joint venture. In an effort to further digitalize Nintendo’s business, the joint venture will research and develop, as well as create value-added services to further strengthen Nintendo’s relationship with consumers.

2. Presentation of the joint venture (specified subsidiary)

• Last name: Nintendo Systems Co., Ltd.
• Location: Tokyo
• Title and name of representative: Deputy Director and President Tetsuya Sasaki
• Company: Research and development, as well as operations to strengthen the digitalization of Nintendo’s business, in addition to the creation of value-added services.
• Capital: 5 billion yen
• Founding date : April 3, 2023 (expected)
• Tax term: Ends in March
• Capital contribution ratio:
  • Nintendo Co., Ltd. : 80%
  • DeNA Co., Ltd. : 20%
• Relationship between Nintendo and Nintendo Systems:
  • Capital relationship: Nintendo Systems will become a subsidiary of Nintendo, which will provide 80% of the capital.
  • Personal relationship: A few Nintendo officers and employees will simultaneously be directors of Nintendo Systems.
  • Business relationship: Nintendo will entrust Nintendo Systems with the development and operation of services to strengthen the digitalization of Nintendo’s business.

(Note: The creation of this joint venture is subject to all necessary approvals, including those required by the competition laws of the countries concerned.)

3. Introducing the joint venture partner

• Last name: DeNA Co., Ltd.
• Location: 02/24/12 Shibuya, Shibuya-ku, Tokyo
• Title and name of representative: Chief Executive Officer Shingo Okamura
• Company: Gaming business, live streaming business, sports business, healthcare and medical business, new businesses and others.
• Capital: 10.397 billion yen
• Founding date : March 4, 1999
• Main shareholders and shareholding ratio (as of March 31, 2022):
  • Tomoko Namba: 16.70%
  • The Master Trust Bank of Japan, Ltd. (Trust account): 14.61%
  • Nintendo Co., Ltd. : 12.72%
  • Custody Bank of Japan, Ltd. (trust account): 5.20%
• Relationship between Nintendo and DeNA
  • Capital relationship: Cross-shareholdings
  • Personal relationship: Not applicable
  • Business relationship: Nintendo and DeNA jointly develop and operate game applications for smart devices, and Nintendo commissions DeNA to jointly develop and operate membership services for various devices.
  • Applicability to related parties: Not applicable

4. Schedule

• Date of resolution by the Board of Directors: November 8, 2022
• Date of creation of the joint venture: April 3, 2023 (expected)

(Note: The creation of this joint venture is subject to all necessary approvals, including those required by the competition laws of the countries concerned.)

5. Future prospects

The creation of this joint venture will have no effect on Nintendo’s results for this fiscal year. The effects it will have on future results will be integrated into the financial forecasts from the next mandate.