GungHo Online Entertainment's Market Cap Surpasses Nintendo's
Posted by Andy Green
Puzzle & Dragons owner sees a huge rise in its share price
The mobile gaming market is certainly on the rise as more and more people start to adopt devices such as tablets and smartphones. No longer do you need to have a dedicated gaming console to enjoy games as you can now find them within various app stores.
Naturally, the quality may not exactly be the same as the games found on the 3DS or the PlayStation Vita but the video game market is certainly shifting as more consumers opt to download software on their mobile devices.
This change in the market has been shown again recently as the market capitalisation of GungHo Online Entertainment - which is most famous for its Puzzle & Dragons title - has surpassed Nintendo's.
Following its strong earnings announcement last week, GungHo’s share price jumped nearly 29% to 1,342,000 yen ($13,579). That pushed its market capitaliszation to 1.546 trillion yen, overtaking Nintendo’s 1.539 trillion yen.
For the uninitiated, market capitalisation (often shortened to market cap) is the total value of issued shares of a publicly traded company. Essentially, if you take the share price and times it by the number of shares outstanding you'll find your magic number.
GungHo is actually bringing an RPG version of Puzzle & Dragons to the 3DS in Japan. Puzzle & Dragons Z is down for a Winter release and GungHo CEO Kazuki Morishita has said in a financial results briefing that the company hopes to shift at least one million copies, according to a Morning Star News report.
The mobile version of Puzzle & Dragons has more than 13 million registered users in Japan alone so there's every chance a paid RPG version on the 3DS could achieve such a high goal.
What are your thoughts on the rise of mobile gaming? Where do you see the future of gaming headed? Let us know in the comment section below.