News Article

Nintendo Stock Value Rises After Buying Stake In Mobile Web Company Dwango

Posted by Liam Doolan

Embracing the mobile market

Mobile gaming is something Nintendo reportedly has no plans of participating in anytime soon. President Satoru Iwata previously made it clear Nintendo would lose its identity if it were to make such a move. On other occasions, he has said this field of games and software development is under absolutely no consideration.

Despite this, fans continue to witness subtle movements with development of applications such as Pokédex for iOS and Miiverse availability on mobiles, tablets and computers. Now, Nintendo may have just inched a step closer to mobile games development. It is not exactly a clear indicator, but it is no doubt significant enough to pique curiosity amongst the video game world.

Bloomberg reports the stock value of the house of Mario has jumped to its highest since August after purchasing a stake in Dwango Co. — a company that provides content through mobile phones.

According to a statement filed with the Tokyo Stock Exchange, Nintendo stock rose by as much as 5.2 percent to 13,070 yen as of 11:30am today. Dwango shares have now also surged by 21 percent, after Nintendo purchased exactly 612,200 shares in the company.

Nintendo spokesman Yasuhiro Minagawa said Nintendo has no plans to distribute games through Dwango’s video delivery system Niconico. He also explained shares were acquired by Nintendo at the request of Dwango Chairman Nobuo Kawakami for personal funding reasons.

Let us know what you think about this latest development, and if it is any indication Nintendo will enter the mobile market in the near future.

[via bloomberg.com]

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User Comments (34)

EaZy_T

#1

EaZy_T said:

hmm, maybe a way to push Nintendo products via the mobile platform?

edit for clarity: I mean advertising and promotions, not gaming.

erv

#2

erv said:

I don't get why people think this is about mobile game development? A dog and his kitty would understand that brand dilution is no way to help the business.

It's a company that holds a very popular subsidiary for sharing online video in japan. Just saying...

StarDust4Ever

#3

StarDust4Ever said:

Stock holders can get bent. Nintendo knows that publishing to mobile platform would spell short term gains (which stockholders want) but spell doom for the future of Nintendo as a console manufacturer. Don't pull a Sega. Nintendoes what Segain't.

yenly

#4

yenly said:

I think it might just be to use some of their assets into gaming that is it because if nintendo goes into mobile gaming then consoles are over with.

Morph

#5

Morph said:

Companion aps for games could be the way to go, mobile eshop, miiverse, a nintendo zone type app with videos and such, theres tons of things nintendo could do on mobile that wouldnt dillute the brand

readyletsgo

#6

readyletsgo said:

'He also explained shares were acquired by Nintendo at the request of Dwango Chairman Nobuo Kawakami for personal funding reasons.'

I'm guessing Dwango is a friend of the company and may be in some serious financial trouble. Wouldn't look into this too much guys.

Ony

#7

Ony said:

It has to be only apps and supports things like said Miiverse and Pokédex.
Never games.

Never.

KeeperBvK

#8

KeeperBvK said:

Dwango is the company behind NicoNico? Then calling it a company "that provides content through mobile phones" doesn't seem appropriate. NicoNico Douga basically is Japan's Youtube.

cfgk24

#9

cfgk24 said:

That's more honest than in the Uk - Here, when the Director needs a new yacht or House, he just pays himself an enormous salary ( £millions) at the expense of his customers and employees and then the company has no money left in the bank to pay it's debts ( because he's taken the lot) so he declares the Company Bankrupt and just starts a new one the next day Personally richer than before!

readyletsgo

#10

readyletsgo said:

'He also explained shares were acquired by Nintendo at the request of Dwango Chairman Nobuo Kawakami for personal funding reasons.'

I'm guessing Dwango is a friend of the company and may be in some serious financial trouble. Wouldn't look into this too much guys.

Volmun

#12

Volmun said:

@erv "It's a company that holds a very popular subsidiary for sharing online video" naw that makes me curios wether its prep for the Miiverce Video shering thay have mentiond in the past. Maybe?

Artwark

#13

Artwark said:

Why on earth would Nintendo make games for phones when it already has a handheld that has LOTS OF GAMES?!?!?

SanderEvers

#14

SanderEvers said:

@Nintenjoe64 Actualy this is likely to happen someday. Especially IF Nintendo merges their console with the handheld. (Wii U is only the first step)

This new console/handheld hybrid might also be a phone, or that would be a secondary device that can connect to it.

electrolite77

#15

electrolite77 said:

Could be Nintendo are looking at using mobiles as a Smartglass (but working) (and good) second screen option for a future console. Would provide them with a method of integrating good ideas for second screen use (if they have any) or maps, options, inventories on a second screen but without adding cost to Nintendo's hardware. The Gamepad has to be a significant problem when it comes to dropping the Wii U's price

Kifa

#18

Kifa said:

Nintendo and smartphone/tablet market? No, no, NO! As @erv already said, it's probably something about online videos, not mobile games. As for using a tablet for second screen - give me physical buttons and then we'll talk. I personally consider touch controls horrible and suitable only for very specific and simple tasks...

D3athBr1ng3r187

#19

D3athBr1ng3r187 said:

Oh........no and it begins like I just stated on here last week about Nintendo going to team up with Mobile companies eternal sadness......- _ -

Kawaiipikachu

#21

Kawaiipikachu said:

Hopefully that means that we might get to see the Nico Nico Douga app released within the west.
Watching all my favorite Vocaloid vids on my TV is awesome.

MadAdam81

#22

MadAdam81 said:

It's about diversifying their income, and maybe getting more promotion for their products online in Japan.

bigtig

#23

bigtig said:

miiverse app club nintendo app merge club nintendo and miiverse and nnid add achievements... GO!

rjejr

#25

rjejr said:

@readyletsgo - Basically what this guy said. Twice for some reason. Rich guys helping out other rich guys. Why get a loan from a bank and pay interest when you can just have a rich buddy buy your stock, have your stock price go up, and you collect on your bonus. Call it "outsider" trading.

Though if it's like youtube, then finding a new way to disperse Nintendo Directs would be helpful.

BTW, video <> games.

XCWarrior

#26

XCWarrior said:

Not a good sign for Dwango Co. We read every day that Nintendo is DOOMED. So if they are buying stock in your company, you must be DOOMED too!

I wouldn't put much stuck into it - pun intended. If you want to make money, you need to invest in things. If they think that company is a good investment, then you buy stocks in it.

People are reading WAY too much into this.

JudgeMethos

#27

JudgeMethos said:

Seems they're gonna use the mobile platform to really promote their games? Millions of people will be subjected to Nintendo-isms? Smart plan. I likey :-) Now the promotions will really begin.

Blue_Yoshi

#28

Blue_Yoshi said:

Clearly there planning on something with the mobile market, whether it be Apps or even Games to possibly there own phone. Ya see what a lot of people seemed to miss during Nintendo Direct was that when Nintendo talked about their ID system they said 3DS, Wii U, AND OTHER PRODUCTS but what other products could they have been talking about? Wii U is a console, 3DS is handheld so there must be something going on with the mobile market and them.

Sceptic

#31

Sceptic said:

@readyletsgo: Good gosh, yeah. What is up with that?

"Nintendo acquired the shares at the request of Dwango Chairman Nobuo Kawakami for his personal funding needs, said Minagawa."

That has got to be the wirdest thing yet from Nintendo. They bought shares in a company because the chairman needed money?

And then the market thinks it means they're going into mobile and their stock rises, lol.

ECMIM

#32

ECMIM said:

First step for Nintendo to start getting Really Serious(TM) about online, on both their 3DS successor and/or the U.

unrandomsam

#33

unrandomsam said:

Nintendo said they would never do anything other than games. (Then they did Miiverse). Wonder whether if they did go into mobile whether there would be another wholesale shift in opinion to whatever they do being the best thing to do. (There is some NES games the only way I would ever buy them is on mobile).

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