Nintendo has announced today that it is acquiring distribution company JESNET in a deal worth $47 million.
JESNET will become a Nintendo subsidiary next April, and the firm will work closely with video game wholesale firm AJIOKA to assist in bringing Nintendo's products to market.
Here's a section from the official PR:
As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience.
At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.
This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with JESNET's and AJIOKA's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.
While it might not seem like the most interesting bit of business on paper, it means that Nintendo will effectively control every element of the game production process - from conception to development and ultimately distribution to its customers.
[source nintendo.co.jp, via twitter.com]
Comments 33
Is this mainly going to affect the Japanese market though? Or will that also carry over to US/EU?
@mid_55 The acquisition of Monolith Soft from Bandai Namco was initially going to be a Japanese exclusive venture, however, due to popular demand by fans, Monolith Soft proved to be a more valuable asset that initially expected.
In the meantime, Nintendo should acquire Intelligent Systems as a subsidiary. I'm so surprised that hasn't happened yet...
Would this affect sony and Microsoft? or did those two companies only distribute products for Nintendo?
" On my card it says I am CEO of Nintendo, in my head I am a business man but in my heart I am an accountant. "
@123akis No. I think they mainly deal with Nintendo.
@mid_55 This is only really relevant to Japan, but who knows - Nintendo could carry over this strategy to other regions as well.
Seems like a commitment to do physical media long term.
Saves them money long term. No need to negotiate costly distribution deals (i assume they can get pricey).They set the rules and such at least in japan.
Interesting to see some strategy being put into effect at Nintendo.
Don't mess with an account
It's a potentially good use of the cash from the Mariners sale for the Japan business and might allow them to create additional leverage elsewhere.
If they're going to add any new subsidiaries I'd like to see them add Level-5 or Platinum Games.
German Nintendo online team have just released a teaser pic saying there will be some kind of MK8 announcement tomorrow.... interesting!
MK8 Amiibo? DLC?!
Interesting, I wonder how big of an impact this will have on Nintendo worldwide. And it's being implemented next April, a month after the rumored NX launch....hmmmm
"Nintendo is committed to bringing smiles..." No, they aren't. The have an awful relationship with fans. This statement is a joke.
@LegendOfPokemon
Some of us beg to differ.
They must've done that so that another amiibo shortage wouldn't happen...
Guess that Pokemon Go profit (Which I know, goes 3 ways) came in handy...
@jmbarnes101 Platinum Games okay, but Level-5 would be awful as Nintendo has a tendency to keep titles with distinct Japanese flavour Japanese only, it could mean an end to many amazing series in the west, plus it would force the removal of PS2 Classics such as Dark Cloud 1 & 2, and Rogue Galaxy which are some of the best classic JRPG's on the Playstation Store...
@Rukiafan7
Like what? Tokyo Mirage Sessions? And aren't they publishing Yo-kai Watch in the West?
@mid_55 Is this a joke?
@AlphaJaguar I thought Intelligent Systems was a 2nd party of Nintendo...? I've only seen them make games for Nintendo systems anyway...?
@Rukiafan7 You say that as if Nintendo cares about Sony.
@Rukiafan7 Er, what? They published some of Level 5's titles in the west...
@PleaseUnderstan While Nintendo could indeed be willing to commit to physical media for the foreseeable future, the article really only mentions Nintendo's gaming systems, not the software: '... selling mainly video game systems through their nation-wide distribution network'.
That date of 17th April. . . .Why 17th April? Surely they would want this distribution company in place in time to handle THE NX RELEASE ?
@Lzeon Some, not all and you have to admit that without Operation Rainfall Xenoblade Chronicles and it's sequel likely would have never been released in NA. It's just that Nintendo isn't willing to take any risks which is why we get yearly Mario games while most of their other series collect dust...not exactly a company you want to acquire a bunch of fantastic developers.
I'll always have fond memories of Nintendo, but I feel too burned by their recent behaviour to defend most of their decisions anymore. It's gotten to the point where the Wii U is likely my final Nintendo console, though I'll still probably get Nintendo's next handheld at some point.
@Rukiafan7
First, everyone says that as if it's true, but we don't know if without Operation Rainfall the games wouldn't have come over.
Second, there's hardly anything as of late that doesn't get released outside of Japan. They even publish games like Bravely Default, taking the risks for the companies who actually develop the games!
Making stuff up to make a point is like making no point at all.
@GrailUK Tatsumi Kimishima... the Bob Iger of Nintendo.
@LegendOfPokemon Dude, if you're so bitter about Nintendo, why are you on this website? It's encouraged to speak out on bad corporal practice but you're treating Nintendo like they're Konami.
@AlphaJaguar I think you are right. I know their release schedule has been two steps away from 'closed due to refurbishing' but the company is making so many positive noises. To me they are looking at expanding and growing (something I think their old model may have inhibited) and with all due respect, I think Kimishima is going to do great.
@mid_55 Source?
@AlphaJaguar I really like a lot of Nintendo's games, which is why I own Nintendo systems and am on this website, but often they make decisions that I don't support (such as taking down AM2R or mishandling the Virtual Console so we can't play said games, for example).
@Igetin Same here until I looked the company up on Wikipedia. What's even more perplexing is that they've been producing exclusively for Nintendo ever since their inception.
@Rukiafan7 An odd statement considering they've been risky lately. See: Bayonetta.
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