Yesterday, a report from The Wall Street Journal revealed Nintendo had submitted an official request to the Chinese government to sell the Switch within the country. Part of this request was a partnership with Tencent Holdings - one of China's biggest tech and gaming companies.
In the latest update, Tencent has now been given the approval to start selling New Super Mario Bros. U Deluxe Switch bundle in mainland China. The news has resulted in Nintendo's shares surging by more than 13%. This was the highest they've been since 18th October last year.
As exciting as this sounds for fans within this region, Niko Partners Analyst Daniel Ahmad said Nintendo and Tencent would still need authorisation from other regulators and approval for individual games could take some time:
“Nintendo and Tencent will also need to submit each game for approval in China and ensure the games comply with content regulations. This too is a lengthy process and means that it will take some time before Nintendo can build up a large library of official games in China."
Nintendo teaming up with the largest video game company within China is sure to help the situation. Investors are also hoping Nintendo can eventually release its smartphone games within this market by getting Tencent to help them develop a mobile strategy.