Nintendo Stock Skyrockets After Mobile Games Announcement
Nintendo’s stock has seen steep escalation, climbing to 25.5% at the close of Wednesday. The boost comes after Nintendo’s decision to make games for smartphones and tablets.
Nintendo had been quite firm about not creating games for platforms other than its own consoles up until now. But the recent announcement of partnering with Japanese mobile gaming company, DeNA, known for various Wii and DS console titles like Diddy Kong Racing and The Legend of Zelda, will see the advent of games for smartphones and tablets featuring Nintendo characters.
Mario and Luigi, plumbers from the popular Super Mario games, will also find their way on smartphones by the end of this year.
CNBC reported that stocks upped by its 21 percent limit, the daily limit set by the Tokyo Stock Exchange, to 17,080 yen ($140.83) on Wednesday.
Forbes quoted Nintendo, saying, “Nintendo expects to benefit from new business opportunities as more consumers encounter Nintendo IP, and DeNA expects to strengthen its core business of mobile gaming internationally through the use of Nintendo IP.”
Erik Kain, Forbes gaming contributor, reported Nintendo President Satoru Iwata saying, “This will allow us to build a bridge between smart devices and gaming consoles. It doesn’t mean smart devices will eat away at gaming consoles, it will create an entirely new type of demand.”
Although prospects of Nintendo teaming up with DeNA look bright, the announcement of NX – the newest video game console – indicates Nintendo’s commitment to keep creating games for its own platform, Business Insider said.
Despite Tuesday’s upsurge and a 52-week high, the ADR is 70% less than what it was on October 2007 when it was still $77 a share. Similarly, Zynga, creators of FarmVille and Words with Friends, and Kind Digital, known for the massively successful Candy Crush, have slumped 20% from their initial public offerings.