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Nintendo News: Stock Continues to Climb for Developer

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The Nintendo booth during the E3 2011 [By The Conmunity – Pop Culture Geek from Los Angeles, CA, USA [CC BY 2.0], via Wikimedia Commons]

News about Nintendo recently has been one of a renaissance of sorts.

Nintendo is not doing good as it appears. Despite the sales of their video game consoles such as the Nintendo new 3DS and the Nintendo Wii U, the developer appears to be not out of the woods in terms of sales. The cause of this appears to be the ever changing face of technology nowadays, Nintendo?s mobile gaming branch, one market?where they used to dominate, is facing stiff competition from game developers for?mobile phones and tablets. Whereas you have to pay for the games on the 3DS, for starters, mobile games usually costs little to none.

We take a look at these articles from Business Insider and Wall Street about the fate of Nintendo. Nintendo has been doing pretty good these days, following the old adage of ?if you can?t beat ?em, join ?em.? It certainly seemed to work, according to the?Business Insider report. Nintendo managed to make it through and post record numbers of sales. Also, in the?Wall Street article, Nintendo found a way to do it with the help of DeNA?a company which started in the 2000s who had a great sense as?the future of gaming.

Before DeNA intervened

Before DeNA came into Nintendo, there was trouble ahead for the game developer.

With the 3DS and the Wii U, Nintendo was willing to stake their fortunes on outdated tactics. The company wasn?t willing to dip their fingers into the more profitable mobile gaming market. As reported by the?Business Insider, DeNA approached the problem with a feasible tactic, because Nintendo finally gave in and gave DeNA the nod. That improved the gaming company’s chances, as their value continues to skyrocket in the stock market.

DeNA entering the picture allowed?Nintendo ?to through a renaissance that jump started the company?and had it kicking once again in the already crowded gaming market.

What DeNA is

With all this business Nintendo has with DeNA, we take a look at the game developer.

DeNA was initially not a gaming developer; it was an online auction platform, according to?Wall Street Journal?s Blog. In an effort to turn its fortunes around, perhaps, they quickly started to provide free-to-play games on feature phones.?This signaled their successful foray into the mobile gaming niche. DeNA?s recent partnership with Nintendo was also seen as the saving grace for the company.

If this is true, then the effect seems to be that both Nintendo and DeNA is profiting off each other?thus making this an effective symbiotic partnership.

DeNA and Nintendo working out a Partnership

DeNA has made an investment in Nintendo and Nintendo did the same. It seems to have worked out fine for them, what with their stocks, as per Wall Street Journal, going limit-up during that specific Wednesday morning trading. Will this trend continue as Nintendo and DeNA continues this partnership?

 

Photo Credits: Wikimedia Commons

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