Nintendo Co. has partnered up with DeNA Co Ltd to produce mobile games. The move is puts Nintendo on a collision course with Apple Inc. (NASDAQ:AAPL) due to Apple’s rights to offer mobile games on a monetary basis.
The news of this corporate partnership has sparked interests in the gaming and the corporate corner as evident by the rapid response, leading to a 27 percent jump in Nintendo’s share value after the announcement.
Even after the announcement, Nintendo is still exhibiting wariness while venturing into mobile gaming. It is possible that the excessive caution might interfere with the ability of Nintendo to realize its untapped potential.
With relation to Nintendo’s half-heartedness, a few issues already raised. The first is about the degree to which they can regulate the quality of their games in the mobile gaming space. It is clear from the company’s performance and market acceptance that Nintendo makes exceptional quality video games. Unfortunately, it remains unknown how appropriate such an approach will be within the free-to-play space for the mobile gaming market.
Nintendo maintains its intention to continue developing its tittles as well as deciding the best strategy for distribution of the free franchises that the company creates. That could be a reason for concern. Though it is splendid, Nintendo has dedicated itself to a no direct ports policy in favor of mobile ready titles. The company needs to put in a lot of effort in adapting the space where monetization technicalities matter as much as performance value. Convenience and monetization could be problematic for Nintendo especially with previous successful titles being offered for free.
Nintendo’s controlled approach is more likely to limit the company’s chances of making a mark on mobile games market. The implications of this move dictate that Nintendo abandon its distribution chains and strategies for the new titles. By adapting exclusively to DeNA’s platform as the only way to get Nintendo titles on mobile, Windows PC and on their home devices, Nintendo will cease using Apple’s App Store and Android’s Google Play markets. This might mean that there are no plans to release tittles on the online markets.
The agreement by Nintendo and DeNA to distribute mobile games on a separate distribution platform reveals a head to head competition with Apple Inc. (NASDAQ:AAPL) because both Apple stores ban apps that permit people to pay for stuff without directing through the stores to facilitate them to get a cut.