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Nintendo forms joint venture company with Dena in pursuit of "digitalization"

The new company is called Nintendo Systems and will be based in Tokyo.

Nintendo has formed a joint venture company with Japanese mobile developer Dena to further digitalize its business.

The joint venture company will be called Nintendo Systems and according to a press release will focus on research and development while also seeking to "strengthen the digitalization of Nintendo’s business, in addition to the creation of value-added services."

"With the integrated hardware-software model at the core of its business, Nintendo also strives to provide enhanced experience and service outside of its dedicated gaming system," added Nintendo. "In order to provide this experience in a holistic manner, Nintendo is working to maintain and expand its relationship with consumers primarily through Nintendo Account"

Nintendo Systems will be based in Tokyo and will officially be formed on April 3, 2023. Nintendo will contribute 80 percent of the capital towards the joint venture, with Dena throwing in the remaining 20 percent. As a result, Nintendo Systems will become a subsidiary of Nintendo.

Nintendo and Dena have been working together since 2015 to develop and operate smartphone games and experiences, including the defunct StreetPass-like messaging app Miitomo and Super Mario Run.

The Japanese console maker said that, after working with Dena for the past seven years, now is the right time to advance its partnership with the company. Nintendo also confirmed that the formation of the joint venture will have no effect on its results for the fiscal year.

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