Nintendo’s stock rose by four percent in October after the company announced they would be investing in the Niantic mobile gaming company to develop the augmented reality game “Pokemon Go.”      

 

Augmented reality Pokemon Go game

(Gamer’s Sphere)

It came as a surprise to many when the company started shifting their focus to mobile phone games, especially since they already develop their own handheld gaming systems, like the Nintendo 3DS. This decision came soon after Nintendo appointed their new president, Tatsumi Kimishima, in September following the death of former President Satoru Iwata. Kimishima was the CFO of The Pokemon Company back in 2000, which may explain the investment so soon after his new title was made official.       

 

“The shares are going up because of the announcement of the investment. It shows that Nintendo is making a strong effort to develop smartphone games,” said Iwai Cosmo Securities’ analyst, Tomoaki Kawasaki.

 

Nintendo CEO

Nintendo’s new CEO, Tatsumi Kimishima (segmentnext.com)

Niantic isn’t the only mobile gaming company in which Nintendo made the decision to invest. Nintendo has teamed up with the video game developer DeNA for the production of multiple mobile games. While there hasn’t been any information released on any of these games, an announcement with details on DeNA’s upcoming titles is expected to be made before 2016.   

 

Nintendo’s stock took a big dip in 2012 after the release of the Wii U didn’t sell as well as many expected. It became difficult for the company to compete with Sony’s PlayStation 4 and Microsoft’s Xbox One, which may have contributed to Nintendo’s shakey stock value over the next couple of years.

 

After Nintendo announced their partnership with mobile gaming companies, their stock drastically increased to prices that haven’t been seen since before the release of the Wii U. By taking Nintendo in a different direction by shifting to mobile games, they have found a way to help take focus off of the console war, and redirect attention to their new mobile image.           

 

Is focusing on mobile gaming going to continue to help Nintendo grow? If “Pokemon Go” is a success, should Nintendo make an even bigger shift to mobile games? Leave a comment or talk to me on Twitter @Karbowski_Devon.