Nintendo: The mobile business is strategically important

by Ragid Hallak

Nintendo is one of the biggest publishers and developers around the world. Their Switch made great success too but it also released many games for mobile. We’ve seen various mobile titles like Super Mario Run, Mario Kart Tour, Fire Emblem Heroes, Dr. Mario World, and more. The company found its fair share of success in the market but many expected it more. In a recent Q&A with investors, the company’s president Shuntaro Furukawa said that they are not giving up on their mobile division. One of the investors asked about the thoughts on the current position of the mobile business and if it changed.

Sales from the mobile business do not account for a very large percentage of Nintendo ’s overall business

In the Q&A, Furukawa said the following:

In addition to generating revenue and profit, our basic strategy with the mobile business is to expand the number of people who have access to Nintendo IP. or example, we have broadened the fan base for Nintendo IP like Animal Crossing, Fire Emblem, and Mario Kart, and in doing so increased our points of contact with consumers. The mobile business is also strategically important for the expansion of Nintendo Accounts, which support our relationships with consumers. Sales from the mobile business do not account for a very large percentage of the company’s overall business. However, the mobile business itself is significant in that it provides a wide range of consumers a way other than Nintendo Switch to continue to enjoy playing games using Nintendo IP over a long period.

Nintendo “When global distribution of the Animal Crossing: Pocket Camp app began in the fall of 2017, for example, it introduced many female consumers and US consumers to the Animal Crossing series, and those same consumers later went on to purchase Animal Crossing: New Horizons and a Nintendo Switch console,” he explained. “And starting with Mario Kart Tour, mobile applications have proven to be a great opportunity for people to create Nintendo Accounts. In ways like these, the mobile business with its multiple objectives is contributing to the sustainable growth of the overall company’s business.”

Furthermore, Furukawa talked about the company’s relation with DeNA

“Our collaboration has two purposes,” he said. “One is to develop and operate the kind of core system necessary to provide original Nintendo games for smart devices and Nintendo Switch. Including a system for Nintendo accounts. The other is to develop mobile apps that make use of Nintendo IP and operate those services. The trust between companies and between individuals has deepened and we have built good relations in more than five years since we started these efforts. As I mentioned earlier, one of the goals of the mobile business is to create long-lasting ties with consumers via NintendoAccounts. We are establishing that through our collaboration with DeNA and will continue with those efforts.”

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