As I mentioned in my previous article, Nintendo has purchased shares in Dwango Co., which is the parent company of the Japanese mobile video content platform Nico Nico Douga. Dwango specializes in providing content through mobile phones. What does this mean, and how big of a deal is this? Hit the jump to find out!
Although Dwango is a telecommunications company, don’t count on Nintendo entering the mobile market just yet. Nintendo spokesperson Yasuhiro Minagawa stated that Nintendo does not intend to use this service to distribute games. Minagawa stated that Nintendo acquired the shares at the request of Dwango chairman Nobuo Kawakami for his personal funding needs. I feel that there is more to this though. As stated in the previous article, Nintendo has been experimenting with development of an educational tablet. With Dwango’s experience in the mobile market, perhaps Nintendo has bought into the company in order to utilize their services and resources down the line for the tablet. Perhaps Nintendo plans to utilize Dwango’s services to distribute or manage content for that. Or perhaps Nintendo won’t even utilize Dwango at all. Regardless, I believe that the timing of these two events are related, and it makes perfect sense for Nintendo to utilize their resources for developing an educational environment on a tablet.
This purchase proved to be popular with Nintendo shareholders, as Nintendo’s stock prices rose by 5.15 percent after the purchase was finalized, while Dwango shares increased by 21 percent. This comes as good news for Nintendo, as Nintendo reported a net loss of 23.3 billion yen (approximately $236 million) due to R&D and advertising for Wii U software.