CyberAgent Inc. jumped the most in over 4 years after announcing a partnership with Nintendo Co. to jointly develop smartphone games.
Shares of Tokyo-based mobile phone player rose 16 percent Earliest trading, the highest since November 2013. As part of the agreement, Nintendo will acquire a 5 percent stake in its subsidiary Cygames Inc. for an undisclosed sum, it said Statement on Friday. Nintendo's existing mobile partner DeNA Co. collapsed after the announcement by up to 5.7 percent.
The move is a shot in the arm of CyberAgent, one of Japan's most innovative and controversial mobile game developers. The company's aggressive tactics to monetize its games gave it money to expand into other areas, including online television. For Nintendo, it's another step in mobile gaming after years of lagging behind the rest of the segment. CyberAgent's shares rose 1
"Cygames is more international, more profitable, and focuses exclusively on game development as DeNA," said Serkan Toto, founder of Tokyo gaming consultancy Kantan Games Inc.
This summer, Nintendo will release a new role-playing game called Dragalia Lost, the was developed together with Cygames. The game will initially be available in Japan, Taiwan, Hong Kong and Macau. The new partnership was not included in CyberAgent's earnings projections, the company said. CyberAgent announced Thursday that exceeded analyst estimates.
Nintendo's outgoing President Tatsumi Kimishima has hinted that the three-year partnership with DeNA has not delivered as much as the company expected. They have jointly released three games – Super Mario Run, Fire Emblem Heroes and Animal Crossing: Pocket Camp – with mixed results.
"I had previously expected that smartphone games will become one of our stores pillars, but that's still a problem," said Kimishima at a news conference on Thursday, after reporting the revenue. Nintendo's shares rose 2 percent after earnings estimates and a new president, Shuntaro Furukawa.