Highlights

Good Articles to Share

Author: Tan KW   |   Latest post: Mon, 20 May 2019, 12:08 AM

 

Nintendo soars as Tencent wins Switch game approval in China

Author:   |    Publish date:


TOKYO: Nintendo Co shares jumped after China’s Tencent Holdings Ltd won approval to distribute one of the company’s games for its Switch console, a sign the Japanese company may benefit from growth in the world’s largest games market.
 
Tencent received approval for the test version of New Super Mario Bros U Deluxe for the handheld device, according to a notice on the website of China’s Guangdong provincial culture and tourism department. A Nintendo spokesman confirmed that Tencent had applied for the sale of Switch hardware, but could not comment specifically on the Guangdong approval, saying it was just one part of the entire process. Nintendo’s stock surged as much as 17%, the most on an intraday basis since September 2016.
 
Tencent could prove an invaluable ally for the Kyoto-based company in China where gamers have historically shunned consoles in favor of smartphones and PCs. The alliance could provide a jolt to growth prospects for the Switch. Nintendo in January cut its outlook for the console’s shipments, raising questions about demand for the three-year-old device.
 
“With its huge gamer population, China is like a dry sponge for Nintendo,” said Hideyuki Ishiguro, a senior strategist at Daiwa Securities Co. “We’re now starting to see a scenario for Switch sales to continue increasing and for earnings growth.”
 
Shares of other Japanese game publishers like Capcom Co, Square Enix Holdings Co, and Bandai Namco Holdings Inc also rose more than 3% after the news. All three release software for the Switch, raising prospects of sales on the mainland.
 
China is the world’s largest gaming market, but consoles accounted for less than than 2% of industry revenue in 2018, researcher Newzoo estimated last year. Microsoft Corp. and Sony Corp. have seen limited demand since releasing their newest consoles on the mainland in 2014 and 2015, as gamers have opted to play free titles on their phones instead of spending hundreds of dollars on dedicated gaming devices.
 
But the Tencent partnership may put Nintendo on different footing from its Western rivals, with the prospect of a strong distribution network and the marketing prowess of a household name with Chinese consumers.
 
Nintendo’s family-friendly series like Zelda and Pokemon may also receive a warmer reception from Beijing regulators, which have hurt PlayStation and Xbox demand by not approving more-violent blockbusters like Grand Theft Auto and Call of Duty. 
 
 - Bloomberg 
Share this

  Be the first to like this.
 


 

299  359  495  758 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 VC-PA 0.0750.00 
 LAMBO 0.07+0.005 
 LAMBO-WB 0.010.00 
 IMPIANA 0.045+0.005 
 HSI-C5G 0.16-0.025 
 EKOVEST 0.835+0.005 
 VC 0.305+0.02 
 HSI-H6G 0.305+0.07 
 PWORTH 0.07+0.005 
 EKOVEST-WB 0.345+0.005 

TOP ARTICLES

1. UNDERLOOKED BENEFICIARY OF GOVT INFRA SPENDING (ECRL, BDR MSIA, etc) !!! Bursa Master
2. Dayang: Puzzle is Clearer - Koon Yew Yin Koon Yew Yin's Blog
3. Dayang, how will its share price move next week? kcchongnz kcchongnz blog
4. TCapital Group - 冷眼 - 30年投资经验总结的18条真谛 TCapital Group ( 冷眼慢慢投资 )
5. Is paying dividend important? Sslee blog
6. Dr M can restore economy in two years, says Anwar save malaysia!!!
7. CIMB is a must short company in KLCI/aka short MYR CIMB is a must short company in KLCI/aka short MYR
8. [转贴] [COCOALAND HOLDINGS BHD:自2019年4月1日开始以含饮料包装的形式对含糖饮料制造征收40仙/升的含糖税被视为影响集团饮料业务的另一项发展] - James的股票投资James Share Investing James的股票投资James Share Investing
Partners & Brokers