Nintendo shares were up as much as 29% Tuesday following an announcement from the company that it would start making games for mobile devices.
Until now, Nintendo has refused to bring its games to platforms outside its own consoles. On Tuesday, it announced a partnership with a Japanese mobile gaming company called DeNA to start developing new smartphone and tablet games featuring Nintendo characters.
Nintendo and DeNA also invested $181 million in each other, giving Nintendo a 10% stake in DeNA and DeNA about a 1% stake in Nintendo, according to Reuters.
This plays to Nintendo's biggest strength: Its library of iconic characters and games. Nintendo released a new video game console called the Wii U in 2012, but its sales have already been eclipsed by the Xbox One and PlayStation 4. Nintendo also makes a handheld console, the 3DS.
Mobile gaming is a hot, profitbale space to get into. Games like "Clash of Clans," "Game of War," and "Candy Crush" practically mint money by offering in-app purchases for virtual items. Couple that model with Nintendo's library of classic franchises, and you likely have a formula for success.
Besides new games designed specifically for mobile devices, Nintendo has an opportunity to bring classic titles too. Gaming companies like Sega and Capcom have already seen success porting older games to smartphones and tablets.
Nintendo also teased on Tuesday that it's already developing its next video game console, which is codenamed "NX." The company didn't give any details on the new console other than it's "a dedicated game platform with a brand-new concept," according to Engadget.
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