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Nintendo Just Bought This Company, Here's What We Know
Nintendo today announced that it will pay $46.5 million to acquire 70 percent of Japanese distributor Jesnet, which will become a Nintendo subsidiary as part of the deal.
In a statement announcing the deal, Nintendo said it's buying a controlling interest in Jesnet to help in its continued effort to "[bring] smiles to people across the world through products and services." Also as part of the move, Jesnet will work with Japanese video game wholesale company Ajioka.
"To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience," the statement continued. "At the same time, Jesnet and Ajioka have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network."
"This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with Jesnet's and Ajioka's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion."
With Jesnet becoming a subsidiary (expected to become official in April at the start of Nintendo's new fiscal year), Nintendo will have an "integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service."
Overall, Nintendo said it expects the acquisition to "strengthen the overall competitiveness of the Nintendo group and increase its corporate value."
As the statement mentions, Jesnet had been a partner with Nintendo for a long time before this deal, distributing physical products in the island nation.
Whether or not this deal has any effect on markets outside of Japan remains to be seen. You can read Nintendo's full statement on the matter here [PDF].
The announcement comes less than a year before Nintendo plans to release its next console, which is codenamed NX, in March 2017. Nintendo has yet to formally reveal the system, but that is expected to happen relatively soon, given its release is only seven months away.
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In a statement announcing the deal, Nintendo said it's buying a controlling interest in Jesnet to help in its continued effort to "[bring] smiles to people across the world through products and services." Also as part of the move, Jesnet will work with Japanese video game wholesale company Ajioka.
"To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience," the statement continued. "At the same time, Jesnet and Ajioka have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.""This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with Jesnet's and Ajioka's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion."
With Jesnet becoming a subsidiary (expected to become official in April at the start of Nintendo's new fiscal year), Nintendo will have an "integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service."
Overall, Nintendo said it expects the acquisition to "strengthen the overall competitiveness of the Nintendo group and increase its corporate value."
As the statement mentions, Jesnet had been a partner with Nintendo for a long time before this deal, distributing physical products in the island nation.
Whether or not this deal has any effect on markets outside of Japan remains to be seen. You can read Nintendo's full statement on the matter here [PDF].
The announcement comes less than a year before Nintendo plans to release its next console, which is codenamed NX, in March 2017. Nintendo has yet to formally reveal the system, but that is expected to happen relatively soon, given its release is only seven months away.
More...