Moriyasu:
DeNA’s expertise lies in, for example, the infrastructure technology that can handle massive amount of traffic. We are also able to manage live operation by analyzing user activities and quickly reflecting the insight to improve our service. We have extensive expertise in developing mobile services that are optimized for small screens and short, in-between time usage. I believe this alliance came together because Nintendo recognized these strengths and capabilities of DeNA.
Moriyasu:
Since we launched our mobile game platform in 2006, DeNA has owed much of its growth to mobile gaming, which is currently our core business. In the past couple of years in Japan, we have tried to adapt ourselves to the rapid market shift from feature phones to smartphones as well as browsers to native apps. I admit it took longer than we initially expected.
Moriyasu:
But we created a native app hit last year, and we are certainly gaining strong momentum in the app market.
Moriyasu:
However, the competition in the mobile game app space has been intensifying. All kinds of new titles are launched every day even though the number of mobile games a user can play in a day is quite limited. It’s becoming increasingly difficult to get games noticed. This is happening globally.
Moriyasu:
In order to get consumers to notice a game and actually take time to play it, a compelling differentiator is needed. The most apparent of all differentiators is, I believe, intellectual property, or IP.
Moriyasu:
Nintendo probably has the most beloved game IP globally. At DeNA that’s our understanding, and I’m sure many of you see it the same way.
Moriyasu:
I believe teaming up with Nintendo is the best possible strategy to achieve growth in DeNA’s core business of mobile gaming.
Moriyasu:
As Iwata-san mentioned earlier, it was June 2010 when we first met. We met several times after that, and last summer we began specifically envisioning the idea for our alliance. We had numerous meetings where I myself talked to many Nintendo members in person. The more we talked, the stronger I believed each company’s strengths could complement one other. I started to wonder how huge of an impact we would make globally as one team.
Moriyasu:
Some may think the two companies’ corporate cultures don’t really match, but it’s rather the opposite. We have been able to advance the alliance project with compassion and mutual respect for the other company’s strengths. By forming a joint team consisting of Nintendo and DeNA members, I firmly believe we will be able to create major synergies and deliver compelling products with new value to our customers.
Moriyasu:
Our new business alliance, as Iwata-san discussed earlier, consists of two parts. One is to jointly develop and operate gaming apps that use Nintendo IP, for smart devices. The other is to build together Nintendo’s new online membership service.