NTDOY - Nintendo establishes JV with DeNA to 'strengthen the digitalization' of its business

In conjunction with its first-half earnings report, Nintendo ( OTCPK:NTDOY ) said on Tuesday that it had established a joint venture with one of its mobile gaming partners, DeNA, in an effort to "strengthen the digitalization" of the Japanese gaming giant's business.

The joint venture, known as Nintendo Systems Co., Ltd, is slated to open in April 2023, with Nintendo ( OTCPK:NTDOY ) owning 80% and DeNA owning the remaining 20%.

Currently, Nintendo ( OTCPK:NTDOY ) and DeNA have a partnership that has brought mobile games to iOS and Android devices such as Super Mario Run , Fire Emblem Heroes and Mario Kart Tour , among others.

Nintendo ( OTCPK:NTDOY ) has also partnered with other companies for mobile games, including Niantic for Pokemon Go .

Separately on Tuesday, Nintendo ( OTCPK:NTDOY ) announced that its net profit for the first half of its fiscal year was $1.6B, with $4.5B in revenue.

The company said Nintendo Switch sales fell 19% from the previous year to 6.68M units and lowered its expectations for Switch consoles sold in the fiscal year to 19M, down from 21M, largely due to the ongoing semiconductor shortage.

So far, Nintendo ( OTCPK:NTDOY ) has sold 114M Switch machines around the world.

Nintendo ( OTCPK:NTDOY ) shares fell nearly 4.3% to $10 in early Tuesday trading.

Late last month, research firm NPD Group reported videogame sales fell for an 11th straight month in September, but Nintendo's Switch ( OTCPK:NTDOY ) was second-best in unit sales, behind Sony's PlayStation 5 .

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