- Nintendo is buying a 5-percent stake in Cygames
- Cygames is best known for Granblue Fantasy
- Dragalia Lost is a action role-playing game
Japanese video game maker Nintendo said on Friday it has teamed up with Tokyo-based online games developer Cygames, aiming to step up the mobile gaming business and reduce reliance on volatile console sales.
The Kyoto-based company will buy a 5 percent stake in unlisted Cygames, known for its blockbuster Granblue Fantasy game, for an undisclosed amount.
As part of the tie-up, Nintendo will release a jointly developed action role-playing game called Dragalia Lost for smartphones this summer, Nintendo said.
The game will be launched in Japan, Taiwan, Hong Kong and Macau at first, and later in North America and Europe.
Nintendo entered mobile gaming under partnership with online gaming firm DeNA Co in 2015 as part of an effort to stabilise earnings highly dependent on its volatile games console business.
It has since released several mobile gaming titles including Super Mario Run, using its popular Super Mario Bros characters.
Nintendo said on Thursday it expects operating profit to rise 26.7 percent in the year through March to a nine-year high, as its Switch games console maintains sales momentum in its second year.
The initial success of the hybrid home-portable Switch has boosted Nintendo’s gaming software sales and encouraged more third-party publishers to make games for the console, a cycle which could further push up console sales.
The Kyoto-based company also said it named Managing Executive Officer Shuntaro Furukawa as new president to succeed Tatsumi Kimishima, effective after the general shareholders meeting in June.