Nintendo's Stock Price Soars After Tencent's Announcement for Switch
It seems that there's no stopping Nintendo's success, thanks to its flagship console they released earlier this year.
The surge came after the confirmation that one of Chinese internet company Tencent Holdings Ltd.'s games will be coming to the Nintendo Switch. The game, titled "Arena of Valor," is a new MOBA game that is free-to-play, featuring 35 different heroes offering different roles and abilities.
The game's impending arrival on the console was announced during a Nintendo Direct live stream earlier this month.
Get Our Latest News for FREE
Furthermore, a report from The Wall Street Journal said that investors took the announcement positively. Sources shared that the development "could be a precursor to arrangements allowing Nintendo to sell the Switch and its mobile games in China." Moreover, the report also said that Nintendo is finding ways to tap and expand in the Chinese market and that they see Tencent as a viable partner.
Historically, China has been very strict when it comes to accommodating video game companies. It was only in 2015 when the country lifted its ban on consoles. The move allowed the entry of the Xbox One and PlayStation 4.
The downside, however, is that the games must first be screened and approved by the country's Ministry of Culture before they can be released and sold.
With over 300 million gamers in the country, China will certainly open a sea of opportunities for the Nintendo Switch to showcase its prowess. Some analysts believe that the Tencent's partnership with Nintendo will create a gateway for local companies in China.
"This is very positive in the longer term in getting Chinese publishers supporting the Switch," said David Gibson, an analyst for Macquarie Capital Securities.
The "Arena of Valor" is set to debut in the Nintendo Switch this coming winter. Before that, "Super Mario Odyssey," one of the company's most highly-anticipated games, will come out on Oct. 27.
