Bloomberg News

Nintendo Pares Gains After Ruling Out Push Into IPhone Games

July 06, 2011

July 6 (Bloomberg) -- Nintendo Co. pared gains in Osaka trading after the company ruled out expanding into smartphone games, damping speculation triggered by affiliate Pokemon Co.’s development of software for Apple Inc.’s iPhones and handsets that run on Google Inc.’s Android operating system.

Nintendo’s strategy to develop software only for its own hardware “hasn’t changed and won’t change,” Yasuhiro Minagawa, a spokesman for the Kyoto-based maker of the Wii game console and DS portable player, said today by phone. Pokemon, 32 percent owned by Nintendo, is independent, he said. Pokemon said July 1 its ‘Tap’ game will debut this summer.

Nintendo shares rose as much as 4.9 percent, the most since March 16, before trimming gains after the company reiterated its development policy. The world’s largest maker of video-game players is facing competition from Apple and Google as their operating systems allow companies to develop games for smartphones.

“The share movement showed how much investors are hoping for Nintendo to change its strategy,” said Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo. “Nintendo should consider developing games for smartphones or players that can also act as mobile phones, as it suits the lifestyles of many people.”

Nintendo traded 1.2 percent higher at 15,610 yen at the 11 a.m. break on the Osaka Securities Exchange.

--Editors: Garry Smith, Young-Sam Cho

To contact the reporter on this story: Yoshinori Eki in Tokyo at yeki@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus