Nintendo could be overvalued following a US$6 billion rally after taking its first steps into the smartphone games market. Nintendo’s shares soared 36 percent in the two days after the company announced plans to develop new titles for phones and tablet computers.
Analysts said the market favoured the move but some said the share price was overoptimistic about Nintendo’s potential to generate profits in a highly competitive area.
Nintendo is counting on its star-power iconic characters to crack a market that traditional publishers have ceded to free-to-play titles such as Angry Birds.
Nintendo is partnering with DeNA, owner of the Mobage network, to create new software and operate membership services that include applications based on its character line-up of plumbers, gorillas and princesses.
The new games will be tailored for smart devices, making them available on Apple iPhones or Samsung’s Galaxy devices, as well as Nintendo devices.
