Wednesday in CE: Nintendo Stocks Surge on News of Tencent Deal
Shares of Nintendo shot up over 7 percent on Tuesday, reaching a nine-year high, after news broke that Japanese video game maker Nintendo struck a deal with Tencent to bring that company’s “Honor of Kings” title to the Nintendo Switch platform later this year.
That news alone is pretty important, because the mentioned title is one of China’s most popular games at the moment. But the reason the announcement generated so much positive buzz for Nintendo on Wall Street is the fact that this Tencent deal is expected to open the doors to the Chinese market for Nintendo. Despite being one of the largest video game companies in the world, Nintendo has done almost no business in China—one of the largest markets for video games.
The Tencent partnership won’t bring Nintendo products into China right away, but a market analyst told the Wall Street Journal on Tuesday that they expect to see the Switch become available in China by 2019.