For all its global popularity, Nintendo Co. NTDOY 6.06% has had relatively limited business in China. Now, a deal with Tencent Holdings Ltd. TCEHY -1.16% has investors excited at the prospect of the Japanese companys Switch console and smartphone games taking off in one of the worlds biggest game markets.
Nintendo shares shot up 7.1% to a nine-year high Tuesday on word that one of Chinas most popular videogamesTencents Honor of Kingswill be available on the Switch this winter. The game is called Arena of Valor in Europe, where it was introduced in August; a U.S. launch under that name is set for later this year.
People familiar with Nintendos thinking said it has been looking for ways to expand in China and sees Tencent as a possible partner, although they cautioned that nothing is in place yet. They said Nintendo looked at selling its Wii U console in China but dropped the plan.
https://www.wsj.com/articles/nintendo-deal-with-tencent-paves-way-for-china-push-1505825294