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Nintendo acquires JESNET (a retail distributor)

Nov 26, 2006
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goldmetalsonic.wordpress.com
Update 5: The exact transaction is that Nintendo now owns 70% of JESNET for $47 Million USD and will finalize next April when the next Fiscal Year begins.

Dr. Serkan Toto said:
1) Nintendo will acquire 70% of Sapporo-based JESNET for US$47 million+make it a subsidiary next April (when the new fiscal year starts).
2) JESNET has been distributing physical Nintendo products in Japan over the last years, was founded in 1952 and has 80 employees.
3) JESNET will also work together with another company called AJIOKA, which is in the video game wholesale business. So the NX can come ;).
4) The goal for Nintendo is to tightly control the entire value chain from developing video games to selling them, at least in Japan. /end

Update 4: Good English summary here:

http://www.perfectly-nintendo.com/nintendo-announces-subsidiriazation-jesnet-distribution/

Update 3: They seem to be a retail distributor specifically?

Update 2: Info quote:

Background for the Subsidiarization and Acceptance of Assignment of Business

As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience.

At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.

This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with JESNET's and AJIOKA's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.

Update: Official English PDF:

https://www.nintendo.co.jp/ir/pdf/2016/160825e.pdf

###

Yeah, this happened.

Just caught wind of it on twitter and googled, here it is:

http://www.4-traders.com/NINTENDO-C...ance-of-Assignment-of-Business-from-22952148/

To Whom It May Concern

August 25, 2016

Listed Company Name: Nintendo Co., Ltd. Representative: Tatsumi Kimishima

Representative Director and President

(Code Number: 7974 First Section of the Tokyo Stock Exchange)

Contact Person: Yutaka Takenaga

Deputy General Manager

Corporate Analysis & Administration Division (TEL 075 - 662 - 9600)
Notification of the Subsidiarization of JESNET Co. Ltd. and the Acceptance of Assignment of Business from AJIOKA Co., Ltd.

Nintendo Co., Ltd., (HQ: Kyoto Minami-ku; Representative Director and President: Tatsumi Kimishima; hereinafter "Nintendo") would like to announce that it has passed a resolution to acquire the stock of JESNET Co. Ltd. (HQ: Sapporo, Hokkaido; Representative Director and President: Jou Suzuki; hereinafter "JESNET") and make it a subsidiary of Nintendo at the August 25, 2016 meeting of the Board of Directors. Furthermore, on the same day as JESNET becomes a subsidiary of Nintendo, JESNET will accept the assignment of the video game wholesale business from AJIOKA Co., Ltd. (HQ: Nishio, Aichi; Representative Director and President: Gentarou Ajioka; hereinafter "AJIOKA"). JESNET and AJIOKA have also agreed to this resolution.

And LOADS more in the link.

Possible connection to that mysterious $100 Million non-gaming acquisition we heard about?

Still trying to figure this out. Seems like Nintendo worked with JESNET for years.
 

Jonnax

Member
Jun 23, 2013
4,562
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What do they do?


Here's a product page of their's
http://www.jesnet.co.jp/product.html

Looks like they're a Japan wide distributor that mainly distributes Nintendo products.
Established in 1952, they've got 80 employees.



 

ggx2ac

Member
Apr 5, 2016
7,164
1
370
So if I understand this correctly, this was what they manufactured?

Nintendo game systems, game system accessories, game software,

card games, other amusement business

I just can't see any more specific details in the article.
 

Cow Mengde

Banned
Dec 26, 2007
20,219
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Yeah, also confused as to what they do. If Nintendo has worked with them for years, then what did they do for Nintendo previously?
 

KingBroly

Banned
Mar 18, 2015
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The best guess I have after a quick search is that they're a Toy Company of sorts. But I could be wrong.
 

Zalman

Member
Aug 5, 2013
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It's on the site.

Background for the Subsidiarization and Acceptance of Assignment of Business

As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience.

At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.

This subsidiarization and acceptance of assignment of business will unify Nintendo's product development acumen with JESNET's and AJIOKA's robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.
 

L~A

Member
Jan 19, 2013
12,188
0
610
Possible connection to that mysterious $100 Million non-gaming acquisition we heard about?

Still trying to figure this out. Seems like Nintendo worked with JESNET for years.

No. This was announced today, and will take effect in April 2017.

Besides, JESNET is going to be a distributor. and it's Japan-only.

It's nothing really exciting, unfortunately (well, not for the majority of people, I guess ;))
 

Masterspeed

Member
Mar 1, 2016
1,491
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Jolly Ol England
I'm assuming this means more shipping and going of psychical materials. Like More Amiibo, controllers and consoles. I'm guessing the NX is going to have super hard to find controllers and annoyingly rare Amiibo.
 

antonz

Member
May 12, 2010
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Seems like its all about streamlining the distribution network for Nintendo Products in Japan.
 

E-phonk

Banned
Jan 1, 2006
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Belgium
Something to do with amiibo like figures etc I guess as they made the animal crossing figures?

Edit: and distribution it seems
 

Aostia

El Capitan Todd
Sep 2, 2011
18,552
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So they are distributors
smart move, even if it would be smarter to buy also a retail chain maybe.?
 

ggx2ac

Member
Apr 5, 2016
7,164
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No. This was announced today, and will take effect in April 2017.

Besides, it's got nothing to do with tech, JESNET is going to be a distributor.

It's nothing really exciting, unfortunately (well, not for the majority of people, I guess ;))

So Nintendo wants to fortify their distribution networks in Japan, from the looks of it.
 

cw_sasuke

If all DLC came tied to $13 figurines, I'd consider all DLC to be free
Sep 9, 2006
27,409
3
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So they are distributors
smart move, even if it would be smarter to buy also a retail chain maybe.?

That would be quite expensive also i dont see why Nintendo would need or want to buy a retail chain in Japan.
 

TheMoon

Member
Jul 1, 2014
21,766
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475
This is a retail distributor for Japan.

Nothing of interest for anyone here. It's not about NX. Move along people. :D
 

Calvero

Banned
Aug 28, 2013
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but what does this mean for the NX. let's speculate. quick someone make a youtube vid and 8 threads
 

ggx2ac

Member
Apr 5, 2016
7,164
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Keyword from the PDF,
5. Future Business Projection
This subsidiarization and acceptance of assignment of business will not have an effect on results for this
fiscal year. Nintendo will begin including the effect on results in the earnings forecasts for the next fiscal year
and later.

Now I just realised the timing of this. The sale of the Seattle Mariners was confirmed for $661 million. Nintendo uses that to fund buying those distributors.
 

crinale

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Sep 25, 2008
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JESNET has been handling Nintendo distribution for years it seems. I think they'll continue doing what they've been doing
 

ggx2ac

Member
Apr 5, 2016
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To add more to the discussion. There have been times when Nintendo has had low stock of consoles and huge hitting software in Japan, so possibly this could help make things easier for them having direct access to that distribution network to observe things, rather than have retailers notify Jensen and then Jensen notify Nintendo etc.

I'm just imagining this as the case though, there's other reasons like they no longer have to pay fees to the distributors since they own them. lol
 

exmachina64

Banned
Dec 15, 2011
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Seems like a decent move for Nintendo; they're doubling down on the Japanese market and becoming more vertically integrated.
 

duckroll

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Jun 7, 2004
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Wow, this is big news!!!!! What could it possibly mean?!?!?! Who is JESNET????? Does this mean Pokemon Go is coming to the NX?
 

L~A

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Jan 19, 2013
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So Nintendo wants to fortify their distribution networks in Japan, from the looks of it.

It's more just that, For games, they now have almost everything internally, from game development to actual disitribution. Even debugging is internet with Mario Club.

For consoles it's a bit different since they're manufactured in China (and it's most definitely not going to change any time soon, not with how cheap labour is there).
 

ggx2ac

Member
Apr 5, 2016
7,164
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It's more just that, For games, they now have almost everything internally, from game development to actual disitribution. Even debugging is internet with Mario Club.

For consoles it's a bit different since they're manufactured in China (and it's most definitely not going to change any time soon, not with how cheap labour is there).

I'm guessing you meant internal but autocorrect happened, like me usually.

Yes, iirc GameCubes were manufactured in Japan but then it switched to China when Wii came out.

So I guess this is fortifying their whole base of operations as you say, by making everything internal. No wonder leaks happen rarely in Japan for Nintendo.

Edit:
Hero of Legend said:
Update 5: The exact transaction is that Nintendo now owns 70% of JESNET for $47 Million USD and will finalize next April when the next Fiscal Year begins.

Wow, I wonder if they are going to make any other acquisitions. They made quite a bit on the sale of their partial stake of the Mariners for $661 million, they still have change for more things.
 
Nov 26, 2006
24,196
6
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goldmetalsonic.wordpress.com
Wow, I wonder if they are going to make any other acquisitions. They made quite a bit on the sale of their partial stake of the Mariners for $661 million, they still have change for more things.

Did we ever get the amount Nintendo spent on Monolith Soft? Can't find that info at the moment. They did buy 80% initially with BN retaining 16%. Nintendo eventually bought that 16% (the other 4% I guess is scattered).
 

duckroll

Member
Jun 7, 2004
114,734
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Did we ever get the amount Nintendo spent on Monolith Soft? Can't find that info at the moment. They did buy 80% initially with BN retaining 16%. Nintendo eventually bought that 16% (the other 4% I guess is scattered).

Nintendo owns 96.6% of Monolithsoft. The remaining 4% is split between Sugiura (1.25%), Takahashi (1.25%), and Honne (0.83%). None of it is scattered.