TOKYO -- Nintendo on Friday announced an investment in Cygames, a Japanese gaming app provider.
Nintendo said it will buy 5% of Cygames' shares by May 31.
The two companies will collaborate on sales and on the development of new products.
Perhaps this summer, Nintendo will release "Dragalia Lost," an action role-playing game developed by Cygames, in Japan, Taiwan, Hong Kong and Macao. The partners will also consider releasing the app in North America and Europe.
Tokyo-based Cygames is a subsidiary of CyberAgent, set up in 2011. It owns popular smartphone titles "Shadowverse" and "Granblue Fantasy."
Nintendo is dependent on hardware-based products. Its revenue streams come mainly from the Nintendo Switch console and Nintendo 3DS handheld.
The company's smartphone projects have been limited.
