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Business deals

Nintendo invests in gaming-app provider

Console maker plans to diversify its Switch-dependent portfolio

Nintendo and Cygames will collaborate on the release of a role-playing app, "Dragalia Lost," later this year. (Photo from Cygames press release)

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.

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