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Business

Game developer DeNA retreats to Japan

TOKYO -- DeNA is withdrawing from smartphone game development in Europe and the Americas.

The Japanese mobile gaming company has already closed its base in Europe, and said Tuesday it would also dissolve subsidiaries in the U.S. and Chile. Once it does that, Tokyo-based DeNA will no longer have any game development capabilities in the West.

Instead, the company will work with Nintendo and other partners in Japan to create games designed for global distribution.

DeNA has developed mobile games in the U.S. since 2008 and significantly expanded its capabilities there in 2010 with the acquisition of Ngmoco for more than $300 million.

But the U.S. operations never got out of the red. Differences in culture and business practices added to the difficulty of producing hit games, as did fierce competition for software engineers.

DeNA expects to book costs of some 3 billion yen ($28.8 million) in the October-December quarter to dissolve DeNA Global in San Francisco and Atakama Labs in Santiago, Chile.

Games featuring perennially popular characters have stood out from the crowd of titles available for smartphones -- witness the buzz over Nintendo thanks to "Pokemon Go" and the upcoming "Super Mario Run." DeNA seems to hope that collaboration with Nintendo will help its chances of reaching overseas markets from Japan.

(Nikkei)

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