Nintendo Plays With Fire
Why Nintendo Shares Slipped to a Five-Month Low
Nintendo Co. found out with its first smartphone game it’s tough to get people to pay $10 even if the draw is Super Mario. With its second mobile title, the Japanese powerhouse is taking a different approach that is potentially more lucrative -- and much more controversial.
Fire Emblem, available Thursday for Apple Inc. and Android devices in 39 countries, costs nothing to download and play, but lures users into spending money to unlock special in-game items. The technique is called “gacha” in Japanese and it has all the controversy the English reading of the word implies. It’s extraordinarily profitable in Japan -- but even there it has raised concerns from regulators who say it can be addictive and manipulates people’s gambling spirit, or shako-shin in Japanese.
Nintendo jumped as much as 5.9 percent on Friday as the game rose to No. 4 in Japan's iOS revenue rankings after its release, according to researcher Sensor Tower. Partner DeNA Co. soared as much as 7.9 percent.