Why is Nintendo partnering with Pokemon Go creator Niantic?

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Nintendo is partnering with Niantic to develop augmented reality smartphone games.

Nintendo is collaborating with Niantic, the company behind the popular augmented reality (AR) game Pokemon Go, to create new AR smartphone titles. The initial collaboration will feature Nintendo's Pikmin characters in a game slated for release this year. This partnership aims to leverage Niantic's established AR technology and experience in mobile gaming to enhance Nintendo's presence in the smartphone market.
Leveraging Proven Augmented Reality Technology

The collaboration is centered on Niantic's expertise in augmented reality, the technology that superimposes digital images and animations onto the real-world view captured by a smartphone's camera. This was the core component of Pokemon Go's global success, enabling characters to appear in users' everyday environments. Nintendo's representative director, Shigeru Miyamoto, noted that Niantic's AR technology will allow players to perceive the world as if Pikmin characters are secretly living all around them.
Enhancing Mobile Gaming Strategy and Player Engagement

Beyond the technological integration, the partnership is designed to make walking a more enjoyable activity for players. Miyamoto stated that the new app would be built around the concept of "making walking fun." Historically, Nintendo has been cautious about expanding beyond its traditional console hardware. However, in recent years, the company has increased its output of mobile titles, including Super Mario Run and Mario Kart Tour, indicating a strategic shift towards mobile platforms.
Addressing Investor Expectations for Smartphone Revenue

The collaboration could also serve to address concerns from investors regarding Nintendo's revenue generation from smartphone applications. While specific financial details are not elaborated upon, the partnership represents a move to capitalize on the lucrative mobile gaming market. Niantic CEO John Hanke expressed enthusiasm for this joint venture, viewing it as a natural progression for expanding their respective game portfolios and collaboratively shaping the future of AR.

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Why is Nintendo partnering with Pokemon Go creator Niantic?

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