Nintendo Acquires Retail Distributor JESNET

As reported on NeoGaf by Hero of Legend, Nintendo recently put a lot of money into a company called JESNET, a location known for working with Nintendo in the past regarding retail shipments.

1) Nintendo will acquire 70% of Sapporo-based JESNET for US$47 million+make it a subsidiary next April (when the new fiscal year starts).
2) JESNET has been distributing physical Nintendo products in Japan over the last years, was founded in 1952 and has 80 employees.
3) JESNET will also work together with another company called AJIOKA, which is in the video game wholesale business. So the NX can come ;).
4) The goal for Nintendo is to tightly control the entire value chain from developing video games to selling them, at least in Japan. /end

This is more important than it sounds, as this could lead to easier production costs and faster shipments of hardware. Considering the Wii’s biggest issue during its launch was lack of stock, this could bold well for the NX’s release if it is a success story like the Wii.

Whom It May Concern
August 25, 2016
Listed Company Name: Nintendo Co., Ltd. Representative: Tatsumi Kimishima
Representative Director and President
(Code Number: 7974 First Section of the Tokyo Stock Exchange)
Contact Person: Yutaka Takenaga
Deputy General Manager

Corporate Analysis & Administration Division (TEL 075 – 662 – 9600) / Notification of the Subsidiarization of JESNET Co. Ltd. and the Acceptance of Assignment of Business from AJIOKA Co., Ltd.

Nintendo Co., Ltd., (HQ: Kyoto Minami-ku; Representative Director and President: Tatsumi Kimishima; hereinafter “Nintendo”) would like to announce that it has passed a resolution to acquire the stock of JESNET Co. Ltd. (HQ: Sapporo, Hokkaido; Representative Director and President: Jou Suzuki; hereinafter “JESNET”) and make it a subsidiary of Nintendo at the August 25, 2016 meeting of the Board of Directors. Furthermore, on the same day as JESNET becomes a subsidiary of Nintendo, JESNET will accept the assignment of the video game wholesale business from AJIOKA Co., Ltd. (HQ: Nishio, Aichi; Representative Director and President: Gentarou Ajioka; hereinafter “AJIOKA”). JESNET and AJIOKA have also agreed to this resolution.

Sources: NeoGaf VIA Perfectly Nintendo, Nintendo Japan PDF File & 4-Traders.com

Background of JESNET

Background for the Subsidiarization and Acceptance of Assignment of Business

As a manufacturer of video game systems, Nintendo is committed to bringing smiles to people across the world through products and services. To continue to produce an unprecedented level of fun, Nintendo has worked to produce products that anyone can enjoy, regardless of their age, gender or past gaming experience. At the same time, JESNET and AJIOKA have been the largest-scale companies dedicated to handling Nintendo products in Japan for many years, selling mainly video game systems through their nation-wide distribution network.

This subsidiarization and acceptance of assignment of business will unify Nintendo’s product development acumen with JESNET’s and AJIOKA’s robust stocking and sales networks to form a supply structure that can meet consumer demand in a timely fashion. This means that Nintendo will have an integrated system from the development through supply of its products, allowing for rapid decision-making and an improvement in sales service. These steps are intended to strengthen the overall competitiveness of the Nintendo group and increase its corporate value.

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