[Update] Nintendo announces subsidiarization of JESNET (distribution)

Update: yesterday, during the meeting with investors, Nintendo shared more details about the new company created as a result of the subsidiariazation of JESNET:

Today, Nintendo announced that during the latest meeting of the Board of Directors, a resolution was passed to acquire the stocks of JESNET Co. Ltd, which will therefore become a Nintendo subsidiary. What is the company going to do exactly? They’re going to take care of distribution for Nintendo games and consoles, quite simply… yeah, not really the most exciting of acquisitions!

Nintendo notes that “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”. The company chose to go with this acquisition in order to “unify Nintendo’s product development acumen with JESNET’s and AJIOKA’s robust stocking and sales networks”.

Long story short: Nintendo acquired JESNET in order to ensure its supply structure can meet consumer demand in a timely fashion. With JESNET as a subsidiary, Nintendo will deal with pretty much everything internally, from development of games to their distribution. According to the company, this was done in order to “allow[…] for rapid decision-making and an improvement in sales service”.

JESNET Co. Ltd will officially become a Nintendo subsidiary on April 3rd. Nintendo specifies that this will not have an impact on financial results during this Fiscal Year (which ends on March 31st, 2017).

Source: Nintendo