Nintendo Is Playing the Long Game in China

Nintendo (OTC:NTDOY) and Tencent (OTC:TCEHY) launched the Switch console in China on Dec. 10, bringing the system into the world's most populous country and one of its biggest gaming markets. The console has been hugely successful in other parts of the world, with roughly 42 million units sold at the end of September. But finding success in China will be an uphill battle. The Chinese market typically hasn't had much love for dedicated game consoles, instead preferring PC and mobile platforms, and it's unlikely that launching the Switch there will be a big performance driver for Nintendo. On the other hand, partnering with Tencent and launching its console-handheld hybrid in the market is still a smart step toward building a long-term position in the country.