For all its global popularity, Nintendo Co. NTDOY 6.06% has had relatively limited business in China. Now, a deal with Tencent Holdings Ltd. TCEHY -1.16% has investors excited at the prospect of the Japanese company’s Switch console and smartphone games taking off in one of the world’s biggest game markets.

Nintendo shares shot up 7.1% to a nine-year high Tuesday on word that one of China’s most popular videogames—Tencent’s “Honor of Kings”—will be available on the Switch this winter.

The game is called “Arena of Valor” in Europe, where it was introduced in August; a U.S. launch under that name is set for later this year. People familiar with Nintendo’s thinking said it has been looking for ways to expand in China and sees Tencent as a possible partner, although they cautioned that nothing is in place yet. They said Nintendo looked at selling its Wii U console in China but dropped the plan.

https://www.wsj.com/articles/nintendo-deal-with-tencent-paves-way-for-china-push-1505825294

It would be a massive boost for Nintendo if they manage to enter the chinese market. Nintendo's IPs would fit well due to ther family-friendly nature (and thus nothing to upset the chinese censors), and they like mobile gaming already, so a hybrid machine would make a good impression. Even more if they introduce their mobile games there too.

How is China one of the biggest gaming markets if it's a secondary concern for Nintendo?

More importantly how can China be important at all if they're not tracked on VGChartz

AngryLittleAlchemist said: How is China one of the biggest gaming markets if it's a secondary concern for Nintendo? More importantly how can China be important at all if they're not tracked on VGChartz

We will still have Nintendo official numbers, that's of course more important. :)

This has been said a dozen times since the beginning of the 7th generation though; the console market just isn't that big of a deal in China and the consoles that do release there see very limited lifetime sales in spite of great performances elsewhere. They said the very same thing about the Wii and the PS3 in their day; China (and to a lesser extent, India) would be a major factor in global sales. This never happened, of course.
China is irrelevant, they're better off going for it even more in Japan, remain stable in the North American market and increase their sales in Europe instead.

Times change, neither Wii and neither PS3 were relased in China, China like market is much more open today than 5-10 years ago, and Nintendo games (that usually don't have blood and big violence) would be good fit for China market. I dont say that Switch in China will be big, butdefinatly could be at least doing OK.

They can release Switch in China, and remain stable sales in US and increase sales in Europe.

AngryLittleAlchemist said: How is China one of the biggest gaming markets if it's a secondary concern for Nintendo? More importantly how can China be important at all if they're not tracked on VGChartz

China's market was closed to foreign console manufacturers from 2000 to 2015.

Shirtless Mario won't make it past Chinese censors. Westerners don't look that good half-naked, it's propaganda.

Well, being able to be ok in the eyes of the censors allows the game to be sold there in the first place. That's a huge advantage over games that can't be sold without massive modifications or just can't. Ever.

Ans yeah, the iQue lineup has been selling in China for years now, but now that the chinese market is opening to the actual official consoles, it could really be a turning point.

Im sorry but I am with Mummelman on this one. China is relevant and will remain so for the forseeable future, when it comes down to console game. They can release the hadrware, but they will never get the software flow going, at least not with the curent laws in place. Im not saying that it cant do a million LT in China, its just pretty much peanuts when it will come down to the rest of the world.