TOKYO (Reuters) - Japanese video game maker Nintendo Co said on Friday it has teamed up with Tokyo-based online games developer Cygames Inc, aiming to step up the mobile gaming business and reduce reliance on volatile console sales.
The Kyoto-based company will buy a 5 percent stake in unlisted Cygames, known for its blockbuster "Granblue Fantasy" game, for an undisclosed amount.
As part of the tie-up, Nintendo will release a jointly developed action role-playing game called "Dragalia Lost" for smartphones this summer, Nintendo said.
The game will be launched in Japan, Taiwan, Hong Kong and Macau at first, and later in North America and Europe.
Nintendo entered mobile gaming under partnership with online gaming firm DeNA Co in 2015 as part of an effort to stabilize earnings highly dependent on its volatile games console business.
It has since released several mobile gaming titles including Super Mario Run, using its popular Super Mario Bros characters.
(Reporting by Makiko Yamazaki; Editing by Gopakumar Warrier)