Mobile game company DeNA and Nintendo are all set to enter into a capital and business alliance under which the companies will develop new games for smart devices and mobile phones, putting to use Nintendo's intellectual property.

Nintendo chief executive Satoru Iwata also made an announcement that Nintendo is developing a new hardware platform, called the NX. The Japanese companies did not further describe the gaming hardware, NX.

The alliance of the two companies will allow Nintendo to, at last, get a piece of the mobile games space. The deal will also allow DeNA, which is having strong roots in mobile gaming, to fortify its already strong position in smartphones and tablets.

The collaboration will have Nintendo acquiring DeNA's 15,081,000 treasury shares, amounting to 10 percent of its outstanding stock. Under the deal, DeNA will get 1,759,400 shares, amounting to 1.24 percent of Nintendo's outstanding stock.

DeNA will work in collaboration with Nintendo to form a multi-device membership service for these new games. The new games will feature Nintendo characters and properties. Nintendo's 3DS systems and Wii U will access the same network.

No ports of the current Nintendo games will come out of this deal, however all IPs are suitable for use.