$432 million Super Nintendo World is coming to Universal Studios Japan by 2020

Universal Studios Japan will be the first site for "Super Nintendo World", a themed area with rides and attractions featuring the gaming giant's famous characters, the two companies said on Monday.

The area will open in time for the Tokyo Olympics in 2020 and will cost more than 50 billion yen ($431.78 million).

In November, Nintendo announced that it would be creating Nintendo-themed areas in Universal Studio locations in Japan, Orlando and Hollywood. The announcement on Monday confirmed the timeline, cost, first location, and features of the area.

"Super Nintendo World will be comprised of expansive and multilevel environments filled with unprecedented, state-of-the-art rides, interactive areas, shops and restaurants, all featuring Nintendo's most popular characters and games," Universal Studios Japan, said in a press release.

There will be characters and themes from the "Super Mario" series and other popular Nintendo characters.

Japan will see 11.7 trillion yen of economic benefits with approximately 1.1 million jobs being created as a result of the Nintendo-themed area, Universal Studio Japan claimed, citing research by Katsuhiro Miyamoto, a professor at Kansai University, released on Monday.

The announcement comes as Nintendo has gone through a brand revival this year thanks to popular mobile games like "Pokemon Go", which it was involved in, as well as the upcoming "Super Mario Run" game on Apple's iPhones, set to be released on December 15.

While the theme park space is unlikely to impact earnings in the short-term, analysts said the move is important because it shows Nintendo's willingness to capitalize on its strong characters.

"It is another example of how the company is looking to monetize away from the traditional gaming platform. I think you are seeing more effort to monetize these great franchises across multiple efforts," Neil Campling, head of global technology, media, and telecoms research at Northern Trust Capital Markets, told CNBC by phone.

Nintendo shares in Japan closed up 0.5 percent higher, but have rallied over 75 percent year-to-date.

Disclaimer: Comcast NBCUniversal – the parent company of CNBC – owns a 51 percent majority interest in Universal Studios Japan.