TOKYO—Pokémon Co.’s chief executive said Tuesday his company plans to create games for Nintendo Co.’s next-generation system, which people familiar with the plans say is likely to meld features of traditional consoles and hand-held devices.

Tsunekazu Ishihara was speaking in an interview as his company, an affiliate of Nintendo that handles licensing of Pokémon characters, responds to the world-wide social phenomenon generated by its smartphone game “Pokémon Go.” Its makers say the game has been downloaded more than 500 million...