The Mario-verse is growing… The world’s most popular plumber is making money moves: Nintendo lifted its annual earnings forecast this week after reporting a 34% increase in quarterly profits. The Japanese gaming icon said chip shortages were still cutting into sales of its popular Switch console, but revealed Super Mario-sized plans to expand beyond video games:
Game Boy Advance(ing)… Nintendo’s expansion comes as the broader gaming industry slows: Roblox and Take-Two shares tumbled this week after both reported unexpectedly big losses. As the lockdown gaming boom fades, EA and others are also struggling to keep momentum. But Nintendo has a cheat code: Japan’s weak yen means Nintendo is earning more yen from overseas sales, after currency conversions (think: 1 USD now = more yen). Honda has also benefited. It’s the opposite of what’s happening to US companies who do biz abroad.
Mario is getting the Mickey treatment… because IP is a terrible thing to waste. Just ask Disney: the House of Mouse has proved that popular characters can successfully spin off into toys, sequels, merch, theme parks, and cruises. If Nintendo succeeds in transforming the Mario-verse into a park and media empire, it might be able to offset any gaming weakness — and pave the way for a Princess Peach sequel.