Nintendo pulling a Disney
The Bank of Nook gets paid... Nintendo just dropped its best quarterly earnings in 13 years. The 131-year-old gaming legend brought in an expectation-crushing $2.2B in profit last quarter, and raised its annual forecast for the second time (#MarioFlex). Nintendo shares jumped 7% on the holiday Switch-mania:
Sweats. Mask. Switch... In 2020, the Switch wasn't just a gaming console... it was a lifestyle product. There were three strong winds at Nintendo's back positioning it for a blowout year:
Nintendo should pull a Disney... because it might have just hit peak console (Switch saturation is real). That's why Nintendo wants to monetize its characters outside of hardware/software. Disney is a master at this: it makes money off its characters in movies, sequels, and spin-offs — but also through theme parks, cruises, toys, and merch (Elsa-themed everything). Nintendo could benefit from a similarly self-reinforcing ecosystem. Unlike other major console-makers, it designs most of its own games (85% of them). Nintendo could cash in on that precious IP in a number of ways, including the upcoming Super Nintendo World theme park in Japan.