Nintendo investor relations material

Nintendo is for sure one of those brand names you are familiar with and probably one of the most dominant gaming companies of the last few decades. Their business operations are, however, less well known, possibly because they count their profits in Japanese yen rather than US dollars. 

The Japan-based company has sold hundreds of millions of gaming devices and billions of games throughout its history, such as the Game Boy, the Super Nintendo Entertainment System, the Nintendo DS, the Wii, and the Switch. Some major franchises include Mario (their mascot and most recognized character), Donkey Kong, The Legend of Zelda, Pokémon, Kirby, and Super Smash Bros. 

In the coming years, you should keep an eye on a couple of key areas in Nintendo's development:

  • Their next-generation gaming device. Their latest device, The Switch, is getting old and needs a true upgrade. Nintendo will likely release a new device in the next year or two, given its historical upgrade cycle. This up-to-date device is imperative for Nintendo’s future success, as it is the engine that keeps people buying their games.

  • Subscription services. Nintendo recently built an online subscription service similar to Xbox and Playstation to get more consistent earnings. Their service Nintendo Switch Online (NSO), can be very lucrative, with a more significant amount of recurring revenue and high-profit margins. 

  • Expanding into non-gaming entertainment. Nintendo has decided to become more Disney-like, expanding their hugely successful franchises into theme parks and video entertainment. 

Nintendo is really transforming their business operations. The company might be a lot different in the future, with multiple theme parks, a growing library of movies, subscription services, and an eventual new hardware device. 

Dig deeper into the Nintendo Co. Ltd fundamentals on Quartr.