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Reuters/Toru Hanai
- Most people think about the Switch console when they
think of modern-day Nintendo. - The company is placing a big priority on other
platforms too, like mobile. - Mobile could be the next big driver of growth for the
company. - Click
here to get
alive stockprice
for Nintendo.
Nintendo
released its Switch console in March with just one major
title, a new Zelda game.
The company has slowly been releasing new games for the console,
adding new Rabbids
and Mario
Kart games since its launch, but that’s just one aspect of
Nintendo’s multi-platform video game strategy.
“It is on mobile that Nintendo can reach billions of users,”Atul
Goyal,, an analyst at Jefferies, said in a recent note to
clients. “No other platform gives Nintendo that reach.”
Goyal said that too many analysts are under-appreciating the
large number of potential monetization platforms for Nintendo’s
popular characters. The Switch is getting most of
the attention, but the company just announced
its new Animal Crossing game for mobile.
Nintendo’s mobile strategy has been refined over time, starting
with the relatively poor performance of Super Mario Run, which
was monetized with a one-time purchase. The company’s Fire Emblem
game did better with the popular “freemium” model, but
lacked enough content to keep players engaged.
Goyal thinks that the upcoming “Animal Crossing: Pocket
Camp” is an even further improvement over previous
releases by the company and really demonstrates Nintendo’s
continued prioritization of all of its platforms. The timing of
the new Animal Crossing game is another hint towards Nintendo’s
multi-platform strategy.
“It has staggered the IP launch at different times,” Goyal said.
“And before one IP is launched, it communicates the next IP
launch,” exactly as it has with “Super Mario Oddysey” and “Animal
Crossing: Pocket Camp.”
Goyal says that Nintendo’s mobile games will continue to improve
and grow in sales. The Switch will be the company’s main driver
of revenue for the next three to five years, but mobile
could outpace the Switch in the long term.
“Nintendo is staggering its game pipeline across platforms,
impressively,” Goyal said. “Nintendo is not focusing on one
platform or another. Nintendo will monetise
its intellectual property treasure trove on various
platforms.”
Nintendo is up 80.31% so far this year.
Read more about Nintendo’s mobile strategy here.
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