It got the world searching for pixelated monsters, but going by its latest grim earnings report, Nintendo’s got some work to do if it wants to get back in the green. Graham MacKay explains how taking a leaf out of Disney’s book could be the answer.
Super Mario eyeing a jump to Mickey Mouse style merchandising.
https://youtu.be/GjODEpBXr0o
With the Pokemon go craze in full swing, but earnings still deep in the red, Nintendo is taking a cue from the Disney playbook.
Looking to bring its characters past the struggling console business, and into the wider world of toys, books beyond.
“If you look at Disney, they make billions each year from merchandising deals.
In the last full year of Disney’s results, it was close onto a 10th of their revenue came from merchandising. At Nintendo that figure is still at the 1% level, so the potential is there for them, it’s a case of whether they can now seize that and get those deals done.”
With millions of people glued to their phones, hunting for cgi monsters, experts say now is the time to take Pikachu out of his pixilated comfort zone, and bring Mario and the rest of the Nintendo gang along for what could be a very financially rewarding ride.
The company’s resisted a shift in focus away from games for a long time.
But execs know that’s not good business in the long run.
“Their essential message has been watch this space, and you know there are things coming down the pipeline. So it’s a change in strategy for the company, and after several years of looking at their console sales stagnating, they seem to have come to the realization that this for Nintendo is now the best option.”
Of course, there’s no guarantee the company pull off a merchandising masterclass on Disney’s level.
Franchises like star wars and toy story helped raked in 4-and-a-half billion dollars from consumer products last year alone.
But right now, it’s hard to imagine a better opportunity to get Nintendo’s names beyond the digital map.
