JEFFERIES: People are overlooking Nintendo’s chance to reach 1 billion users – Business Insider
- 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 a liveÃÂ stock price for Nintendo.
Nintendo released its Switch console inÃÂ March with just one major title, a new Zelda game.
The company has slowly been releasing new games for the console, adding newÃÂ Rabbids andÃÂ 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 gettingÃÂ most of theÃÂ 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.
GoyalÃÂ thinksÃÂ that the upcoming “Animal Crossing: Pocket Camp” is an even further improvement over previous releasesÃÂ 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 nextÃÂ 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.ÃÂ Nintendo will monetise itsÃÂ intellectual property treasure trove on various platforms.”
Nintendo is up 80.31% so far this year.