Nintendo (NTDOY 0.39%) has a plan to grow its business beyond the Switch, but what is it? In this segment of "The Gaming Show" on Motley Fool Live, recorded on Feb. 7, Fool contributors Jon Quast and Jose Najarro chat about what's coming from the popular video game company.
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Jon Quast: I found this quote from Nintendo's president just to be fantastic and you can feel free to jump in as soon as I read it here. He says, this is what Nintendo's goal is: "To continue growing our core business, our fundamental strategy is to expand the number of people who have access to Nintendo IP with consumers in areas beyond dedicated video game platforms." In other words, they want to get consumers beyond the Nintendo Switch is what he's saying.
They have something like a 100 million switches sold to-date, around a 100 million accounts on Nintendo.com, saying that they want to go beyond that. They don't want to be limited by the Switch. "This includes applications for smart devices, which are ubiquitous throughout the world, as well as visual content, theme parks, and character-based merchandise." Guys, it sounds like he's watching the gaming show because this is what we have been talking about.
Jose Najarro: I think for Nintendo they were holding themselves back with just a Nintendo Switch. Honestly, I don't know how Nintendo Switch does it, and I know most video game consoles, I think the PS5 and the Xbox, they are usually sold for non-profit, so it's pretty much they end up making most of the money from game sales and all the other royalties fees. Nintendo escaping that box it was in, I think it's actually a great move for the company. I can't wait to be able to play maybe a Pokémon game on the mobile device instead of having to go purchase a Nintendo Switch or something.
Quast: It's so interesting how they're talking about that. I will point out that, I'm just remembering this now, something you just said made me think of it, while the sales of the Switch have been declining, what is interesting is that their game sales have actually been above what they were expecting. Maybe there's a correlation there that, OK, we can't get our hands on a console, but maybe people are willing to spend a little bit more on games, and they do have a little bit in mobile gaming as it is, but looks like they definitely want to go beyond that. That is really exciting there.