Will Nintendo "One-Up" the markets?

Nintendo has had a year of ups and downs following the release of the internet sensation Pokemon Go app. While shares were initially up more than doubled after Pokemon Go's release, they plummeted following the news that Nintendo didn't own as much of the app as it once stated.

With Nintendo set to release Super Mario Run on Android and Apple devices in December, do you think that Nintendo will be able to maintain steady growth after the initial pop? Below is a quote from an article by the Economist.


Nintendo’s shares are up by 15% since that announcement and by 38% since the start of the year. The game is likely to be available on Android, Google’s mobile platform, next year. Serkan Toto, a games consultant in Tokyo, expects as many as 1.5 billion downloads across both systems.

Link to the article.

 

At this point, Nintendo is a flier.

That being said, there are a lot of ways for Nintendo to generate return, based mainly on the properties it holds, such as Mario, Metriod, Pokemon and Legend of Zelda. With most media outlets running towards pre-conceived material, expect Nintendo to become a big player in the market. For example, Marvel characters are currently housed with Universal theme parks, but as Disney now owns these rights, and contracts are up, expect it to try and bring back Marvel, Universal may look to Nintendo to have characters in their parks. Netflix might try to create a "Game of Thrones" family type showed based upon the Legend of Zelda. There could also be a big play for movies, making a somewhat "Marvel Universal" building to a Super Smash brothers type movie, or some Pokémon type movie.

Currently, Nintendo is on the ropes in terms of hardware, but may be able to pull through with one big system or idea, similar to the approach with the Wii release.

If none of these hit, a potential buyout could be on the table.

Financially, P/E is around 190, but we all saw what happened to the stock price after the release of one mobile game.

As stated, Nintendo is a flier stock, more speculation that anything else.

 
Best Response

It's tough to speculate with Nintendo because they hold some valuable assets, but haven't really given any definitive guidance on how they plan to use them. Honestly I see them as a company that's at a crossroads and they need to come out with some sort of innovation that can bring them some long term stability. The past decade their product has been more of a short term novelty rather than anything that can seriously challenge the status quo of the video game/entertainment market. They can only jump from idea to idea for so long.

 

Huh-uh. Yeah. Pokemon has been popularized a lot! Almost all the people are playing in this game a lot! Personally, I came across the Pokemon video game since I was a child. I remember that I came across the Pokemon version that was on the Nintendo 64. I really wanted to try this game, so I asked my father to buy me a N64 with Pokemon :) My father said yes so I went home full of happiness... At home, I've played a lot but when I got older, unfortunately, my N64 got broken... However, I'm still playing in this video game a lot from the emulator, using the N64 rom version https://romsie.com/ of Pokemon that I can download freely.. Uh, this nostalgia..

 

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