IN THIS EPISODE, YOU’LL LEARN:

• How Nintendo evolved from a playing card company into one of the world’s most influential gaming businesses
• Why iconic franchises like Mario, Zelda, and Pokémon form the foundation of Nintendo’s competitive moat
• The strategic shift from one-time console sales to recurring revenue through subscriptions and digital games
• How the Nintendo Switch transformed the company’s business model and profitability
• Why the Switch 2 could expand Nintendo’s ecosystem with stronger hardware and third-party support
• How movies, theme parks, and mobile apps help extend Nintendo’s intellectual property beyond gaming
• Whether Nintendo’s current valuation offers an attractive opportunity for long-term investors
• And so much more!

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:00] Clay Finck: For more than a century, Nintendo has shaped childhoods and increasingly entire generations across the globe. The company has created cultural icons like Mario, Zelda, and Pokemon, all of which are franchises that have transcended gaming to become globally recognizable entertainment brands.

[00:00:18] Clay Finck: Nintendo has an incredibly fascinating story as they’ve had multiple flops that threaten their entire business model. For decades had to weather through the dramatic boom bust nature that defined the gaming industry. But over the years, Nintendo has continued to reinvent itself and thoughtfully expanded to new business segments, including movies, theme parks, mobile apps, online subscriptions and merchandise, all while staying true to its mission of creating unique, intuitive and family friendly entertainment that puts smiles on the faces of everyone they touch.

[00:00:51] Clay Finck: On today’s episode, we will explore Nintendo’s 137 year history. Its recent strategic shift that reshaped its entire business model, the competitive dynamics surrounding the Switch to and whether this iconic Japanese company can continue compounding value for shareholders in the years ahead. This was a very fun company to research, so I hope you enjoy today’s episode on Nintendo.

[00:01:16] Intro: Since 2014 and through more than 190 million downloads, we break down the principles of value investing and sit down with some of the world’s best asset managers. We uncover potential opportunities in the market and explore the intersection between money, happiness, and the art of living a good life. This show is not investment advice. It’s intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now, for your host, Clay Finck.

[00:01:58] Clay Finck: Hey everybody. Welcome back to The Investor’s Podcast. I’m your host Clay Fink, and on today’s episode we’ll be breaking down Nintendo. To kick off today’s episode, I wanted to start by going back through the history of the company, because to really understand where this company is today, you have to appreciate the journey that brought them here.

[00:02:17] Clay Finck: Nintendo is one of the most influential and successful gaming companies in the world. They’ve been in the video game industry since the industry’s inception. In time and time again, they’ve been at the forefront of innovation. But what’s interesting is that Nintendo did not start in video games at all.

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