High(rule) hopes… Nintendo said it’s making a live-action movie based on its “Legend of Zelda” video games. The stock popped this week after Nintendo’s announcement and earnings results (it also raised its annual profit forecast for the year). The Mario icon beat Q3 revenue expectations as the latest Zelda game, “Tears of the Kingdom,” continued to drive sales of its six-year-old Switch console.
Rupees: Nintendo has released 40+ Zelda games, including spin-offs and remakes, ever since the $3.4B franchise’s 1986 debut.
Open world: The Japan-based co’s US president, Doug Bowser (yes, that’s his real name), said Nintendo is evolving into an “entertainment company with gaming as a nucleus.”
Link to the past… With the exception of Pokémon (which Nintendo partially owns), gaming cos have struggled to move their IP beyond the console. Decades ago, Nintendo made an animated Zelda TV show and a Mario movie, both of which flopped. “Assassin’s Creed,” “Tomb Raider,” and “Doom” have all been made into 20%-Tomatometer flicks. But the industry recently got a power-up:
It’s-a-money: “The Last of Us” was HBO’s second-largest show premiere last year, and the “Halo” TV series was Paramount+’s biggest debut. Nintendo’s “Super Mario Bros. Movie” is this year’s second-highest-grossing film with $1.3B in global ticket sales.
More touchpoints can level up IP… To make the most of its beloved characters and worlds, Nintendo opened two Super Nintendo Worlds with two more under construction. And Netflix is building permanent in-person dining and shopping venues. Giving fans more ways to engage can create a flywheel: Nintendo’s president said the Mario movie boosted sales of the game, similar to how “Barbie” caused a spike in toy sales. Looking ahead, Nintendo said it plans to release one movie a year.