The video game industry generated around $185 billion in 2022. That’s bigger than the music and film industries, and sports leagues - the NFL, the NBA, the MLB, the Premier League, the La Liga and the IPL - combined. Now, sure this field has varying forms and targets different consumer groups. There are the PC gamers, the mobile gamers and the home console gamers.
Home consoles are the most prevalent form for semi-pro to professional gamers. This market has three major players - Sony’s PlayStation, Microsoft’s Xbox and Nintendo. These three command a major market share in the console industry with Sony leading the way. Sony and Microsoft, however, always seem to have similar market offerings, launching around similar timeframes and providing similar computing power to gamers. They often compete neck-to-neck and vie for the same customer. Nintendo, in contrast, takes a different route. Their consoles don’t pack quite the same punch but make up for it in great exclusive games, often developed by them. These exclusives often play on people’s emotions and nostalgia and that’s what Nintendo tries to play on. But before we start talking about Nintendo’s genius today, we’ve got to take a step back. We need to understand where they came from.
Nintendo, based in Kyoto, Japan, is huge in the video game world. But before they were changing the game with Super Mario and Zelda, they were making playing cards in 1889. And while cards weren’t exactly the gaming equivalent of a revolutionary idea, they laid the foundation for what would become one of the most influential entertainment companies in history. Fast forward to the early 1980s, when Nintendo decided to take a bold turn with the launch of the Nintendo Entertainment System (NES). Nintendo didn’t stop at just creating consoles; they crafted entire worlds. Super Mario Bros. kicked off the madness in 1985, followed by iconic hits like Donkey Kong, The Legend of Zelda, and Metroid. And then came Pokémon in 1999, taking over the world.
Over the years, Nintendo has cranked out franchises that are basically household names everywhere. There’s Mario, Donkey Kong, The Legend of Zelda, Metroid, Pokémon, Animal Crossing, Pikmin, Splatoon — the list goes on! The aim was and has been to develop and deliver unique entertainment experiences for everyone. This goal is reflected by the Nintendo Switch family of systems and the manufacturing and marketing of video games relating to the intuitive representation of unique designs. Nintendo has become a widely renowned, household name due to the massive reach they possess over worldwide entertainment. Whether you’re someone who grew up chasing after Mario’s mushrooms or someone who can’t escape the Pokémon craze, Nintendo’s reach is everywhere. They’re not just a gaming company—they’ve infiltrated TV, cinema, playing cards, you name it! And to think, this all started with a simple idea in Japan.
Nintendo holds copyrights for properties such as Mario and Zelda, which cover video games, software, music, artwork, and other creative elements. These copyrights protect various aspects of their intellectual property, including game mechanics, scripts, and in-game assets (such as Mario, Zelda, and other characters). Additionally, Nintendo uses these protections to guard against fan projects, ROM hacks, and unauthorized distribution of their games or content. They also own patents covering aspects such as console hardware and unique game mechanics, including those used in the Nintendo Switch, as well as the dual-screen design and functionalities of the Nintendo DS.
Nintendo’s game library is huge and diverse, with classics like Mario and Zelda. And 80-90% of their games are rated E or E10+, meaning they’re for everyone—7-year-olds, 70-year-olds, and everyone in between. It’s not about age, it’s about fun. Their games are timeless which brings wonder to the younger players, and have an element of nostalgia which gives the older players something to enjoy. Their simple controls, even motion controls, make gaming accessible to all, from casual players to hardcore fans. Nintendo's mission? Put a smile on everyone’s face. Games like Mario Kart, Wii Sports, Switch Sports etc. are best sellers in the Nintendo library due to them being games with simple controls and the fact that they are games that the whole family can enjoy. Their priority on the gameplay rather than graphics makes it so that the games they make are enjoyable regardless of the limitations in their hardware. This accessibility makes it so that a whole family can come together and enjoy games as it needs no prior experience and anyone can pick it up on the fly. This makes up one of Nintendo’s greatest strengths - the family aspect. They can market their games as fun for the family and they will sell games as it provides a bonding opportunity for the whole family.
Nintendo’s multitude of IPR and their exclusivity often drive people to Nintendo consoles even if they have a PlayStation or an Xbox because Nintendo doesn’t compete directly in that space. If you look closely, you will see that Nintendo’s product offerings are never about having the biggest, the shiniest, or the most powerful machine on the planet. They rather try to captivate the public with their exclusive games. Super Mario, Zelda, Pokémon — these franchises are golden! They know that people will buy their consoles for that one game, that one experience you can’t get anywhere else. Therefore, where Xbox and PlayStation are substitutes, Nintendo occupies a unique space. Their universality and family-focused offerings create a culture of fun that is way more appealing than just some fancy graphics, which gives them a unique proposition as being a be-all gaming system and that in turn, helps them outperform their competitors.
When you buy a Nintendo Switch, you’re not just buying a console, you’re buying into that entire ecosystem—those iconic characters, their legendary stories, and the promise of more adventures to come. And that’s the exclusivity Nintendo wants to sell you. The stock price doesn't just fluctuate on hardware sales; it's built on the enduring value of the brand. And Nintendo has built an ecosystem that has a lasting value. The company isn’t relying on the next big tech upgrade. They’re relying on content that has a much longer shelf life than the latest Xbox or PlayStation. As people continue to buy the Switch, as more and more players flock to exclusive titles like Animal Crossing, Smash Bros., and Splatoon, Nintendo is steadily building a loyal consumer base, and that’s reflected in their valuation. The higher the demand for these exclusive titles, the stronger the Nintendo brand becomes and the more likely we are to return to them because they are the only ones offering those exclusive titles.
Nintendo’s not about the next big tech upgrade; they’re about delivering experiences that last, making their stock not just a bet on consoles, but on cultural legacy. As long as they keep delivering those iconic games, their brand strength will keep fueling investor confidence.
Written By: Aditya Bahl, Ranveer Munjal, Aryan Joshi
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