"Game IP" Sample: Is Nintendo finally going to become "Disney"?

Nintendo has finally transformed from a company solely focused on video games to a conglomerate that covers various entertainment formats, including theme parks and IP-based movies. It is expected to become another entertainment kingdom after Disney.

On Tuesday, Nintendo delivered an outstanding performance. Thanks to the strong sales of the "Super Mario Bros. Movie" and "The Legend of Zelda" games, Nintendo's profits in the first half of the year have steadily increased, surpassing analysts' expectations.

According to the financial report, Nintendo's sales in the first half of the year increased by 21% YoY to 796.2 billion yen (approximately 38.695 billion RMB), and operating profit increased by 27% YoY to 279.9 billion yen.

Nintendo also raised its net profit forecast for this fiscal year from 340 billion yen to 420 billion yen, and increased its software sales forecast for the Switch from 180 million units to 185 million units.

But the good news doesn't stop there. On the 8th, Nintendo announced that it plans to bring its popular IP "The Legend of Zelda" to the big screen, with Sony and Nintendo each contributing 50% of the investment, and Sony will be responsible for global distribution.

Nintendo said in a press release, "By actively participating in the production of movies and entertaining the public, Nintendo will continue to strive to create unique entertainment content and deliver it to as many people as possible."

This project has sparked great enthusiasm among netizens. The first social media post about the Zelda movie by Nintendo, written by its game producer and key figure at Nintendo, Shigeru Miyamoto, has already received over 110 million views.

Nintendo fans' biggest reaction to this news is excitement and relief.

Nintendo owns a series of beloved video game characters, including Mario, Luigi, Donkey Kong, Princess Peach, Zelda, and Kirby. However, these IPs have not been fully utilized for many years, which has been a concern for gamers. But now, things are turning around, and Nintendo is finally ready to expand these game IPs into a broader entertainment field.

The media remains optimistic about this. The "Super Mario Bros. Movie," released in April, grossed over $1.3 billion worldwide, becoming the second highest-grossing animated film in history. It is reported that 170 million people watched the movie in theaters, and countless viewers watched it at home.

Recently, a video of a group of first-grade elementary school students enthusiastically singing the theme song of the movie went viral on social media. This indicates that the Mario movie has helped the new generation develop a lifelong love for Nintendo's characters, just like their love for Disney through movies.

According to Nintendo, the movie has also boosted sales of Mario games. In the six months ending in September, sales of five old Mario games exceeded one million units, with a growth rate of over 30% YoY.The company also stated that its latest release, "Super Mario Bros.: Wonder", sold 4.3 million copies in the first two weeks, making it the fastest-selling Super Mario game in history.

In a report to clients, Jefferies analyst Atul Goyal said, "The tremendous box office success of 'Super Mario Bros. Movie' seems to have enhanced Nintendo's confidence in expanding its business scope. This is a significant event that could have a major impact on the future of Nintendo and Sony Pictures."

The upcoming release of the Zelda movie is likely to be another blockbuster, which will indicate that Nintendo is ready to expand its territory.

Meanwhile, Nintendo reiterated its plans to expand its theme parks this week. Earlier this year, its "Super Nintendo World" theme park in Hollywood began trial operations, and two theme parks in Orlando and Singapore are already planned.

In addition, there are reports that Nintendo plans to launch the next generation of the Switch console next year, which should bring another wave of strong financial performance.