Nintendo is leveraging its iconic characters and intellectual property (IP) across a diverse range of ventures, from blockbuster films and immersive theme parks to merchandise and its latest gaming console, the Switch 2. This multi-pronged strategy aims to reignite nostalgia for long-time fans while simultaneously attracting a new generation of gamers, ultimately driving sales of its core gaming products.
“These characters, like Mario and Pikachu, they’re obviously Nintendo’s main IP franchises, and because they are so recognizable, they have a massive appeal,” noted Reuben Martens, a lecturer in film and media studies at Manchester Metropolitan University.
Nintendo President Shuntaro Furukawa articulated the company’s vision, stating, “We believe the combination of these three elements — the core of our business being Nintendo’s unique and original entertainment, and our guiding principles of growing the Nintendo IP fanbase and fostering long-term relationships with our consumers — will drive the medium-to-long-term growth of our business and allow us to leverage our unique strengths.”
The company’s strategic expansion into IP utilization has become increasingly pronounced over the past five years. In 2021, Universal Studios Osaka launched Super Nintendo World, a themed area dedicated to the Super Mario universe, which has since been replicated in other Universal Studios locations. The 2023 release of *The Super Mario Bros. Movie* proved a monumental success, grossing over $1 billion globally and paving the way for a planned sequel. Furthermore, a film adaptation of *The Legend of Zelda*, another of Nintendo’s flagship franchises, is currently in development. This expansive IP strategy is complemented by a robust merchandise line, encompassing everything from apparel to plush toys.
While IP-derived revenue currently represents a modest portion of Nintendo’s overall sales—approximately 3% in the first nine months of its fiscal year beginning March 2025—its primary function is to act as a powerful catalyst for driving consumers toward Nintendo’s core gaming offerings and attracting new players.
For instance, the success of *The Super Mario Bros. Movie* provided a significant, albeit short-term, revenue boost, which helped extend the lifecycle of the original Switch console. This strategic push contributed to the Switch becoming Nintendo’s best-selling device of all time. With a history dating back to the Famicom in 1983 (released internationally as the NES in 1985), Nintendo has cultivated a deep well of nostalgia across multiple generations of gamers. This nostalgic appeal, coupled with the inherent accessibility of its characters and worlds, has been instrumental in maintaining the company’s momentum.
“Nintendo has been able to foster that Disney feel through this really powerful harnessing of nostalgia and also, I think, accessibility—the fact that you can go in and immediately engage with these characters without prior knowledge,” Martens observed.
The performance of the recently launched Switch 2, which debuted last June, is now a central focus. Nintendo has already sold over 17 million units of the new console. The enduring popularity of its established franchises is evident in the success of *Mario Kart World*, currently the best-selling game for the Switch 2.
However, a significant challenge for Nintendo lies in its ability to continually innovate and reinvent its existing franchises. The risk of beloved characters becoming stale or losing relevance with evolving gamer preferences remains a pertinent concern.
“The one risk is that at some point in time, people could grow tired of the same IPs that Nintendo produces games around,” stated Serkan Toto, CEO of Kantan Games. “So Nintendo is sitting on a treasure trove of IPs, but the top three are Zelda, Mario, and Pokemon. Everybody is happy with these IPs… But what about 10 years in the future, or 20 years in the future? So Nintendo, I think, at some point, has to come up with new IPs, new ideas, in terms of characters, in terms of new worlds, because there is a certain risk that things might become a little bit stale.”
The strategic deployment of its IP across diverse entertainment mediums is crucial for Nintendo as it navigates the competitive landscape and aims to ensure the long-term success of its hardware and software portfolio. The company’s ability to balance the exploitation of its established, beloved characters with the introduction of fresh, compelling new intellectual property will be key to its continued dominance in the gaming industry.
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