Gaming Consoles Part 3: Nintendo - [Business Breakdowns, EP.203]

Business Breakdowns

Today's episode is the third in our three-part miniseries on video game consoles. Here, we are breaking down Nintendo. Our guest is Ryan O'Connor, the founder of Crossroads Capital. He has a wealth of knowledge about Nintendo, and you will hear it throughout this episode.

We discuss the history of the brand and business, including how it revitalized the industry in the 1980s, some of its strategic decisions, and how the Nintendo Switch is a new economic opportunity for the business. That ties into the console thesis, which we have discussed in the previous two episodes.

Please enjoy this Breakdown of Nintendo.

Gaming Consoles Part 1: The Thesis

Gaming Consoles Part 2: Sony

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes

(00:00:00) Welcome to Business Breakdowns

(00:02:52) Episode Overview: Nintendo Breakdown

(00:03:58) Nintendo's Business Transformation

(00:06:57) The Origins of Nintendo

(00:09:14) The Video Game Crash of 1983

(00:12:18) Nintendo's Revival Strategy

(00:15:23) The NES Era and Quality Control

(00:19:57) Modern Nintendo: Digital and Third-Party Ecosystem

(00:25:40) Nintendo's Focus on Younger Generations

(00:33:36) The Shift to a Recurring Revenue Model

(00:39:43) Revenue Model of Nintendo Switch

(00:40:11) Backward Compatibility and AI Enhancements

(00:41:59) Nintendo Switch Online: The Netflix of Games

(00:45:20) Nintendo's Business Model Transformation

(00:51:24) Digital vs. Physical Game Sales

(01:01:19) Nintendo's IP and Cinematic Universe

(01:08:53) Management and Shareholder Relations

(01:14:10) Risks and Future Outlook

(01:15:40) Key Lessons from Nintendo's Evolution