Nintendo Courts Non-gamers in ‘About-Turn’ Strategy

This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
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Nintendo Courts Non-gamers in ‘About-Turn’ Strategy

This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)

Once confined to rectangular screens, chirpy plumber Mario and pointy-eared Princess Zelda are popping up in theme parks and toy stores as Nintendo goes all out to win non-gamer fans.

It wasn't always this way: for many years, the Japanese company shied away from promoting products or creating media other than video games.

But its push for broader brand recognition over the past decade has reached the point where even Mario creator Shigeru Miyamoto describes Nintendo as something of a "talent agency" for its colorful characters.

A new area based on the "Donkey Kong" games was unveiled at the Universal Studios Japan amusement park on Tuesday, expanding Nintendo's zone there -- already a major tourist draw.

Its doors open on December 11, following last month's launch of the first ever Nintendo museum in a renovated factory in Kyoto.

At the box office, "The Super Mario Bros. Movie" was 2023's second-highest grossing title, with a sequel due in 2026 and a film based on Nintendo's "The Legend of Zelda" also on the way.

"Over the past decade, there has really been an about-turn" in Nintendo's strategy, said Florent Gorges, an expert on the company's history.

- 'Reclusive' -

The gaming giant started life in Japan's traditional former capital of Kyoto in 1889, producing playing cards.

For a long time, it took a "conservative" and "somewhat reclusive" approach to cashing in on its intellectual property, said Gorges.

"There was a certain culture of secrecy, taken to extremes within Nintendo, that made it very squeamish about trying new things," he told AFP.

Hiroshi Yamauchi, company president for over half a century between 1949 and 2002, "hated" the idea of any kind of company mascot, Gorges added.

An early foray outside of the gaming world also proved tricky.

In the 1990s, Nintendo entrusted its Mario IP to a Hollywood production team who made a live-action movie that was roundly panned.

The flop may have contributed to its cautious approach, until disappointing sales of the Nintendo 64 and GameCube consoles in the following decade forced a re-think.

- Wii success -

The two next consoles -- the portable DS with two screens, and the remote-controlled Wii -- were designed to attract non-gamers.

Each sold more than 100 million units and remain among Nintendo's biggest commercial hits.

But when updated versions of these two consoles did not perform so well, the company decided to again venture beyond video games.

Fast-forward to today, and Nintendo is "selling soft toys and sweets, allowing its characters into consumers' everyday lives", said Hideki Yasuda of Toyo Securities.

Nintendo is sometimes compared to Disney, but its business model differs from that of the US giant, which acquires and develops existing franchises, such as Star Wars, said Kensaku Namera of Nomura Securities.

Instead, the Japanese company "is focused on what it can do on its own", and so collaborates with external studios and creators for its films and other projects.

Going forward the firm may draw inspiration from the success of Pokemon, which began as a Nintendo game but now spans movies, playing cards, and a merchandise empire controlled by several entities.

That has "really pushed Nintendo to further exploit its franchises", Namera told AFP.

"Many children love Pikachu, and buy soft toys even if they have never played the game," he said, referring to Pokemon's famous electric mouse.

Game and console sales account for over 90 percent of Nintendo's revenues, so exposure to characters such as Mario or friendly dinosaur Yoshi could be "a trigger" to attract more people to consoles, Namera said.



Nintendo Hikes Switch 2 Annual Unit Sales Target

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
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Nintendo Hikes Switch 2 Annual Unit Sales Target

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP
While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business. GREG BAKER / AFP

Nintendo said Tuesday it aims to sell 19 million Switch 2 consoles within this financial year, up from its previous target 15 million for the smash-hit gadget.

The Switch 2 became the world's fastest-selling games console after launching in June to a frenzy of excitement from fans of "Super Mario" and other top titles, said AFP.

"The hardware has seen strong sales since its launch," Nintendo said as it raised its annual net profit forecast to 350 billion yen ($2.3 billion) from 300 billion yen.

Sales of the games "Mario Kart World" and "Donkey Kong Bananza" are growing steadily, the Japanese company said.

"We will aim to keep the momentum of released titles and continuously introduce new titles to expand the platform's user base," it added.

While Nintendo is diversifying into hit movies and theme parks, consoles remain at the core of its business.

The original Switch soared in popularity during the pandemic with games such as "Animal Crossing" striking a chord during long lockdowns worldwide.

The Switch 1 has sold 154 million units since its 2017 release, making it the third best-selling console of all time after Sony's PlayStation 2 and the Nintendo DS.

Nintendo said Tuesday it sold more than 10 million Switch 2 consoles in the first half of 2025-26.

For the April to September period the company logged net profit of nearly 200 billion yen, up 83 percent year-on-year, forecasting record annual sales of 2.25 trillion yen.

"The Switch 2's demand will likely remain high, especially as the console ramps up sales in non-traditional markets such as China," said Darang Candra, director for East Asia and Southeast Asia research at Niko Partners.

"We remain cautious, however, about whether Switch 2 can replicate Switch 1's 150-million-unit sales," he told AFP ahead of Tuesday's earnings release.

"Switch 2's long-term success will depend on Nintendo's ability to sustain engagement with new titles and also penetrate emerging markets" such as in the Middle East and Asian countries apart from Japan, Candra added.

Nintendo in September marked 40 years since the first "Super Mario Bros." game -- a colorful world of platforms, pipes and scowling enemies -- was released.

Market analysts at Jefferies noted that Nintendo's brand was about to receive a "significant boost" when the red-capped Mario character features as a balloon in the Macy's Thanksgiving Parade in New York City this year for the first time.

The sequel to the megahit "Super Mario Bros. Movie" is also scheduled for release in April 2026.


OpenAI, Amazon Strike $38 billion Agreement for ChatGPT Maker to Use AWS

The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
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OpenAI, Amazon Strike $38 billion Agreement for ChatGPT Maker to Use AWS

The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration
The ChatGPT app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration

Amazon.com will supply OpenAI with cloud computing services under a multi-year $38 billion deal, giving the ChatGPT maker access to hundreds of thousands of Nvidia graphics processors to train and run its artificial intelligence models.

The agreement announced on Monday underscores the AI industry's surging appetite for computing power, driven by the pursuit of technology capable of matching or surpassing human intelligence. It sent Amazon shares up 5% in premarket trading.

OpenAI will begin using Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond, Reuters reported.

The deal is among the first major moves by OpenAI since it completed a restructuring last week that frees the ChatGPT maker to move away from its nonprofit roots. Reuters has reported it was laying the groundwork for an initial public offering that could value the company at up to $1 trillion.

But surging valuations of AI companies and their massive spending commitments, which total more than $1 trillion for OpenAI, have raised fears that the AI boom is inflating into a bubble.


Microsoft Signs $9.7 Billion Contract with IREN for Nvidia Chips

A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
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Microsoft Signs $9.7 Billion Contract with IREN for Nvidia Chips

A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo
A Microsoft logo is seen on an office building in New York City in this July 28, 2015 file photo. REUTERS/Mike Segar//File Photo

Data center owner and operator IREN said on Monday it has signed a nearly $9.7 billion cloud services contract with Microsoft to provide the tech giant with access to Nvidia's GB300 processors over a five-year period.

The move is the latest attempt by Microsoft to boost AI and data center infrastructure at a time when AI demand is outstripping cloud capacity at Big Tech companies.

Shares of IREN surged about 18% in premarket trading after the announcement, with the company also entering into an agreement with Dell Technologies to purchase the chips and ancillary equipment for about $5.8 billion.

IREN expects the GB300 processors to be deployed in phases through 2026 at its 750-megawatt campus in Childress, Texas and said its contract with Microsoft includes a 20% prepayment.