David Rosenthal: belief

Transcript context

…Yeah. What is the end game? Is the end game to get people to fall in love with the characters all over again on a continuous basis so that then they go buy more Switch games and Switch 2 stuff? I think yes with the additional nuance that I'm no brand IP strategist here, but I think the additional goal is generational management that, frankly, the Pokemon company has done so well. Every year is a new cohort of children in the world who can and should be brought into the Nintendo fold. Pokemon has done this so well. You and I played it growing up, and kids today play it growing up equally, if not more passionately. I think once you start moving into across generations like that, you really do need a broad multimedia IP strategy to make sure that you're engaging and bringing the new generations into the fold. I think that's right. The better comp is probably the NFL than Disney. Originally, I was like, oh, they're running the Disney playbook. But Disney takes on all of the in-house work of operating their own theme parks and having all their own employees and needing to have that core competency. Also, Disney has hundreds of stores. Nintendo has, I think, two stores. They don't have physical touchpoints with consumers as much as in part one. We talked about World of Nintendo in the stores to sell the games. It's so different than the actual boots on the ground stuff that Disney has that makes up the Disney flywheel. In our old Disney+ episode, we talked about how $1 on a Disney movie in revenue equals $2 in parks and merch. The way that Nintendo is structured, where they've decided they want to make great hardware to play games, they want to make games, and they want to not do anything else because that's all not very Nintendo, that's a different strategy where all of this other stuff is brand building, and it might make some money. NFL films was breakeven, so it's probably one click away from NFL films, but it's certainly not the Disney flywheel.…

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