David Rosenthal: belief

Transcript context

…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. I think the NFL and NFL films is the exact analogy. I think the mobile games strategy within Nintendo is don't lose money, but extend the IP. They're not trying to build it into a revenue driver. In other words, they're willing to give away margin dollars to not have to be in those businesses, but accomplish the same touch points with customers.…

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