With Ryan O’Connor of Crossroad Capital and Todd Wenning of Ensemble Capital, I had the pleasure to take a deep dive into Nintendo.
Here you can find the transcript:
Here you can find the YouTube video
During our conversation we touched on the following points:
00:00 Welcome message and disclaimer
01:36 What both learned from each other on investing and Nintendo
11:24 Nintendo and the gaming market
19:18 The boom and bust cycle – still active?
27:22 Nintendo’s target groups
34:01 The hardware and software interaction
38:45 Creative use of hardware and software combined
46:01 Nintendo OS
54:56 Nintendo accounts
59:09 Switch online paid memberships
01:04:19 The change in buying Nintendo games
01:18:57 Nintendo’s pricing policy
01:28:51 Is the Switch profitable?
01:34:16 Selling in-game and selling software
01:38:50 Third-party games in the Nintendo ecosystem
01:42:21 (Buying) Engagement
01:46:49 Nintendo’s management
01:56:21 Nintendo’s flywheel
01:59:34 The revenue potential of the optionality’s in Nintendo’s business
02:05:23 The bear case