About this Video

• Video Title: Beyond The Switch 2: Nintendo’s Plan To Become More Like Disney
• Channel: CNBC
• Speakers: Multiple CNBC anchors and Nintendo representatives. Specific names are not provided in the transcript.
• Duration: 15:14

Introduction

This CNBC video discusses Nintendo's new Switch 2 console, analyzing its potential success and Nintendo's broader strategy to expand beyond gaming, mirroring Disney's diversified entertainment model. The video examines Nintendo's history, the Switch's impact, and the company's plans for future growth in movies, theme parks, and other ventures.

Key Takeaways

• The Switch's phenomenal success: The original Nintendo Switch significantly outperformed previous consoles in its first year, merging the console and handheld markets.
• Learning from past mistakes (Wii U): The Wii U's failure taught Nintendo valuable lessons, leading to a more iterative approach with the Switch 2.
• Switch 2's iterative design and higher price point: The Switch 2 builds upon the original's success with upgrades but faces a higher price point ($450) than its predecessor.
• Expansion beyond gaming: Nintendo is actively expanding into movies, theme parks, and other ventures, diversifying its revenue streams and brand presence, similar to Disney's business model.
• Nintendo's strong IP and brand recognition: Nintendo possesses immensely popular and beloved IPs (Mario, Zelda, Pokémon, etc.) which are key to their diversification strategy and future success.

1. The transcript attributes the Wii U's failure to it being "really hard to play and disorienting," leading to negative gamer reception and a lack of third-party support.

2. The Switch 2 features a larger screen, better performance, and improved Joy-Cons. The transcript also mentions enhanced CPU and GPU processing power enabling deeper game development.

3. Nintendo's expansion beyond video games, as detailed in the transcript, includes opening theme parks (Super Nintendo World), releasing movies (the Super Mario Bros. Movie and an upcoming Legend of Zelda movie), and launching apps (like the Nintendo Music app).

4. Nintendo does not aim to establish a benchmark for pricing, instead determining prices on a case-by-case basis based on each game's experience. Third-party developers have the autonomy to set their own prices based on the gameplay experience they offer.