Nintendo (WKN: 864009) is active in game streaming. The management of the Japanese shares information about the number of users and sales in this segment quite sparingly. But recently there were at least 32 million subscribers to this offer. However, the value is now one year old.
Content, reach, sales, and retention rates are interesting insights and would also be extremely relevant with a deeper database. Perhaps more focus will eventually lead to deeper insights.
Another question is whether Nintendo has a limit on streaming games. It’s completely possible. But it is a limit that could be softened. Let’s take a look at the starting position and chances of the Japanese.
Nintendo: A natural limit, but opportunities to break!
In general, we can say that Nintendo’s limit is its own historical content. Finally, the Japanese publish their own classics from the NES, SNES and also the 1964 era through Switch Online. However, Gamecube, Wii, Gameboy or other formats could still be added. Even the Sega Megadrive has finally made it to the range.
However, the number of historically published old formats is limited. This means that, on the one hand, there may be a natural limit for Nintendo when it comes to publishing content on this platform. At least if you stay true to the previous scheme.
But this is a limitation that does not necessarily have to be so. Nintendo could, for example, start adapting its own content. F-Zero X has already done this by adding online multiplayer. In Super Mario 35 an original game was also adapted and modified to create a completely new game. This possibility of producing new content with old formats still exists.
So I don’t think there is a limit for Nintendo. Changing old content, a new edition, or a contemporary online update can create new game ideas with little effort. Furthermore, the management could also launch new and exclusive content with smaller investments to expand the range and reach.
Yes and no …
So if Nintendo sticks with the old games, there is a limit. However, if you put a little creativity and a small R&D budget into developing your own games, much more can happen. Old formats that are extremely popular can mean a completely new and more complex game idea or more exciting multiplayer through online integration.
These are still the possibilities that Nintendo management should develop. For me it is wrong to speak of a limit under this premise.
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Vincent owns shares of Nintendo. The Motley Fool recommends Nintendo.
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