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Upcoming movie releases are rarely announced two years in advance. But a Nintendo film based on the Super Mario Bros video game characters is a big enough deal to warrant early notice.
The movie is being developed by the Japanese games company and US animation studio Illumination and will be released on April 3 2026. It follows the breakaway success of last year’s The Super Mario Bros Movie.
Anticipation is all very well. But Nintendo, like the plumbers Mario and Luigi, needs to move a lot faster if it is to develop new revenue streams to complement its cyclical console business. The first Super Mario movie reportedly took a decade’s worth of internal discussions to make a reality.
True, Nintendo’s conservative approach is rooted in strong performance in its hardware business: consoles and games account for more than 90 per cent of group sales.
But times are changing. Investors have long fretted about the ups and downs that come from the sector’s console release pattern, as well as fierce competition from console rivals Microsoft and Sony.
These concerns gained fresh urgency after Xbox maker Microsoft revealed a new focus on cloud-based gaming last month, with plans to release what would previously have been exclusively Xbox games for use on rival platforms. The radical break from tradition signals a shifting outlook for the sector and a greater need to be prepared for changes in gamer demands.
There is much for Nintendo to gain by releasing more movies. Global ticket sales from The Super Mario Bros Movie hit $1.4bn. Given Nintendo’s global fan base for its game characters, the success should not have been such a surprise. Film-related revenue helped nearly double Nintendo’s sales from mobile and IP-related business in the nine months to December. Game sales also rose following the movie’s success.
Nintendo shares are up 60 per cent in the past year. At 30 times forward earnings, Nintendo trades at a premium to global gaming rivals. There is potential for further growth as more of its arsenal of valuable intellectual property is used for future films. Demand for Nintendo merchandise and toys is high among young fans around the world.
The good news is that Nintendo’s console sales remain strong. This is the moment to be adventurous with new businesses. The company has the opportunity to experiment.
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