{"id":82476,"date":"2023-11-09T07:05:55","date_gmt":"2023-11-09T12:05:55","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/why-nintendos-zelda-movie-is-a-game-changer\/"},"modified":"2023-11-09T07:06:01","modified_gmt":"2023-11-09T12:06:01","slug":"why-nintendos-zelda-movie-is-a-game-changer","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=82476","title":{"rendered":"Why Nintendo’s Zelda Movie Is a Game Changer"},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

This article is from the free weekly Barron\u2019s Tech email newsletter. Sign up\u00a0here\u00a0to get it delivered directly to your inbox.<\/em><\/p>\n

The New Disney<\/strong>.
\n Nintendo
\n is finally transforming itself from a simple videogame maker to a dominant entertainment conglomerate.<\/p>\n

The Japanese company\u2019s success is becoming evident on multiple fronts\u2014from game sales to theme parks and movie adaptations.<\/p>\n

\n

On Tuesday,
\n Nintendo
\n (ticker: NTDOY) reported solid profit growth for the first half of its fiscal year and gave a better-than-expected outlook thanks to robust game sales from its latest Mario<\/em> and Zelda<\/em> releases. Nintendo raised its fiscal 2024 net profit guidance to 420 billion yen from 340 billion yen. It also increased its forecast for software units to 185 million from 180 million.<\/p>\n

But the positive financial results were only part of the story. Later in the day, Nintendo announced that it\u2019s developing a live-action movie based on its hit videogame franchise, The Legend of Zelda<\/em>. The film will be co-financed by Nintendo and
\n Sony
\n Pictures Entertainment, with
\n Sony
\n (SONY) handling the movie\u2019s distribution.<\/p>\n

\u201cBy getting deeply involved in the movie production to put smiles on everyone\u2019s faces through entertainment, Nintendo will continue its efforts to produce unique entertainment and deliver it to as many people as possible,\u201d the company said a news release.<\/p>\n

There\u2019s already enormous enthusiasm for the project. Nintendo\u2019s first social media post<\/a> about the Zelda movie, written by its famed game creator Shigeru Miyamoto, has already been viewed over 24 million times.<\/p>\n

The main response from fans was joy and relief. For years, gamers had lamented how Nintendo wasn\u2019t fully using its roster of beloved videogame characters, including Mario, Luigi, Donkey Kong, Peach, Zelda, and Kirby. Now, it\u2019s clear the company is finally ready to embrace the characters beyond just the videogame console.<\/p>\n

There are reasons to be optimistic. April\u2019s release of The Super Mario Bros. Movie<\/em> had positive effects across Nintendo\u2019s business. It generated over $1.3 billion at the box office, making it the second most successful animated film in history. Some 170 million people saw the film in the theater, with countless more still watching at home.<\/p>\n

One widely shared video<\/a> on social media shows a crowd of first-graders passionately singing one of the movie\u2019s main songs. The film has helped a new generation develop a love for Nintendo\u2019s characters that\u2019s likely to last a lifetime, the kind of loyalty Walt
\n Disney
\n (DIS) is known for.<\/p>\n

According to Nintendo, the film has led to increased sales of Mario<\/em> games too. Five older Mario<\/em> titles sold more than one million units in the six months that ended in September, with aggregate sales up more than 30% versus the prior year. The company also said its latest Super Mario Bros. Wonder<\/em> game, released in October, sold 4.3 million units in its first two weeks, making it the fastest-selling Super Mario<\/em>-related title ever.<\/p>\n

The coming Zelda<\/em> film will likely be another blockbuster and represents a confirmation that Nintendo is ready to branch out.<\/p>\n

\u201cBig box office success of Super Mario Bros. Movie<\/em> appears to have boosted Nintendo\u2019s confidence to expand its offering,\u201d Jefferies analyst Atul Goyal said in a note to clients. \u201cThis is a significant event that could have a major impact on the future of both Nintendo and Sony Pictures.\u201d<\/p>\n

Barron\u2019s<\/em>\u00a0recommended Nintendo stock in May, noting the untapped potential from the company\u2019s valuable intellectual property, along with the eventual launch of a successor to the Switch console. That new console should drive another wave of strong financial results. New films, should be a tailwind to sales that wasn\u2019t there for the Wii, Switch, and prior Nintendo consoles. <\/p>\n

Meanwhile, this week Nintendo reiterated its plans to expand its theme park initiatives. It opened Super Nintendo World at Universal Studios Hollywood earlier this year, with two more theme parks already planned for Orlando and Singapore.<\/p>\n

Nintendo\u2019s recent success shows the enduring power of its franchises. Following earnings and the Zelda movie announcement, the company\u2019s stock surged 6% overnight in Japan, to a new high for the year.<\/p>\n

The good news for investors is Nintendo\u2019s latest ascent is likely just beginning.<\/p>\n

This Week in Barron\u2019s Tech<\/h2>\n

Write to Tae Kim at tae.kim@barrons.com or follow him on X at @firstadopter<\/a>.<\/p>\n<\/p><\/div>\n<\/div>\n