Things You Can Invest In: Nintendo Edition

Nintendo is one of the most popular video game companies in the world. It’s also one of the most recognizable brand names in the world, alongside Coca Cola and Microsoft.

The company was once an industry leader in home and handheld consoles and games. In recent years, however, companies like Sony and Microsoft started to sell more consoles and games than Nintendo. At the same time, mobile gamers moved away from Nintendo’s handheld game consoles, pouring time and billions of dollars into smartphone games instead.

For the longest time, Nintendo steadfastly refused to enter the mobile phone market and continued to focus on their core products. Now, the game company has one app and one licensed Pokemon game app (the ever-popular Pokemon Go) available for download on iOS and Android devices. They’ve also recently released their own internally developed game, Super Mario Run, to lukewarm sales and reviews.

Since Nintendo is expanding their business to mobile markets while staying in the video game business, investors have renewed faith in the game company and their stock is going up. Best of all, you can buy stock in Nintendo – but only if you want to.

For many years, Nintendo was the video game company to beat.

When they released the Wii U, however, interest in Nintendo products started to wane. People still bought Mario, Zelda, and Pokemon games, but console and game sales paled in comparison to PlayStation and Xbox.

Nintendo eventually released their Miitomo app for iOS and Android, and licensed Pokemon to Niantec for Pokemon Go.

Miitomo was popular when it first came out, but Pokemon Go remains one of the most popular mobile games in existence. Nintendo doesn’t make Pokemon Go (Niantec does), but they receive money from sales and the use of their characters. The popularity of the game, however, caused investors to renew their faith in Nintendo’s business due to the popularity of their characters and potential use for future mobile games. In response, their stock made huge gains and is worth well more than it was before Pokemon Go came out.

Nintendo recently released Super Mario Run, their first-ever internally developed smartphone game.

Unlike Pokemon Go, Super Mario Run is developed and sold by Nintendo. The game costs $9.99, and after Apple’s initial fees, all revenue goes to Nintendo. The company’s method of releasing the game confused users, who balked at the idea of paying $9.99 after downloading a free game, though eventually millions of people ponied up for the fee. It is not as successful as Pokemon Go, but it’s not a complete flop.

Nintendo just released their Switch console, which combines home and mobile gaming.

The console is intended to compete with Sony’s PlayStation 4 and Microsoft’s Xbox One with the added bonus of portability. It launched with only a handful of games (and no major Mario title other than a Mario Kart game), though the new Zelda game alone caused the system to sell out almost immediately. The company even doubled their production of the Switch to meet increased demand after selling 2.5 million consoles, a milestone and record for the company.

Nintendo’s stock has been performing well due to their recent surge in popularity.

Nintendo’s stock trades on OTC and international stock markets as NTDOY. Unfortunately, you can’t purchase their stock on our favorite app, Robinhood, though you should be able to buy them through pretty much any other brokerage. They’re currently trading at $29.15, over 5% more than the previous day.

Should you invest in Nintendo? That depends on how you feel about the company’s future. They’re likely going to sell oodles of Switch devices this year, and their offerings on iOS and Android devices will likely remain one of the most popular game titles for those platforms. They’re not selling as many consoles as Sony, and they’re not making billions off in-app transactions like Nonetheless, they’re diversifying their business and keeping up with the times, something that is making investors quite happy. If you strongly believe that Nintendo will succeed continue to succeed in the mobile and console markets, then investing in Nintendo might be right for you.