Nintendo's flywheel is not there. That is Simeon McMillan's call, and it is the one that has media longs emailing me. His case: Switch 2 is the best console launch in history and the attach rate still came in well below Switch 1, the Mario Kart bundle flattered even that number, Nintendo Switch Online accounts have been flat for years and almost nobody has noticed, and Nintendo just took its first mid-cycle price increase because memory costs are not coming down. He is not calling for a crash. He is saying you cannot put this one away for two years.
I push back hard. Ocarina of Time is going to be a top five selling game in the world and it is a remake, which is the old Buffett line about Disney being an oil well where the oil seeps back in. Simeon's answer is that Disney kept buying new IP to refill the well and Nintendo has not, and that two to three movies a year and a dozen parks would change his mind.
This podcast is sponsored by fiscal.ai
Fiscal.ai is the modern financial data provider. Through their web-based Terminal and AI connectors, Fiscal.ai provides real-time financial data, earnings call transcripts, filings, fund letters, and much more. It’s fast, intuitive, and has genuinely helped my research process. Check it out at fiscal.ai/yav for 15% off any of their paid plans.
Please follow the podcast on Spotify, iTunes, or YouTube! And please be sure to rate / review the podcast if you enjoy it, or share it with someone else who would enjoy it (more listeners is a critical part of the flywheel that keeps this Substack and podcast going!).
Transcript for paid subs begins below (The initial transcript is AI-generated and is replaced with a professionally edited version when available)
Disclaimer: Nothing on this podcast or on this blog is investing or financial advice; please see our full disclaimer here. The transcript below is from a third party transcription service; it’s entirely possible there are some errors in the transcript.