How Nintendo Can Be More Like Disney

Nintendo (OTC: NTDOY), maker of the Switch video game console, has recently started to invest in other forms of entertainment for its flagship characters and stories. Like Disney (NYSE: DIS) has done with Marvel and Star Wars, Nintendo is building theme parks, creating mobile games, and partnering on video content for its Mario, Zelda, and Donkey Kong franchises. By branching out into new business lines, the company may be able to flatten out the feast-or-famine fluctuations of its main console business.

Consoles alone can't carry Nintendo's future. Image source: Getty Images.

As of right now, the majority of Nintendo's revenue is related to the Switch console. Last quarter, 96% of its revenue came from the Switch and associated games. The Switch is a massive hit and has been the No. 1 console in the U.S. for 22 months, but it can be risky if a company relies on one product to succeed, especially if it is hardware-based.

Source Fool.com