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Nintendo could grow revenues by $2.5 billion from IAPs and subscriptions, says Newzoo

Nintendo could grow revenues by $2.5 billion from IAPs and subscriptions, says Newzoo

Nintendo should be able to grow its software revenues by $2.5 billion if it can unlock the value of its currently untapped revenue sources, according to Newzoo.

The market research firm has released a report studying Nintendo's performance, and which areas it needs to improve in order to grow revenues across its software offerings.

For its mobile games, Newzoo suggested that Nintendo has yet to work out its strategy. It pointed to Super Mario Run, which was not planned to have updates but eventually received several and has struggled to monetise despite huge download numbers.

Fire Emblem Heroes, however, has so far generated 80% of the company's mobile revenues. This is thanks to its adoption of traditional free-to-play monetisation, something which Nintendo is apparently hesitant about.

Money on the table

The developer is now developing Mario Kart Tour, which, if properly designed, could be a $1 billion franchise. Newzoo has come to this conclusion due to the success of Switch games Super Mario Odyssey and Mario Kart 8 Deluxe, which are currently the top selling games on the console.

Elsewhere, Nintendo has yet to fully invest in IAPs on its Switch games, particularly for its first-party games. Its Switch Online offering will also be much cheaper than other online console services, which will likely leave a large amount of money on the table.

Nintendo has seen impressive growth recently, with revenues growing 175.5 per cent in its Q3 FY17 financials to $7.88 billion. It has nearly sold 15 million units of its Switch console worldwide.


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A footy game fanatic and experienced editor of numerous computing and game titles, lively Chris is up for anything - including running Steel Media! (Madman!)

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