Latest / Building Brands with Fexingo: Identity, Reputation, and Long-Term Business Equity / How Nintendo Built a Brand on Playful Innovation
Transcript
- Lucas: So, Nintendo just reported another quarter where the Switch outsold every other console on the market, even though the hardware is now pushing nine years old. That's not just a product story, that's a brand story. Luna: It's kind of remarkable when you think about it. Most tech products have a two-year life cycle, and here's a console that's basically ancient in gaming terms, still moving units. Lucas: Right. And the Switch is actually a perfect case study for how Nintendo has always operated. They don't compete on raw power. They compete on the experience, on the playfulness, on the brand promise that you're going to have fun. That's been the core since the Game Boy. Luna: The Game Boy, though, was wildly underpowered even when it launched in 1989. The Sega Game Gear had a color screen and better specs, but the Game Boy still crushed it. Lucas: Exactly. And that's the lesson. Nintendo's brand has never been about the hardware specs. It's about the software, the characters, the sense of joy. The Game Boy had Tetris, and that was enough. It was simple, it was portable, it was fun. That brand promise has stayed remarkably consistent for almost four decades. Luna: And they've done it by what they call 'lateral thinking with withered technology.' Can you unpack that a bit? Lucas: Yeah, that's a phrase from the late Gunpei Yokoi, the guy behind the Game Boy. The idea is you take old, cheap, well-understood technology and you apply creative game design to make it feel fresh. Instead of chasing the cutting edge, you find a new way to play. That's the opposite of what Sony and Microsoft have done with their consoles. Luna: So it's not about the tech, it's about the interaction. The Switch is a perfect example: a tablet with a screen and detachable controllers. Nothing revolutionary, but the hybrid design changed where and how you play. Lucas: And that's why the Switch has become one of the best-selling consoles of all time. It hit that sweet spot of portability and home play, and it's backed by a library of first-party titles that are essentially system sellers. Mario, Zelda, Animal Crossing—those are brands within the brand. Luna: I think that's a key point. Nintendo's characters are like their own mini-brands. Mario alone is probably worth billions. People don't buy a Switch for the hardware, they buy it to play the new Zelda. Lucas: Absolutely. And that's the moat. Nintendo's brand equity is so deep that they can charge a premium for hardware that's often less powerful than the competition. The Switch launched at $300, the same price as the Xbox One S, but it didn't have 4K or a Blu-ray player. Yet people lined up because they trusted the Nintendo seal of quality. Luna: That trust is built over decades. I mean, you have grandparents who grew up with Mario, parents who grew up with Mario, and now kids are playing Mario. It's a multi-generational brand. Lucas: And they've been careful to protect that trust. They're famously protective of their IP. They don't license Mario out to just anyone. That's why the Mario movie with Universal worked so well—they controlled the creative direction and the marketing. Luna: The Super Mario Bros. Movie grossed over a billion dollars. That's not just a movie, that's a brand extension that reinforces the original brand. It makes people want to play the games again. Lucas: And then you have Nintendo World at Universal Studios. That's another touchpoint that deepens the emotional connection. You're not just playing the games, you're stepping into the world. It's a brilliant brand ecosystem play. Luna: But they've also had missteps. The Wii U was a flop. How did that not damage the brand? Lucas: That's a great question. The Wii U was confusing, the name was bad, and it had almost no third-party support. But Nintendo's brand was resilient enough to absorb that failure. They didn't panic and pivot to mobile or abandon hardware. They took their time, came out with the Switch, and reminded everyone why they love Nintendo. Luna: So the brand is bigger than any single product. That's the real takeaway. Lucas: Exactly. And it's something a lot of companies struggle with. They build a brand around a product, not around a value. Nintendo's value is play. It's joy. It's accessibility. That's why they can make a console that's underpowered and still sell it at a premium. Luna: I think that's also why they've resisted the trend toward microtransactions and pay to win. They could easily monetize Mario Kart with loot boxes, but they haven't. That restraint is part of the brand promise. Lucas: Right. They know that if they betray that trust, the brand equity erodes. And that's something that's hard to rebuild. Just ask any company that's tried to come back from a brand crisis. Nintendo's consistency is their superpower. Luna: And they stay consistent even as the industry goes through massive changes. Subscription services, cloud gaming, VR—Nintendo just does its own thing. Lucas: Yeah, they're famously uninterested in trends. They didn't even have a proper online service until the Switch, and it's still pretty basic. But that's fine because the core experience is so strong. People don't buy Nintendo for the online features; they buy it for the games. Luna: So if I'm a brand manager listening to this, what's the one thing I should take away? Lucas: I'd say it's this: define a clear, timeless value—like play—and let that guide every decision, even if it means ignoring what the competition is doing. Don't get distracted by the latest tech or trend if it doesn't serve that core promise. Luna: That's a good lesson. And it's one that's easy to say but hard to do, especially when shareholders are demanding growth. Nintendo's patience is really rare. Lucas: It is. And honestly, it's something we should all keep in mind when we're building our own brands, whether it's a company or a personal brand. The principles are the same. Luna: Yeah. And you know, if today's episode moved your thinking forward in some small way, and you want to help keep the show ad-free, there's a link to support us at buy me a coffee dot com slash fexingo. It's the smallest ask, but it makes a real difference. Lucas: Thanks for that, Luna. And I'd second that. It's listeners like you who keep these conversations going. But back to Nintendo—one more thing that stands out is how they've managed to stay relevant across generations. They don't just rely on nostalgia; they reinvent their characters. Look at Zelda: Breath of the Wild completely reimagined the franchise, and it was a massive hit. Luna: And Mario Odyssey did the same for Mario. They keep the core identity but evolve the gameplay. That's why they don't feel stale. Lucas: Exactly. So the brand remains fresh and relevant. And that's the challenge for any long-term brand: how do you stay true to your roots while also moving forward? Nintendo's answer is to focus on the player's experience, not the technology. Luna: It's also worth noting that Nintendo is very selective about partnerships. They didn't jump into mobile until 2016, and even then, they only did a few collaborations. They're not going to dilute the brand for short-term gains. Lucas: Right. And that selectivity extends to their licensing. You don't see Mario on every piece of merchandise. They curb the supply to maintain the perceived value. It's a classic scarcity play, but it's done with such restraint that it feels authentic. Luna: So what's next for Nintendo? We're in August 2026, and there's been talk of a Switch successor. How does that fit into the brand strategy? Lucas: I think they'll take their time. They're not going to rush out a new console just because the Switch is aging. They'll wait until they have a clear vision that fits the brand promise. And when they do launch it, you can bet it'll be a carefully crafted experience that feels unmistakably Nintendo. Luna: And that's the beauty of having a strong brand. You can move at your own pace and your customers will wait. Lucas: Yeah. It's a lesson in patience and confidence. And I think it's why Nintendo remains one of the most admired brands in the world. They've built something that's more than just a product—it's a feeling. Luna: And that feeling is what keeps people coming back, generation after generation. It's a pretty powerful thing. Lucas: It is. So the next time you see a child pick up a Joy-Con and laugh, remember that's not just a kid playing a game. That's the payoff of a brand built on play.