Nintendo Doubles Down on IP to Power Switch 2 Growth

Nintendo is pulling out all the stops to support its latest console, the Switch 2, by expanding its beloved intellectual property far beyond traditional gaming.

Home to some of the most recognizable characters in entertainment — including Mario, Zelda and Pokémon — the Japanese gaming giant is accelerating its cross-media strategy. The company has invested heavily in movies, theme parks and merchandise to strengthen brand loyalty and draw new audiences into its gaming ecosystem.

The strategy gained momentum in recent years. Super Nintendo World debuted at Universal Studios in Osaka in 2021, immersing fans in the world of Mario. In 2023, The Super Mario Bros. Movie grossed over $1 billion globally, with a sequel already in development. A live-action Zelda film is also underway. Meanwhile, Nintendo-branded merchandise continues to expand globally, from apparel to collectibles.

Although IP-related revenue accounted for 54.5 billion yen (about $347.7 million) in the first nine months of Nintendo’s fiscal year starting March 2025 — just under 3% of total sales — executives view films and theme parks as strategic gateways rather than primary profit drivers. These initiatives serve to funnel consumers back into Nintendo’s core gaming products.

That approach helped extend the life of the original Switch, which launched in 2017 and ultimately became Nintendo’s best-selling console. The renewed popularity of Mario following the 2023 movie release provided a timely boost as the hardware aged.

Now, attention turns to the Switch 2, launched last June and already selling over 17 million units. The console’s early performance has been driven by flagship titles such as “Mario Kart World,” highlighting how recognizable franchises remain central to hardware sales.

Industry analysts note that nostalgia is a powerful asset for Nintendo. Having entered the home console market in the 1980s with the Famicom (known internationally as the NES), the company spans multiple gaming generations. Its characters evoke familiarity while remaining accessible to new players.

However, long-term success may hinge on innovation. While Zelda, Mario and Pokémon remain dominant, experts caution that overreliance on a handful of legacy franchises carries risk. Consumer tastes evolve, and sustaining growth over the next decade may require Nintendo to introduce new worlds and characters to complement its existing portfolio.

For now, Nintendo’s strategy is clear: use its vast IP library to build an interconnected entertainment ecosystem that keeps fans engaged across screens, parks and platforms — all feeding back into the Switch 2 and future consoles.