How Nintendo Wins by Playing It Smart

Nintendo's Switch 2 sold 3. 5 million units in just four days after its launch in June 2025. It's not the most powerful console out there, but that's not what Nintendo is about. They've always been about making the most out of what they have, and it's worked really well for them. For years, Nintendo has made a lot of money by not trying to keep up with the latest and greatest technology. Instead, they use older, cheaper tech and make it fun. This idea, called "lateral thinking with withered technology, " was started by Gunpei Yokoi, the creator of the Game Boy. It means using old tech in new, creative ways. A great example of this is the Wii. It used parts from the GameCube, which was much older than the technology used in the PlayStation 3. But the Wii had something different: motion controls. It was cheaper and had games that people loved. This made it a huge hit. Because Nintendo's consoles are cheap to make, they can sell them for less and still make a lot of money. In 2024, they made over $11. 5 billion in revenue and $3. 6 billion in profit. That's a lot of money, and it shows that using older tech can be a smart move. Nintendo also turns their limitations into something good. For example, the DS had two screens instead of a higher resolution. The Wii Remote made a low-power console into a fun gaming experience. The Switch combined handheld and TV play without needing 4K graphics. The Switch 2 continues this trend with backward compatibility, better Joy-Con haptics, and a 4K-capable dock. This approach has created a cycle where more people buy their consoles, which attracts more game developers, and more games keep people playing for years. This means Nintendo makes more money from each console they sell. Sometimes, investors don't understand Nintendo's strategy. They think that the latest technology is always the best, so they might not invest in Nintendo when their consoles seem outdated. But when Nintendo releases a new console with fun features, like the Switch 2, investors change their minds quickly. Nintendo also makes money from other things, like movies, toys, theme parks, and mobile apps. This adds to their revenue and makes them less dependent on console sales. So, what can we learn from Nintendo? Sometimes, the best technology isn't the newest technology. Companies that use older tech in smart ways can still make a lot of money. They can do this by creating fun experiences, building strong brands, and finding new ways to make money. Investors should look at a company's track record and see if they can make old tech new again. Nintendo has shown that fun and creativity can drive sales and profits, not just specs and power.