A year ago, the reveal of Nintendo Switch helped swell Nintendo's market value by a staggering $1 billion, and now, mere months before the release of Nintendo Labo, the Japanese firm's worth has shot up by another 2.4%. That might not sound like a big percentage, until you realise that translates into a tasty $1.4 billion, closing out its market performance on a seven-week high.
As we know, Labo's reveal has seen Twitter and the internet frothing with takes of various temperatures, but that clearly hasn't stopped the economic impact from playing firmly into Nintendo's favour. In a report by the Financial Times, financial analyst David Gibson (of investment firm Macquarie) reacts positively to Ninty's divisive cardboard creations, saying: "This is exactly the kind of crazy idea that Nintendo are known for which we believe will help expand the company’s audience." He made the prediction that Nintendo Labo would initially sell somewhere between 1m and 2m units - which is around $45m-$90m in operating profits.
Do you think Nintendo Labo will do that well when it arrives on 20th April? We're certainly excited for its arrival in April, but how do you feel about this impressive influence on Nintendo's value?
[source ft.com]
Comments 99
I'm not surprised, this is going to make Nintendo millions, also Switch sells will continue to skyrocket. It's possible that the Nintendo Switch could out sell the legendary PS2.
It’s a bit overpriced but I think Nintendo’s done it again. This will sell like hot cakes and we all know it will.
Hahaha, oh man, this is marvelous. All these people complaining and Nintendo is gonna laugh all the way to the bank.
That's some nice cardboard.
Fiancé and I are buying day one. We tend to have lots of “recreational” activities that only Nintendo can entertain.
It folds money!
A crafty move on Nintendo's part.
That's a conservative guess if you ask me. It might easily cross 2 mil if there's enough Switches out
Not only can Nintendo think outside the box, but they also thought of a way of selling it!
That should shut some people up
One thing I don't get. They can barely keep up with demand from adult gamers. How on Earth are they going to accommodate demand from such a mainstream audience ASWELL!!! (Assuming this is aimed not only at Switch owners, but also to encourage people to buy a Switch that's more than a 'dumb game console'. I mean, if they can, then Switch is going to out perform the Wii, with the added bonus of not forgetting their fans.
2016 Sony: We made a really powerful console!
2017 Microsoft: We made an even more powerful console!
2018 Nintendo: We made some weird toys out of cardboard!
@SimplyCinnamon53 why, exactly?
Are you the same kind of person that is in here bashing analysts when they aren't so high on Nintendo?
Funny how when they don't have good things to say, everyone around here acts like these people don't know what they're talking about.
It’ll sell very well initially, but I imagine it’ll be a fad that dies out quickly, especially when people start accidentally tearing and crushing their new $80 cardboard toys and can’t get replacements. Just watch; stories and scenarios in which people accidentally destroy their brand new Labo sets will become memetic and viral (much like Wii remotes busting TVs). I love the idea in principle, but the price point is a bit steep.
I wait with interest to see how it does. I don't think it'll be ultimately successful but we'll see. I think the Japanese might buy into it as they're a whacky lot.
@gatorboi352 I didn’t mean towards analysts I meant towards people who thought this was a dumb idea. It’s for kids and it’s going to make them a lot of money. It was a good idea.
@thesilverbrick
I agree. I reckon it will sell well at the start, with the hype, but I think it has 'short-lived fad' written all over it (literally, if you've got a pen!) Not that that's a criticism. I just think that's the likely outcome for something like this.
@thesilverbrick sounds sort of like the initial Switch reaction I saw around the web, not gonna lie.
@thesilverbrick you can make your own replacement parts. I think that is the reason why this might be a lasting thing. I think this might become a great concept kind of like lego if executed well. I foresee software that will let you create your own ideas and interactive toys with simple drag and drop programming utilising the sensors and actuators in the controllers. The possibilities are endless.
@-Green- Except the Switch isn’t made out of the same material as a pizza box.
So roughly 2 million children will be disappointed after they accidently sat on their stupid piece of crap
I'm still skeptical. Retailers will buy initial shipments so it definitely won't be dead in the water, but translating that in to sales to end users might be hard. They need to take a brand new approach to marketing these. They can't rely on their normal channel. I think the initial price point is a little staggering too. I was all set to talk the mrs. In to buying these until I saw the price tag.
@Mortenb You can make your own parts in theory, but the average consumer doesn’t have the engineering know-how to make adequate or comparable replacement parts easily.
@thesilverbrick obvious difference/distinctions, but roughly the same critiques I recall.
@-Green- Not from me. I was cautiously optimistic.
To piggyback on my last comment - we might not be the target audience like some other parents because we don't buy our kids $900 phones and $500 tablets. These are change compared to what some crazy parents buy their kids.
This is about as great as my pet rock that was sold in the 80's -_-
It has Nintendo's name on it, it will sell, even if it is just....cardboard...
@thesilverbrick nintendo has already stated that they will offer replacements for damaged pieces. On a side note: both sku’s are outselling monster hunter world on the us amazon site.
@faint Did you read the update on that article? Nintendo of France misspoke.
@SimplyCinnamon53 - Didn't you know? Anti-Nintendo comments hold just as much weight and substance as analysts.
@thesilverbrick You only need cardboard and scissors and folding abilities. I can’t imagine anything that could be simpler. There will apparently also be directions and blueprints for download if I understand correctly. I think any normal six year old should be able to do a good enough job of it given a bit of help and a few tries. It’s probably more difficult to put the parts together than to make new parts.
@gatorboi352
"Analysts" who claimed the Switch would sell <5 million per year or 30+ million per year are equally foolish.
If you think about it LEGO is expensive and sells loads. This is just one demographic. And there are millions of Switch owners who have children.
@thesilverbrick nintendo of France said you could get the replacements for free. I didn’t say that. You will be able to get replacement parts just not free.
This is like when SONY stock shot up 2.4% when they announced PSVR "revolution" would be 399. Didn't buy that either.
Anyone who thinks this won't sell well is completely out of touch. I think this is the thing that could really see Switch move some units in the UK
The great thing about Labo is that even if it flops like some claim it will, Nintendo wont lose out on much and the Switch itself remains unaffected.
I think this will either sell loads or become dusty on store shelfs. I hope it sells well personally, it's a cool idea
http://nintendoenthusiast.com/blog/2016/10/24/heres-what-analysts-thought-of-the-wii-u-before-it-launched/
Interesting concept but no replay value
@faint And knowing Nintendo, those replacements will not come cheap, despite being made of the cheapest possible material.
@SimplyCinnamon53 "it’s going to make them a lot of money. It was a good idea."
How are you reaching this conclusion?
@Mortenb ...And the exact patterns, a way to print them large enough, a reliable method to transfer them onto your selected material and the ability to cut them out with laser precision so everything goes together correctly. Again, it’s possible and craftier types will be able to do this with ease, but not everyone is as engineering savvy as you give them credit for.
@JohnBlackstar Labo has "fad" written all over it. Think: Wii accessories.
Initially, everyone will gobble this stuff up, probably over purchase, even. But after the hype/new phase wears down, these things will sit half constructed and/or damaged piled up in the corner of closets and rooms to rot.
It will be similar to Rock Band/Guitar Hero but not as mainstream or successful.
@1UP_MARIO bingo.
What I want to know is, are they going to make a special "Switch: Labo Edition"? Where the entire box and inner packaging can be transformed into a Toy-Con so nothing goes to waste?
If it will sell really well,this could happen again:
@oycomics That should be mandatory for all boxes of products aimed at kids,aside from the very cheap ones,there would be so much less trash.
Somehow I believe what could make or break this is the ratio between parents who want to inspire and interact with their children and those just looking to find something to keep them quiet whilst they pour another glass of cheap gin.
The latter is about my only major sour point with traditional video games.
I'm a adult & I'm looking forward to getting this! Also it's a lesson in working together to create something with my sons - hopefully I can get a ticket to the UK event and can get 'hands on' with creative building.
Plus I'm sure the instructions are easier than Ikea's.
I'm buzzing like an auld fridge. Can't wait
@thesilverbrick this isnt rocket science. Duct tape and and a piece of cardboard isn't out of reach for most people. It actually might be the reason why this will last a very long time., easy to repair and customize.
I have to admit if I had the room and if it would work on an adult the giant robot one is appealing.
@NateM94 Well, it releasing on 4-20 is just the sweet sweet icing on the cake.
....mmmmm......cake....
Anyone who feels threatened by some cardboard toys can check their... I don't know. I don't know what they're supposed to check. I wanted to write something really sassy here but couldn't think of anything. But they should probably check it, whatever it is. The toys look great. Don't want the toys? Don't buy the toys. Go play Dark Souls. And all the other games. But get over the fact the same system can now apparently morph into a cut-out piano.
As expected. This is a lucrative space Labo slots into. Nintendo is going to make a nice profit on this. I really need to buy some stock.
@gatorboi352 1. Read the title they are already worth 1.4 billion more. 2. How much money do you think it takes to make simple software and print cardboard in bulk? Not that much. 3. They wouldn’t have to sell a lot to start making money
If it performs as well as it looks, it’ll sell way more than that.
To me it looks ridiculous but Nintendo can’t lose on this so good for them.
@Randomname19
I have NO Respect with Sony anymore, despite i will buy PS4 for The Sims 4 because i have no choice.
Sony now = Copycater of Nintendo.
I said last night that their value would good up. Not that anyone without any shares in the company will care THAT MUCH... I guess a lot of people here must have stock/shares in the company (or know someone that do) from the sheer joy at this news.
@gatorboi352 Would you say it’s a big problem if it’s just a brief fad? Something temporarily super popular before the world moves on. That seems like a perfectly fine proposition to me. I think that Labo will have a market for maybe a year or two then it will phase out. It will make Nintendo some money while it’s popular, help sell switches increasing its user base, which in turn will encourage other developers. Best of all when the toy cons are no longer wanted they can be recycled rather than going to landfill. a fun chapter for those that are interested. I can’t see a problem with this.
Whatever keeps them afloat and making games I’m happy with!
@gatorboi352 it has already made a lot of money.
People, you're not realising, Nintendo have said they are not providing free templates for those that want to try to be McGuyver. It's not just the cardboard, this looks like the stuff used in previously released products. This isn't a case of going down to your local Aldi and swiping the nearest empty box and taking a Stanley knife to it. Plus there's the other bits and bobs, like twine, reflective panels, fishing rod eyes, etc. Like lets deal with just the fishing rod eyes, they've a finished edge in the Labo products, they won't in would be DIY'ers.
I could be wrong but when you look at American Collector's Editions and their packaging, which I've done in the past, their outer packaging is rubbish, I don't know about the innards. I think this Labo could be made from their usual typical rugged European packaging. Having said that, it's cardboard so it's not really that tough.
The naysayers are seeing cardboard and automatically think "flimsy" because it's cheap. But this isn't the same as a pizza box. The large flap of a pizza box is flimsy, but most of these toys use boards about the width of a pizza box's SIDE or smaller, which is much sturdier. I think the durability will be just fine, as long as you don't get it wet. (or feed it after midnight)
@GrailUK how did the Wii forget Nintendo core audience? Nintendo not only put out Wii sports/fit for casuals, but 2 zelda games, 3 mario, donkey Kong, 2 metroid, Kirby, smash, kart, and you know I can continue. The one thing Nintendo doesn’t forget its its core audience. And switch isn’t even a year old. Can you imagine 4 more years of games?
I'm no analyst. I have no friggen idea if this venture will be successful or not.
But I'm interested.
Been looking a while now for some good STEM toys for my niece. I've hesitated on Legos because the one mini set she had, she got frustrated with. She loves 1-2 Switch but that's more of a party game. The LAGO mini games look just as interactive and like something she can be entertained with on her own (with supervision ofc).
Loot boxes, boo. Cardboard boxes, yay...ha
@RazumikhinPG Yeah, that's all well and good, but the general reception was not nearly as rosy as those cherry-picked predictions. Nintendo stock fell 10% in the two days after they unveiled the WiiU, to its lowest point since 2006.
I think Labo will sell really well. Think about it. Switch is selling well with adults. Many of these adults have small children. Labo seems like a really fun way to spend an afternoon with your kids doing something constructive and educational.
This is so left field, even for Nintendo, it's hard to predict how it will sell. I think a million units globally would be really high however. But financial analysts in my experience love this kind of novelty DIY stuff. If enough parents want to encourage their children to be more creative, and if Nintendo markets it well enough, I could see it hitting those numbers.
But I wont be surprised if it does not.
Nintendo should release a packaged deal with the system where the box of the system itself can be used for Labo. The box already has tons of spare cardboard in it, it seems like a perfect package deal.
@thesilverbrick probably they won’t be cheap, though I’m not sure about that.
People keep saying that it’s overpriced because it just cheap cardboard. They’re so wrong. It happens constantly in the creative world (and I know because it’s my job). People are very quick and deliberately willing to forget that that “cheap cardboard” required the hard work of graphic designers and engineers that took a great deal of time into designing and creating a compelling product. But, you know? It’s just dirty cheap cardboard, right? So who cares about the effort it was put into it, it’s just cardboard.
If they make a Samus Edition Labo suit for Metroid Prime 4 I would be so happy.
People are ignoring two aspects of this:
1/ the core of this is software - not cardboard. We'll have to see how well the software is written, how much depth there is to it - and what activities there are to perform with it.
2/ this isn't a product - this is a genre. There are going to be multiple products, based on multiple ideas - each of which has unique software.
There is nothing stopping people gluing this to wood or plastic and making it stronger - nor people hooking it into other systems.
From Nintendo's perspective, this adds value to their software. It's not like Wii play, where a bunch of mini games was sold for low value - this is taking a simple piece of software and adding value. It's just what they like.
@Snakesglowcaps Wii Fit was also overpriced ($100) and it sold 44.5 million copies (22 million for Wii Fit and 22 Million for Wii Fit Plus).
I agree this is overpriced (although with the amount we currently know that's just a guess), even if you call it $60 for the software and $20 for the cardboard, but that doesn't mean it won't sell like CRAZY! And that doesn't mean it won't continue to push Switch sales like CRAZY
2M units may be $90-100M in revenue, but their margin is probably around 10%, so ~$10M per year. It’ll only take 140 years to see that $1.4B value realised!
I still think Labo is going to be a massive success, just not $1.4B massive
@Fred13 haha I agree with you. I think everything is overpriced, I live in Canada it is overpriced. But what do you mean by “just a guess”? The pricing structure has been confirmed has it not?
It would be really funny if this became Nintendo's next focus, if only because it's selling like crazy. I can see the Switch become a portable Wii at that point
@Snakesglowcaps Yes, I know exactly what it will cost. I even know that with my Best Buy Gamer's club unlocked it'll be $56 & $64. What we don't know is how good the software is. Is the piano one just enough coding to play the notes as I push them, or are there awesome games that teach you how to play the piano? Is the fishing pole a super simplified game of catch a fish, or is it a fully fleshed out fishing game all by itself? Is the motorcycle game just a driving sim or is it a crazy cool biker club game? What the heck is that house thing? Is the robot game just Project Giant Robot or is it a fully fledged 70 hour JRPG.
We just have no idea what the software is going to be. At the shallow end of those scenarios I'd say it's WAY OVERPRICED and there's no way I'm buying it. At the deep end I'd say there's no way I'm not buying it...I'm assuming it'll fall somewhere inbetween?!?
Looks like it's whacked on ANOTHER $2BIllion dollars today at least!
Japan Stockmarket - TYO7974 is up 4.29% this morning!
...Have these analysts seen something we haven't? Have they been given demonstrations of how the software and cardboardware work together? How else could they be so optimistic over something that could go completely either way? Either being a total dud, or being the next big thing... And they believe it's the latter. Anyone wanna poke some leaks?
@thesilverbrick
I don't think that is going to be a big problem. The patterns wil be copied and available and you will be able to recreate you 'toys' with common,y avaiilable materials. Surely N will sell refills.
I was thinking earlier surely people will be recreating these paterns with 3D printers.
@Fred13
Totally agree on the software but this is N and they know something about making mini-games which is what this is. I too see the potential of eaching someoen something like how to a play a cardboard piano.
Anyone worried about price has never walked in one of the art/edu stores because similiar DYi 'kits' for kids learning are not cheap at all and maybe you get a DvD. Overall I think its cool enough and its going to make N lots of easy money and expand Switches audience further with kids and families. Now take that money and make more awesome games (which they will) so its all good.
@QuickSilver88 Yes! Anyone can re-create the pattern on a 3d printer or a laser cutter - Nintendo have said that they will distrubute the patterns for free. You will need the software though. Interesting to see if that becomes available separately on the Eshop. We are going to see some very well made LABO creations on the internet very soon! Quite exciting really!
@Fred13 thanks for explaining. Totally agree, it is a wide open sea at this point. I’d have to hope it’ll be somewhere in between the two. I mean it isn’t ready to go now so who knows what the final product will include. Project giant robot I really hope is more substance than just smashing a few cities up.
Already preordered both!
Will probably end up getting 2 variety kits tho, due to the kids having 2 switches already lol
@Fred13
Dude, you just don't understand Wackiness of Nintendo.
Of course, the LABO games will NOT just a Typical ordinary games.
Where is your Imagination ?
The Piano, the House, The fishing games, Motorbike, etc.
Those games will be played in Not Ordinary way, there are some Surprises.
You will never knew those Surprises until you play it by yourself.
If you hoping for Ordinary games from Nintendo, you will Never found.
@PlywoodStick actually at least 3 media sites have used it
https://www.nintendolife.com/news/2018/01/hands_on_the_future_of_gaming_is_cardboard_thanks_to_nintendo_labo
https://www.theguardian.com/games/2018/jan/17/nintendo-labo-cardboard-switch-models-interactive-toys
http://www.telegraph.co.uk/gaming/features/nintendo-labo-hands-on-switch-brilliant-barmy-cardboard-toys/
@Anti-Matter You're wrong, I do understand the wackiness of Nintendo and I understand that they might do something super crazy cool that's beyond anything I could have imagined (that's more on the awesome side of my scale) I also know they sometimes take a dump (see Animal Crossing Amiibo Festival, Wii Music, Game & Wario, or Mario Party 10). I'm just saying, until I know more about the software I won't know if I'll feel like it is or is not overpriced. I'm excited to learn more about their software.
@Fred13 ugh all horrible decisions made by Nintendo. Let’s hope they don’t think they’ll get a pass because it’s aimed at kids. These games better have an acceptable level of substance.
@Donutman I'm just para phrasing the most common complaint for the Wii. 'Ooo, it's for casuals' etc etc.
The financial industry must be impressed with Nintendo, charging $70 for packaging material. If Nintendo managed to sell cardboard to the consumers, makes you wonder what other junk they can't sell?
I'm sure it will be a short-term fad, Nintendo will sell millions of them and make a fortune and then everyone will file them away in a drawer somewhere.
(I'm definitely in by the way).
This is just meaningless stock-market swings. As noted in the article it's only a seven-week high. All they've done is recover the value they lost by not announcing anything new in December.
@manu0 I prefer my PSVR over this thing.
@Fred13 Ah okay, didn't know about the others. The Telegraph article is a particularly good account. So just the robot one has not been demo'ed and showcased yet.
@BigKing i) why would you even compare the two?
ii) you haven't even played with this
Show Comments
Leave A Comment
Hold on there, you need to login to post a comment...