1/ What Nintendo’s history teaches us about the future of NFTs and intellectual property. 🧵
2/ Today, Nintendo is the best-selling console on the planet, with a market cap of $50B. Mario & friends are worth more than Twitter and Dogecoin.
But they got their start in 1889, selling hand-painted playing cards—an emerging category of tradeable gaming collectibles.
But they got their start in 1889, selling hand-painted playing cards—an emerging category of tradeable gaming collectibles.
3/ Think of these as Nintendo’s “genesis” drop: establishing their IP with physical, collectible tokens.
Today, NFTs are in the “trading cards” phase; the difference being that ownership is recorded on the blockchain, providing increased utility and liquidity for token holders.
Today, NFTs are in the “trading cards” phase; the difference being that ownership is recorded on the blockchain, providing increased utility and liquidity for token holders.
4/ Nintendo's playing card business boomed, becoming the biggest in Japan. But they hit a ceiling.
To grow, Nintendo decided to expand into America, and make a bold move.
They struck a partnership with the one and only Disney. 🤯
To grow, Nintendo decided to expand into America, and make a bold move.
They struck a partnership with the one and only Disney. 🤯
5/ Licensing Disney's IP allowed Nintendo to expand their audience, create new types of games, and increase demand.
They sold 600k packs in a year, and in 1962, IPO’d. 📈
Expect more NFT projects to form strategic alliances that mutually broaden their distribution.
They sold 600k packs in a year, and in 1962, IPO’d. 📈
Expect more NFT projects to form strategic alliances that mutually broaden their distribution.
6/ Here’s where it gets weird. Flush with cash, Nintendo began experimenting with additional business models:
-Sex hotels (seriously)
-Taxis (what?)
-Instant rice (why?)
-Vacuum cleaners (stop)
-Robotic toy arms (sure)
That last one, the “Ultra Hand”? It sold +1M units.
-Sex hotels (seriously)
-Taxis (what?)
-Instant rice (why?)
-Vacuum cleaners (stop)
-Robotic toy arms (sure)
That last one, the “Ultra Hand”? It sold +1M units.
7/ Despite many failures, Nintendo established a culture of radical experimentation. They pushed their capabilities until they found what worked.
It’s not unlike what we’re seeing now with NFT projects exploring tokenization, events, media arms, defi elements, and merchandise.
It’s not unlike what we’re seeing now with NFT projects exploring tokenization, events, media arms, defi elements, and merchandise.
8/ Nintendo then decided to double down on games and toys.
Most importantly, they launched light beam guns. An entry into tech hardware.
Entering the light gun market led to a partnership with the first ever commercial video game console, the Magnavox Odyssey.
Most importantly, they launched light beam guns. An entry into tech hardware.
Entering the light gun market led to a partnership with the first ever commercial video game console, the Magnavox Odyssey.
9/ To further extend themselves into the market, Nintendo bought the rights to distribute the Odyssey in Japan.
And behind the scenes, they began to develop their own console.
They understood that whoever owns the platform, owns the distribution.
And behind the scenes, they began to develop their own console.
They understood that whoever owns the platform, owns the distribution.
10/ Imagine the NFT projects of today actually owning the hardware platforms of tomorrow.
If BAYC and Cool Cats were the Nintendos and Xboxes of the future.
If BAYC and Cool Cats were the Nintendos and Xboxes of the future.
11/ Thanks to their work with Disney, Nintendo understood that they would need strong IP to succeed in the console marketplace.
Enter: Donkey Kong, Princess, and Jumpman (who we now know as Mario). 🕹
Like NFTs, they were rudimentary then, but the IP has stood the test of time.
Enter: Donkey Kong, Princess, and Jumpman (who we now know as Mario). 🕹
Like NFTs, they were rudimentary then, but the IP has stood the test of time.
12/ Today’s popular NFT projects are already a fit for gaming.
Imagine Super Smash Bros., but all the characters are from your favorite NFTs: Doodles, DeadFellaz, Mutant Apes, CyberKongz, etc.
The coolest part? NFT owners will be able to participate in the financial upside.
Imagine Super Smash Bros., but all the characters are from your favorite NFTs: Doodles, DeadFellaz, Mutant Apes, CyberKongz, etc.
The coolest part? NFT owners will be able to participate in the financial upside.
13/ After the failed launch of their first console, Nintendo launched the NES with a “Seal of Quality.”
The seal might sound meaningless by today's standards, but it was a move of sheer genius.
Here's why.
The seal might sound meaningless by today's standards, but it was a move of sheer genius.
Here's why.
14/ At the time, competing consoles imposed little quality control on 3rd party devs. Customers weren’t happy.
Nintendo, however, limited devs to releasing only five titles within a year. On top of that, ONLY games that earned a seal could be sold.
Nintendo, however, limited devs to releasing only five titles within a year. On top of that, ONLY games that earned a seal could be sold.
15/ The result? A closed ecosystem. The NES was effectively the original App Store.
Sales? 62M units. 🤯
Sales? 62M units. 🤯
16/ NFT projects that hope to provide more than collectible value will have to create similar assurances of quality.
The ones that own their own distribution? They will be worth the most of all.
The ones that own their own distribution? They will be worth the most of all.
17/ The NFTs of today have as much opportunity to grow as Nintendo did from their humble beginnings.
If they can learn to think bigger, extending themselves into hardware, gaming, theme parks, movies, magazines, licensing, merchandise, and more, the potential is limitless.
If they can learn to think bigger, extending themselves into hardware, gaming, theme parks, movies, magazines, licensing, merchandise, and more, the potential is limitless.
18/ Nintendo loosely translates to “putting your faith in the gods."
To those building in the space today, I challenge you to take audacious risks. To test, fail, and find what sticks. To view your stumbles as opportunities to reorganize.
To put your faith in the gods.
To those building in the space today, I challenge you to take audacious risks. To test, fail, and find what sticks. To view your stumbles as opportunities to reorganize.
To put your faith in the gods.
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