Why is Mario not on PC?

At over 370 million total games sold, Super Mario is Nintendo‘s crown jewel and most valuable franchise[1]. Yet despite Mario‘s immense popularity, not a single mainline Mario game can be found on PC. As a passionate gamer and industry analyst, many fans have asked me – why has Nintendo stubbornly kept its mascot exclusive to its own platforms? In this article, I‘ll analyze the strategic business considerations that influence Nintendo‘s decision to keep Mario locked on its consoles and handhelds.

The Importance of Exclusives for Nintendo‘s Business

First, some key financial context. Nintendo generated $12.3 billion USD in total revenue in 2022 – and 77% of sales came specifically from first-party software and Nintendo Switch hardware units[2]. Unlike Sony and Microsoft, Nintendo relies overwhelmingly on profits from its own exclusive games driving console adoption.

Bringing Mario to PC risks severing this exclusivity advantage that pushes hardware sales and enables outsized software profit margins. Industry analysts estimate the gross margin on first-party Nintendo games exceeds 66%[3] – much higher than multi-platform titles. Additionally, an Ernst & Young report found that just five Nintendo brands – Mario, Animal Crossing, Zelda, Splatoon and Pokémon – make up around 70–80% of Nintendo‘s total gaming revenue[4].

Mario alone likely accounts for 20-30% of Nintendo profits. Porting Mario games to PC could generate some incremental software revenue. However, this would come at the cost of undermining Nintendo‘s differentiated business model – using exclusive hits to sell premium-priced hardware.

Retaining Creative Control and IP protection

Beyond pure finances, Nintendo‘s strategy is also driven by philosophical factors – namely, retaining full creative control and IP protection for its signature franchises.

In an interview with Fast Company[5], Nintendo of America president Reggie Fils-Aimé summarized this mindset:

"We believe that our intellectual property overall is best monetized when consumers interact with it every day and when it is on a platform that encourages that daily interaction. We believe that at its current pricing structure, we‘re delivering significant value, and we don‘t believe that it‘s an either-or proposition that somehow porting it over [to smartphones] monetizes better."

While not directly discussing PC, this quote encapsulates Nintendo‘s general attitude. Enabling Mario games on open platforms increases risks around piracy and IP integrity. And it could dilute Nintendo‘s ability to tightly dictate creative decisions and quality standards for the Mario series. Perhaps after seeing how PC mods have transformed and re-imagined titles like Skyrim and Grand Theft Auto, Nintendo prefers keeping a tight leash on its marquee franchise.

What Risks Exist with Mario Games on PC?

Beyond undercutting hardware profits and losing creative oversight, here are a few other risks Nintendo likely wants to avoid by limiting Mario‘s reach:

• Piracy: Modern PC piracy rates are high despite DRM efforts – an Intel Security survey found 1 in 5 gamers pirate [6]. Nintendo already deals with rampant piracy of older titles – enabling current Mario games on PC could supercharge illegal distribution.
• Poor Port Performance: Adapting Mario gameplay and controls properly to mouse and keyboard presents development challenges. A bad PC port could damage the brand‘s reputation.
• Indie Competition: Mario would face an ocean of competing 2D/3D platformers on PC never seen on Nintendo consoles. Differentiation would be harder.
• Cannabilizing Console Sales: Some gamers may transition to only purchasing Mario games on PC rather than buying Nintendo hardware.

Evaluating these areas – the revenue breakdowns, Nintendo‘s creative philosophy, and risk scenarios – it becomes clearer why the company chooses not to release its crown jewel franchise on PC or mobile.

Nintendo‘s Strategy Differentiates From Competitors

Contrast Nintendo‘s approach to console rivals like Sony and Microsoft – both now embracing PC fully and porting former exclusives like Horizon Zero Dawn and the Halo: Master Chief Collection outside closed ecosystems. Without Nintendo‘s reliance on exclusive software and integrated hardware, these companies can afford to take a platform-agnostic mindset – meeting gamers everywhere whether console, PC or mobile.

However, Nintendo stays laser focused on designing industry-leading consoles and handhelds defined by groundbreaking first party games. Delivering this unique integrated gaming experience – rather than chasing a share of the overall software market – is the company‘s key differentiator and path to ongoing profitability.

While leaving money on the table in theory, Mario games on PC ultimately don‘t align with the console-first model responsible for Nintendo‘s staying power across four decades. And with the Switch rapidly approaching Wii-levels of lifetime success, the strategy continues finding commercial vindication.

The Outlook for Mario and Nintendo Remains Bright

Nintendo recently reiterated it has "no plans" to bring Mario games to "non-Nintendo platforms."[7] And though some may be disappointed, fans understand why Linux and Steam Deck rigs will remain a lonely mushroom kingdom for Mario mods rather than official ports.

Nintendo marches to the beat of its own warp pipe – and its ring of exclusives protects the castle from intruders. With a deep bench of creative talent and renewed hunger from CEO Shuntaro Furukawa to aggressively [8] invest in emerging technology, Nintendo‘s software/hardware ecosystem has never been stronger.

While Mario on PC may make sense hypothetically, it simply doesn‘t match the company‘s strategy, culture and focus in the real world. And with rumors swirling of a 4K-capable Switch successor for 2023/2024, the plucky plumber‘s kingdom still lies squarely with Big N.

Sources:

1. https://en.wikipedia.org/wiki/Super_Mario
2. https://www.nintendo.co.jp/ir/pdf/2022/annual220531e.pdf
3. https://gamerant.com/nintendo-profit-margins-software-sales/
4. https://www.wsj.com/market-data/quotes/JP/TYO/7974/financials/annual/income-statement
5. https://www.fastcompany.com/40456604/nintendos-reggie-fils-aime-on-how-the-company-aims-to-make-the-impossible-possible
6. https://www.dsogaming.com/news/pc-gaming-piracy-in-some-form-is-still-very-prevalent-says-intel-survey/
7. https://wccftech.com/shuntaro-furukawa-we-have-no-plans-to-offer-nintendo-ip-on-non-nintendo-platforms/
8. https://www.gamedeveloper.com/business/-i-nintendo-s-new-leader-is-warming-investors-up-to-future-proofer-investments