Japan Market Insights — Fubruary II 2026：Can AI Really Replace Nintendo?

One of the commonly cited reasons is AI.

People say that AI can now create games, websites, and digital content easily, so traditional game companies may become unnecessary. We have already seen similar fears affecting the stock prices of web development and creative companies.

I understand this concern.

On the surface, it sounds reasonable.

But honestly, I think this completely misses the core value of Nintendo.

Nintendo Is Not Competing Where AI Is Strong

Nintendo is often seen as just a “game company.”

So the argument goes like this:

“If AI can create games, people can just make their own. Why would they need Nintendo?”

But I think there is a more important question people should ask:

Can you create Mario?

Can You Create Mario?

This is my old Nintendo DS Lite.

I bought it years ago because I wanted to try Mario for the first time in my life.

I played it every day.

And even though I don’t buy new consoles anymore, I still keep this.

Mario is one of Nintendo’s most iconic characters.

Even people who don’t play games know him.

He is so symbolic that during the Tokyo Olympics handover ceremony, Japan’s prime minister appeared dressed as Mario. That alone shows how deeply Mario is embedded in Japanese culture.

So the real question is not whether AI can create a fun game.

It’s whether AI — or anyone — can create that kind of character, with the same cultural weight, trust, and shared memory.

Mario Is More Than “A Fun Game”

If Mario were just a fun game, it wouldn’t have lasted this long.

People don’t just enjoy playing Mario.

They want to enter Mario’s world.

That is why at Universal Studios Japan, there is a Super Mario area where adults willingly wear Mario hats, pay extra money, and happily hit question blocks just to hear that familiar “ping” sound.

Objectively speaking, it makes no sense.

And yet, people line up.

Nintendo Stores Make This Even Clearer

Nintendo has recently opened official Nintendo Stores.

From the perspective of someone who is not a hardcore gamer (like me), these stores are honestly just merchandise shops.

Cups, handkerchiefs, plush toys — things you don’t really need in life.

And yet, there are timed entry tickets.

Long lines.

People waiting just to take photos in front of a Mario statue.

This level of enthusiasm cannot be explained by “game quality.”

Pokémon Shows the Same Pattern

The same is true for Pokémon.

Even today, Pokémon GO events attract massive crowds. So many people gather that major telecom companies bring mobile network trucks to handle the traffic.

And Pokémon Stores?

They are even more crowded than Nintendo Stores, with lines stretching outside entire buildings.

At this point, Pokémon is not just a game franchise.

It is cultural infrastructure.

Why AI Cannot Replace This

AI may be able to create games tailored perfectly to individual preferences.

But AI cannot create:

• A character that multiple generations trust

• A world parents feel safe handing to their children

• A shared cultural memory that needs no explanation

Mario is something parents can say “yes” to.

It is familiar, non-threatening, and emotionally safe.

That kind of trust is built over decades — not generated by code.

Stock Price vs. Real Value

From Japan, it feels strange to see Nintendo’s stock drop by thousands of yen simply because of AI fears.

This is not because AI is irrelevant.

It’s because the market may be looking in the wrong place.

Nintendo is no longer just selling games.

It is maintaining worlds that people want to step into — even if they no longer buy consoles themselves.

And that kind of value is much harder to replace than people think.