Regarding new positions, we initiated a position in entertainment company Nintendo (TSE:7974, Financial). Shares of Nintendo and other game companies have long traded based on “console cycles,” but we believe the industry is rapidly changing in the wake of digital distribution and subscription-based services via online gaming. Nintendo, similar to Sony, is trying to move out of console cycles, and shifting to a more-stable profit stream based on monetizing its intellectual property in multiple media not limited to games. President Shuntaro Furukawa, appointed last year, is more open to collaborating with other parties.
From Matthews Japan Fund (Trades, Portfolio)'s third-quarter 2019 commentary.
