Assignment (Case Study of Nintendo)

Nintendo has dominated the console market with their first handheld gaming device called Gameboy, having sold over 150 million units, and continuing to create more handheld ones. Games have also become easily accessible on smart phones, following the trend of portability. According to research conducted by the Entertainment Software Association (ESA), 43% of gamers play games on their smartphones, and 25% play on a wireless device. Video game consoles have drastically improved since the 1970s, having become lighter, faster, and more interactive. All of these improvements were made possible by the advancements in hardware.

Nintendo’s strategy for pricing of consoles and games was to lock-in the network effects consoles offered by pricing them at- or below- cost and reaping profits by pricing video games at significant margin. Nintendo took these actions because it knew that if consumers used the NES/ Famicom console, they would be a captive audience for its higher-margin video games which were necessarily more perishable from a consumer taste perspective. This affected the value created by

There are many people play video game, pc game, massively multiplayer online game and mobile game, the game industry is increasing. Because of technology, the game industry can develop more game which have high quality, and develop more generation of console.

The Wii is developed on the same principle as of an Xbox and other gaming consoles. A form of interactive media that has extended to the point where it now has virtual exercise and sporting games you can play in your living room. With means of a wireless “power plate” and hand held cordless remote, Nintendo has virtually compiled almost every sport or physical activity one can do. So what does it extend? The Wii and its programs have been developed to stimulate its users physically and mentally, therefore it extends the entire body. Nintendo also have Learning

After seeing how the Nintendo Gamecube was doing many 3rd party developers did not want to work with Nintendo. Developers wanted to make mature games for the Play Station 2 and the soon to be released Xbox. Another reason developers shied away from developing on the Gamecube was for the lack of power and storage space with the discs (Thomas, L). Sony was using standard sized discs which meant that bigger games would be able to be played and developed, because of all the storage. Nintendo decided to try using smaller discs that had minimal storage and games would not be as big. This turned developers away and as of 2017 this decision Nintendo made back in 2001 still affects Nintendo.

However, as the Wii’s target market is slightly different from that of either the Xbox 360 or the PS3, it is of less concern in the short-term. Nintendo’s dominance of female console gamers, however, is of serious concern. In 2008, the Wii outsold the PS3 and Xbox combined, indicating Nintendo’s strength in the market, as well as the growing eminence of female gamers as a target for game and console developers.

Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.

Threat of Substitutes: The main substitute for a video game console would be a personal computer. They can both be used for playing different types of video games and be used for entertainment. The threat of this substitute edging out video game consoles is very low, because they are not completely similar. If anything, video game consoles are edging out personal computers in the gaming industry. The threat of substitutes in the video game is not very high. In 2008, this was not a very strong force in the video game industry.

The consumer video game systems offer an exciting opportunity to discuss and analyze the design of technology based on the strategy of each of the players within the industry. We will focus our analysis on the next generation of video consoles: Nintendo’s Wii, Microsoft’s Xbox 360 and Sony PlayStation 3 (PS3).

The latest product launched by Nintendo has been the Game Cube, a video game console which will undoubtedly prove to be yet another bestseller.

The fifth and final force is that of the intensity of rivalry. This is the strongest force in the video game industry. Nintendo was very strategic in targeting an audience that Microsoft and Sony neglected. While Microsoft and Sony focused on the typical gamers, males ages 18-34, Nintendo focused on a broader audience “everyone” when creating their Wii. In the video game industry rivalry Microsoft and Sony are battling for the same market, while Nintendo has much of its audience all to itself. This is why

The key facet responsible for the Wii’s popularity lies in the innovative design, which “calls to action” the player with physical movement. The writer views the wireless motion sensitive game console as a new, simple and fun method of gaming for all age groups. As a result, it may appeal not only to the traditional expert video game player like the PS3, but other individuals outside that segment. It thus

* Quality of graphics and the power of processors has lost its importance Wii more successful than PS3 despite its underpowered processor and comparatively basic graphics

Nintendo however is not present in this new market and therefore it is very important to take in consideration to enter this new area because at the moment the company does not have products that satisfy those new needs resulting in the loose of sales and consequently revenues.

The main obstacle facing a start-up video game console company from entering the industry is saturation of the market from the larger video game console makers or the “big three” Nintendo, Microsoft, and Sony. The big three tend to release new game consoles around the same time frame and compete head to head for sales. During the time frame it is impossible for a new entry to jump into the fray. 2010 was a banner year for video console sales Sony’s PS3 sold 14 million units followed by Microsoft’s Xbox 360 13 million and surprisingly Nintendo’s Wii led the big three selling 17 million units. After the 2010 release of all three consoles sales started to decline for each company. Nintendo took the largest sales loss at 72% in 2013 only 747,000 were sold compared