Global Marketing Strategy of Nintendo Wii

The very first ‘Video Game’ was invented by Edward U. Condon in 1940, At first it was a simple game called ‘Nim’. In nim players try to avoid picking up the last match. Thousands of people played it, although the computer won at least 90% of the games. Around ten years later in 1950, a new computer program was created by Claude Shannon for the game of chess. In autumn of 1972 the first gaming console was released by ‘Magnavox’ and they called it the Odyssey. Three years later, the next big gaming console arrived when Sears sold the first ‘Atari Pong.’ This was the beginning of a long partnership between Atari and Sears. This relationship lasted multiple years, and Sears sold several successful games. Multiple years later in 1985, Nintendo released the Nintendo Entertainment System. This new gaming console dominated the Gaming Industry and grew Nintendo’s Company. Nintendo created several gaming console legends, such as the Game Boy, Nintendo 64, Game Boy Advanced, Nintendo Gamecube, Gameboy Advanced SD, and Nintendo DS, all of which made a huge impact on everybody’s childhood from 1985 to 2005. In the late twentieth century and early twenty-first century Playstation and Xbox also started releasing consoles. They are still to this day making successful Gaming Consoles, and individual games, as well as Xbox and Playstation.

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.

Gamers enjoy the time that is spent on video games; they love the feeling of power that is derived from winning. Gamers love the person they become while playing games. Gamers look at a game with regard to who plays these games, why these games are played, and how they are played. Gamers like a challenge, and the more advanced and challenging a game is, the more likely it will become popular amongst gamers, which directly affects sales.

The Nintendo brand has changed over the years, starting out as a simple card company that has expanded into the massive electronic giant we know today. They have had their ups and downs through their time as a gaming company but they always have the gamer’s interest in mind. As the late CEO of Nintendo, Satoru Iwata said, "On my business card, I am a corporate president. In my mind, I am a game developer. But in my heart, I am a gamer" (Yu, E., & Chan, W.

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.

However, the extent to which the hardcore gaming demographic dictates the structural aspects of the gaming industry as a whole is remarkable. Companies are still willing to cater to this audience because it is a profitable enterprise, as it is only the most devoted of fans who will line up days before a system release while generating free publicity on the internet and through word of mouth in the months prior. Thus, and perhaps unexpectedly, an important factor in the Wii's meteoric rise was Nintendo's ability, through the strength of its brand and residual nostalgia effects, to co-opt this hardcore gaming culture with a console that at best, only occasionally acceded to its wishes, while at worst, marginalized them completely. What Nintendo realized, and ultimately capitalized on, was that the hegemonic structure influencing the industry was inherently weak, in that it was essentially a small minority overwhelming the relatively silent masses. Although there are doubts to the sustainability of such an endeavor, the signs are present that the Wii has already altered the video game

GameStop has multiple target segments in which they should focus their attention. The suggested target segments fall into three categories. They have the devoted gamers, who demand the best and newest games. They tend to play video games for long periods of time six to seven days a week. This segment makes up 41% of the targeted consumer, and 52% of dollars spent (2012). This market enjoys to play games in the categories of action, role playing, sports or simulation. They do not care about the price and they value the knowledge and specialized products

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.

Both Sony and Microsoft focused their efforts on hard-core gamers and offering processing power and cutting-edge features to attract them. On the other hand, Nintendo has been trying to attract new customers that traditionally are non-gamers. The

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

By the end of 2006, two game console industry giants, Nintendo and Sony had launched their respective new products; the Wii and PS3. Various marketing strategies were implemented by both rivals and this writing attempt to analyse common and differing elements.

The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological up gradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry though they were not able to do as well as their competitors (Sony, Microsoft).

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