Innovation Organization Nintendo

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Nintendo – Innovation Organization

Role R&D
Quoting from the Nintendo Annual Report 2012, the company strategy is the expansion of the gaming population, which is to encourage as many people in the world as possible, regardless of age, gender or gaming experience, to embrace and enjoy playing video games. Nintendo aims to expand their digital business by offering downloadable, paid add-on content, digitally distributing packaged software and so forth to adapt in environment changes surrounding the video game market and creating new business opportunities.
We can conclude from the statement that to survive in video game industry, Nintendo needs to be adaptive to the market change. In order to be adaptive, innovation is become day to …show more content…

It always has been Nintendo strength to combine their hardware design and internal software development teams. We can see the example of leveraging the strength when Nintendo DS launched in the market in 2004. The video game market in Japan and North America is slow at that time, but Nintendo successfully bring NDS to the market. The Nintendo DS contribute 40% of the total Nintendo sales in 2004 as being shown in figure below. Nintendo strategy is made the use of game console simple, unlike Microsoft and Sony with their much complex game console feature. Nintendo also made the intuitive interaction between gamer and video game to overcome the key barrier to consumption. The success of Wii is dramatically broadening the market and impossible to be ignored by their competitors. Microsoft and Sony responded by replicating some of its key element, most notably the intuitive motion-sensing game controller. Sony and Microsoft launched Sony PlayStation Move and Microsoft Kinect respectively. As shown in figure below, the market share of Nintendo begins to decline since then. The competitor is not the only threat for Nintendo, based on NPD report the trends of demand in game industry also change. Over the last 5 years, mobile gaming continues to grow. Nearly half of the

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