Marketing Plan and Situational Analysis for Nintendo Wii

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.

I believe that hand held consoles such as the PS Vita and PSP (PlayStation Portable) are decreasing in popularity. In the future I do not think they will increase in popularity. This is because they are expensive considering the hardware they currently use is very limited and not many developers are making games for these platforms, for example, the vita only has four games published this year so far. However, the new Nintendo 3DS has been growing in popularity because popular game franchises like Pokémon and Super Mario keep it alive.

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

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.

Nintendo eschewed this philosophy most dramatically with the Wii, catering directly and unabashedly to the casual subset of gamers. As only one example, complex gamepads with a dozen buttons and knobs were replaced with a controller more akin to a remote control, a device with which any American would be familiar.

- Wii shows how a supposedly rigid family system can be flexible and allow change.

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.

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

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).

* 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 video game console industry is a very competitive segment. This segment requires a keen eye on product development as well as strategic product marketing and a rather large logistics arm to ensure rapid distribution to targeted areas. Video game industry in the US, which is hugely driven by retail sales of software and hardware, registered revenues of USD ~ million in CY'2012. Even so with the advent of new video game players in the industry, the revenues decreased by 11.7% compared to