Nintendo And Its Impact On Innovation

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As earlier stated, Nintendo excels in innovation. The company distinguishes itself from competitors by heavily investing in research and development (R&D) and by taking risks on new technologies. For example, in 2001 Nintendo released its GameCube. Instead of using the CD platform used by Sony, Sega, and Microsoft in their sixth-generation consoles, Nintendo utilized a proprietary optical disk technology that was visually similar to CDs but did not not work in standard CD players (“Nintendo Wii,” n.d.). Genyo Takeda, Nintendo’s general manager of Integrated Research and Development, explained that Nintendo’s success in innovation was the result of many groups of developers having free reign to invent, even if their inventions were…show more content…
In 2010, Sony introduced their PlayStation Move which was a more accurate version of the Wii Remote (“Nintendo Wii, n.d.). That same year, Microsoft released their Xbox Kinect. Unlike Nintendo and Sony, Microsoft did not use a remote or wand as their interface; instead, they developed a webcam-style add-on to track gamers’ motions and gestures (“Nintendo Wii, n.d.). This was a major problem for Nintendo because they no longer had the advantage of being the sole provider of motion sensing technology. Furthermore, Nintendo visual quality was inferior to its competitors, especially Sony (“Nintendo Wii, n.d.). Consumers could no longer see any difference between the three video game oligopolies and Nintendo lost a significant amount of market presence (“Nintendo Wii, n.d.). To address their competitors’, Nintendo abandoned the low-cost differentiation strategy that made it a powerhouse in the gaming industry and embraced the enhancement strategy used by Microsoft and Sony.
In late 2012, Nintendo launched the Wii U, an upgraded version of the Wii. The Wii U was priced much higher than its predecessor, with an initial retail price of $299 for the basic Wii U and $349 for the deluxe (“Nintendo Wii, n.d.). Nintendo’s pricing strategy signaled its intention of competing with Microsoft and Sony. The Wii U include a revamped GamePad that allowed users to be more in touch with the game (“Nintendo Wii, n.d.). Nintendo hoped the enhanced
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