Nintendo Case Analysis

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.

The first console was called the Brown Box and was mad by a TV maker, Ralph Baer. The Brown Box was made in 1967. Nolan Bushaell bounded Atari in 1972. Atari then had its first big hit with the infamous Pong. In 1980 Mattel releases the Intelivision which is the first challenge against Atari’s rule. Nintendo wasn’t always the video game we know, it was originally a Japanese playing card company. In 1985 Nintendo releases the Nintendo releases the Nintendo Entertainment System, Wow what a creative name that is. Then in 1989 they released their second smash hit with the Gameboy, to compete with other companies such as Atari, Who released their Atari 2600. It included the newly released Tetris which would grow to become a massive hit to top off the huge sales of the Gameboy. In 1991 the super Nes is released. Then the original PlayStation is released in 1995 becoming extremely popular. To combat this popularity Nintendo released the Nintendo 64 in 1996. It includes favorites such as Mario 64, Zelda, and Metroid. The PS2 is released in 2000 marking the beginning of a new era of game consoles. It is the first console to include 128 bit graphics. A problem with original game consoles such as the Atari 2600 is they had little memory. With such little memory Graphics could only be up to 160 by 228 pixels. The normal today is 1925 by 1080 pixels. Some of the earliest adventure games used text instead of images to create the world you’re in. The first of these “text” games was

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

When the NES came out Nintendo started a licensing company for third party games to produce their games in Nintendo factories. After the NES was created Nintendo redesigned the Famicom (the game cartridge) to look like a VHS tape to help grip the system grip it better. Also, the rarest game in NES history is the boxed version of Stadium Events, “but only a handful of boxed, complete copies have ever been seen in the wild, and they can fetch anywhere from $35,000-45,000 at auction” (www.usgamer.net). The best selling game in NES history was Super Mario Bros as it sold a total of 40 million copies (www.usgamer.net). Before the NES came along, Donkey Kong was the king of gaming. The reason for this is because arcades were the only way to play at the time. Luckily, NES games were playable in the arcades. Games like Ninja Gaiden and Super Mario Bros were stretched into the arcades by a system called Play-Choice10. In conclusion, the NES was part of a revolution in

Everyone was excited about a new gaming system that was coming out;“Nintendo first released the handheld Game Boy system in North America on July 31, 1989” (Epstein pg.45). Many families stood in line for hours trying to get their kids the Nintendo, some parents didn’t stand in line for their kids they stood in line for themselves. When the Game Boy first came out they were only $89.99, today they are $169.99. They were the new toy that every kid wanted to have. Parents started

You may be wondering where it all started, where it all came from. Well I have the answer you see it all started back in September 23 1889, a young man named Fusajiro Yamauchi opened a small store in the middle of Kyoto. He was very young (he only just turned 13) but he none the less was the first owner of Nintendo. He didn’t just go straight to games, and he didn’t want to be like any other shops selling normal everyday good such as silk and tea. He wanted to be unique and start selling a product that the government had just legalized. Can you guess what it is? That’s right nothing more than cards. But these weren’t just some ordinary card these where Nintendo cards as seen in picture #1. You can see how different they were sure there where

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.

Nintendo did first start of as a card game company in the late 1880’s and the home video game console TV Game 6 in color in 1980’s.

The five forces that drive industry competition, a model established by Michael Porter, are; threat of substitution, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and intensity of rivalry. The video game industry must deal with all five of these forces. The analysis of the strength of these five forces within the video game industry will help to draw a conclusion as to whether or not it is an attractive industry for Sony to be in.

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).

In the years of 1992 through 1996, Nintendo was experiencing declines in sales. In order to recover sales, they increased their marketing effort. Their most successful gaming system at the

* The smaller game developers are having difficulty staying competitive due to a lack of capital, and unpredictable cash flows.

Herman et all (2002) points out that history of video games begins from 1971 year, when Nutting association released 1500 machines with Spacewar video game. At the beginning it was too difficult to control the game process and playing machines had huge dimensions. But by the time with new technologies they become more compact and easier to play. According to the information given by Herman et all (2002), the period between the years of 1978-1981 is called ‘golden age’ of video game industry. In this period the arcade games ‘Football’ and ‘Space Invaders’ were released. All previously known sale records were broken by these two games with nearly equal wages. In this time interval great breakthroughs in the field of graphics were achieved,

This report has considered analyzing two different companies that is doing well in the gaming market.

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