Nintendo Case Study

6166 Words25 Pages
Avinash Tyagi
Nintendo Case Study
Company: Nintendo CO., LTD.
Industry: Video Games

Company History
Founded in 1889 by Fusajiro Yamauchi, Nintendo began as a manufacturer of Japanese Hanafuda (flower cards) in Kyoto Japan, by 1902, they expanded to manufacture western playing cards as well and in 1951, under the control of Hiroshi Yamauchi, the grandson of Fusajiro, they changed their name to Nintendo Playing Card Co. and a year later opened their HQ in Kyoto. In 1962 they were listed on the Osaka and Kyoto Stock Exchanges, and a year later renamed themselves as Nintendo Co., Ltd., their current name. By the mid 70 's, they were expanding into arcades and electronic gaming and by 1977 they
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Using these strategies, Nintendo blended the concepts of differentiation, innovation and cost leadership, as Nintendo 's systems not only sell for less than the competition, while still remaining profitable (, November 2006), their method of control is unique, the Wii is controlled by a motion sensitive remote controller, and the DS utilizes a touchscreen, features that are not found on its competitors systems.
Nintendo 's second strength and another distinctive competence, is its internal software development teams, while all three console makers have internal development teams, Nintendo 's teams are dominant; according to VGChartz, 35 of the top 50 highest selling video games of all time, were made by Nintendo, of those, 9 are Wii games and 8 are DS games. Of its competitors, only five Sony games are on the list, none from the PS3 or PSP, and only 2 games from Microsoft, and only one on the Xbox 360. So far the Wii has sold over 475 Million units of software and the DS over 548 Million, by comparison, the PS3 has sold a little over 236 Million, the Xbox 360 346 Million, and the PSP 158 Million (, May 8, 2010).
Nintendo 's third strength is its extremely strong financial position; Nintendo 's net income for FY ending March 31st, 2010, was 228.6 Billion yen (2.5 billion dollars), down
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