Nintendo Marketing Report

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.

Consider the situation faced by Nintendo, the oldest video-game company in the world. The company had positioned its line of developing good games for all age stages and strongly opposed to violence and pornography. In 1985, shortly after the company’s introduction of Nintendo Entertainment System to the United States, Nintendo met its match when Japanese entertainment giant Sony and American tech behemoth Microsoft entered the field with the PlayStation and Xbox.

The birth of Nintendo dates back over 100 years ago and originally made only Japanese playing cards. This paper will explore how Nintendo started out as a playing card company and became one of the biggest gaming corporations that are alive today. It will also explore the success and failures of the company and how it achieved the status it has today. We will discuss the technology of gaming and how it evolved over time.

In 1889, Fusajiro Yamauchi founded a small company in a building in the heart of Kyoto, Japan.(Nintendo History. n.d.) The company's purpose was to create a form of Japanese playing card called Hanafuda. He called this company Nintendo. Over the next century Nintendo grew and expanded, changing its products and services, and attempting new things as the times changed. Then, during the 1970s Nintendo fixed its eyes on a new market, video games. Nintendo showcases how a small card company can become a gaming powerhouse and a legend for companies and gamers alike.

Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda. In 1956, Nintendo’s president Hiroshi Yamauchi began to realize the limitation of playing cards business because it was viewed as a mere tool of gambling. In order to overcome the limitation, Nintendo struck a deal with Disney in 1959 which allowed them to put Disney characters on their playing cards. This opens up new markets where both children and homemakers started purchasing playing cards.5 Due to this success; Nintendo went public in 1962 and became a listed company in Osaka Stock Exchange. Soon after, Nintendo started to venture in

Several years had passed and a Japanese company by the name of Nintendo decided it wanted to enter the market. Nintendo’s Family Computer, or Famicom, was doing well in Japan and Nintendo wanted to try and find success in North America. This proved to be difficult because America was still wary on the idea of game consoles after the crash. To try and avoid the skepticism that came with items labeled as a game console, Nintendo rebranded the Famicom as the Nintendo Entertainment System and marketed it as a toy. Believe it or not, this actually worked and Nintendo became a household name. In order to keep their success going Nintendo took steps to avoid another market crash. Nintendo would put developers under a contract that kept them on their console and would keep them from developing games for developers. Developers also had a limited amount of games they could release in a year as

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

The Nintendo Switch is part of an Oligopoly due to the few number of major producers, the difficulty of getting into the market, the similarities in products and the slight amount of control that each company has over its price in the market. When it comes to producing video game consoles there are 3 current producers. Sony, Microsoft and Nintendo. Sony is the producer of the PlayStation 4, Microsoft is the producer of Xbox One, and Nintendo is the producer of the Nintendo Switch and the 3DS. There are many other companies that develop consoles that do one of two things, either they have games built into them or they stream the game from their servers.

Like St. Jude 's, Nintendo, a for-profit business, is building its brand identity through their PR and advertising and their social media. Throughout Nintendo’s many years of business, they have had many logos for their company, consoles, and other products. Their most used logo is white text that reads, “Nintendo” in a red oval around the text. This logo is used on buildings, clothing, the game consoles, and pretty much all of Nintendo 's other merchandise. This logo has been used

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

Nintendo’s emphasis on creative games and interesting story lines changed user perception of gaming. High quality of gaming introduced a new breed of consumers.” (wikipedia)

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 Company, Ltd is based in Kyoto Japan. They are recognized as being the "worldwide leader in the creation of interactive entertainment" (Nintendo, 2002, PG). Some of the world's best selling video gaming has come from the Nintendo Company, including Game Boy and Nintendo 64. In America Nintendo is based in Redmond, Washington. It is interesting to note that in American households nearly 40% have a Nintendo product.

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).

Beside the mental effects of gaming, lay the physical effects. Another belief of gaming is that it is physically threatening, and if not taken in moderation, that may be true, but at face value, some video games can be a very useful tool for physical fitness. “Serious” games, as mentioned previously, are games that are designed for personal improvement, but as stated by Mark Baxter, “serious” games are just a subgenre of a more encompassing genre known as lifestyle games. According to Baxter, these games lack the more academic focus typically associated with “serious” games, yet still focus primarily on improvement through tier one gaming experiences. An example he gives of a successful lifestyle game is Wii Fit, which is a game that consists of exercise activities. He also claims that games like these have been adopted in several physiotherapy rehabilitation centers (Brain Health and Online Gaming). Baxter is right on this claim. These lifestyle games, also known as fitness games, contain a variety of physical benefits, including rehabilitation, and thankfully, several console designers are attempting to embrace these positives. In 2006, Nintendo released the Wii console, which is the console Baxter’s example was played on. It saw large commercial success due to its ability to provide gamers with an entertaining and physically stimulating experience, selling over one-hundred million units worldwide. This console allowed players to exercise in a unique way that entertaining,