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Essay on Rapid Growth of Nintendo Video Games

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Introduction
Over the last 25 years the video game industry has grown rapidly, becoming a significant player in the media landscape, rivalling that of television. The industry is dominated by three key players, Sony, Microsoft and of course Nintendo, which will be centred on. The core strategy behind these global giants revolves around the same key idea, that money is to be made in software as development and manufacturing costs keep the consoles break-even sales price from most consumer price points (Williams, 2002). However the approach taken by Nintendo varies considerably from its two main rivals.
Nintendo Co. launched its first video gaming system in 1983 and has since sold over 4.2 billion games worldwide, over 669 million of which
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However the company has also launched a number of dud products during the late 1990s/early 2000s as well as in recent years.
Today the company sees itself in a difficult position, lagging behind competitors and trying to keep up in a changing marketplace. While Nintendo is still the market leader, market share is dwindling, falling a sizable 10% in a matter of four years (Euromonitor, 2014). It has been a number of years since Nintendo has created a successful innovative product and the company is beginning to feel the effect. If Nintendo doesn’t do something soon to change this, the future is bleak for this gaming company.
The total market share of the three leaders has dropped suggesting the growth of software companies, particularly those creating mobile gaming apps. However Microsoft has managed to increase their market share by 3% in the same time period, due to their positioning strategy.

Market Share in Global Video Gaming Industry. (Euromonitor, 2014) The above figures depict the industry’s’ standing one year ago, and are likely to have since changed, not working in Nintendo’s favour. At this time Nintendo had released its Wii U, launched almost a year before the PS4 and Xbox One, and should have been enjoying its success. However the console failed to gain momentum at the beginning, and ultimately botched, 2013 year ended with the Wii U selling only 2.8 million consoles. The Xbox One and PlayStation 4
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