The Corporate Strategy Of Nintendo

Nintendo’s strategy for pricing of consoles and games was to lock-in the network effects consoles offered by pricing them at- or below- cost and reaping profits by pricing video games at significant margin. Nintendo took these actions because it knew that if consumers used the NES/ Famicom console, they would be a captive audience for its higher-margin video games which were necessarily more perishable from a consumer taste perspective. This affected the value created by

• Every company produce video game for different consoles, consoles are developed new generations fast, game developer should compete to gain license for new generation console.

The way games are shifting as years pass, the X will continue to dominate the market as the greatest console in the industry. Bibliography Howse, B. (2017, November 03). The Xbox One X Review: Putting A Spotlight On Gaming. Retrieved from https://www.anandtech.com/show/11992/the-xbox-one-x-review/7 Gartenberg, C. (2017, June 12).

As sales of Nintendo’s Wii and DS dominate the PlayStation 3 and Xbox 360, and PlayStation Portable, respectively, the pressure continues to mount on Sony and Microsoft to move to the next level in the ongoing console wars. Sales of the Wii in 2008

They manufactured Nintendo entertainment system, Nintendo 64, GameCube, Nintendo switch and many more gaming consoles. They are known for various memorable games like Mario, The Legend of Zelda and Pokemon. Currently, they are also reducing the games for smart devices and they started it in 2015. They got huge success in smart devices with games like Pokemon go and Super Mario Run.

Nintendo first started out as a playing card company that would soon grow into one of the largest video game company in the world. Shigeru Miyamoto created one of Nintendo’s most well-known iconic characters: Mario. Mario made his first appearance in Donkey Kong named as Jumpman. With the graphic limitations at the time Mario’s design was simple and consisted of red overalls, a blue shirt, large nose, and a mustache. A beloved character by all, Mario with his simplistic games, has made an impact on those who have played them. Mario continues to play a role in their lives. To this day, Nintendo depends on their widely known mascot to help them succeed in the gaming industry.

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.

Threat of Substitutes: The main substitute for a video game console would be a personal computer. They can both be used for playing different types of video games and be used for entertainment. The threat of this substitute edging out video game consoles is very low, because they are not completely similar. If anything, video game consoles are edging out personal computers in the gaming industry. The threat of substitutes in the video game is not very high. In 2008, this was not a very strong force in the video game industry.

However, analysts expect growing consumer incomes, the late-2012 release of the Wii U and the 2013 release of Xbox One and PlayStation 4 to lead to a 4.3% revenue growth in 2014.

Both Sony and Microsoft focused their efforts on hard-core gamers and offering processing power and cutting-edge features to attract them. On the other hand, Nintendo has been trying to attract new customers that traditionally are non-gamers. The

Global Video Game Console Industries must try to maintain a sustainable competitive advantage through innovation such as creating an upgraded version of the game every year or increase their on and off line presence to better satisfy their customers. There are many competitors in the Video Game industry that include PlayStation 3, Xbox 360 and Wii. These gaming consoles compete in terms of price, durability and loyalty. With Intensity Rivalry being a major determinant of competitiveness, video game companies work towards dominating the industry as well as gaining the major part of the industry profit pool. (Blackwell, 2002)

The latest product launched by Nintendo has been the Game Cube, a video game console which will undoubtedly prove to be yet another bestseller.

The fifth and final force is that of the intensity of rivalry. This is the strongest force in the video game industry. Nintendo was very strategic in targeting an audience that Microsoft and Sony neglected. While Microsoft and Sony focused on the typical gamers, males ages 18-34, Nintendo focused on a broader audience “everyone” when creating their Wii. In the video game industry rivalry Microsoft and Sony are battling for the same market, while Nintendo has much of its audience all to itself. This is why

Nintendo however is not present in this new market and therefore it is very important to take in consideration to enter this new area because at the moment the company does not have products that satisfy those new needs resulting in the loose of sales and consequently revenues.

That would be 15% lower than 2011. Meanwhile, two of the biggest movements in games—the rise of social and mobile gaming—were pioneered not by the establishment but by outsiders like Apple, Facebook, and Zynga. (WARREN, J. (2012). Based on research, timing is critical for a new entry into the video game console industry. A console start-up must wait for current console giants: Microsoft and Sony gaming consoles to age to the point where interest drops. This drop in interest can be an “opening” a start-up needs to jump-in prior to Microsoft and Sony releasing new consoles. So, the statement of the problem would be when to enter the video game console industry.