The Corporate Strategy Of Nintendo

To attempt counteract this cyclical slowdown, EB games have introduced an ever-growing variety of accessories with games to increase the revenue raising capacity of their respective consoles, as well as maintaining the loyalty and attention of a fickle gaming public. Some types of games have been released, with specialty controllers to great success, mitigating the expected lull in sales in the lead-up to new consoles. Recently however, the competition has become slightly skewed. Nintendo’s newfound dominance of the market is causing some headaches for Sony and Microsoft.

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).

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.

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.

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 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.

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)

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

2) Competitor Sony PlayStation appeared to gain a competitive advantage in the marketplace when third party developers perceived them as profitable in the market.

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 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.

Nintendo take the actions it did? How did these affect the value created by the industry?

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.

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.

According our case, there are several rivals in this industry, such as Electronic Art, Activision Inc, THQ, Take Two Interactive Software Ink, Midway Game Inc. Moreover, as we know, some companies which produce game-playing device, like Sony, Microsoft, Nintendo, also create their own game with in-house staff, in this industry