Marketing Analysis for Nintendo Wii

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Marketing Analysis for Nintendo Wii

“The central premise, it is best to zig when others zag” -Satoru Iwata, CEO Nintendo 2002

Company Background/Product
Nintendo is a consumer product that is literally changing the game, and this is only the beginning, whether veteran gamers like it or not. Nintendo Wii attracts new customers, old people, young people, girls who do not already play video games and people who look down on them.

Founded by Fusajiro Yamauchi in 1889, Nintendo started in making playing cards. Today the global company is led by Satoru Iwata, the fourth and current president, while the Nintendo of America president is Reggie Fils-Aime. Nintendo is one of the largest companies in Japan and was instrumental in re-creating the video game market. The name Nintendo can be roughly translated from Japanese to English as "leave luck to heaven". As of October 18, 2010, Nintendo has sold over 565 million hardware units and 3.4 billion software units.

Nintendo's near monopoly on the home video game market left it with a degree of influence over the industry exceeding even that of Atari during Atari's heyday in the early 1980s and today it seems that Nintendo sells less but makes more money. It has been profitable practically every year since it moved into the video game industry over two decades ago and has long held a dominant position in hand-held gaming, developed through a strategy of focusing on playability.

The company has recently gone on record to admit that demand is simply much higher than supply for their current Wii and Wii Fit while the DS is up 142% over last year. The company's own employees have even been put on a strict Wii system purchase limit.

The company says it wants to be the games company that puts smiles on the faces of people of all ages and genders, and following the sales of Wii and Wii Fit, there are likely to be grins all around at the HQ. Nintendo's official website saw the largest increase in traffic recently, while the Sony PlayStation website saw a moderate decrease.

The company's products are actually cheaper than that of the competition and are one of the oldest and most successful console game developers. If you want a console to play games or to use for exercise you won't go wrong with Nintendo.

Nintendo is taking a radical approach by attempting to change the very way that people play games. Instead of cramming as much graphic capability as possible into its system, Nintendo has focused its effort on creating an innovative controller that makes game play simple. A user can control a game by waving the wireless controller instead of moving a joystick or furiously mashing buttons.

The Wii is a home video game console released by Nintendo on November 19, 2006. As a seventh-generation console, the Wii primarily competes with Microsoft's Xbox 360 and Sony's PlayStation 3. Nintendo states that its console targets a broader demographic than that of the two others. As of July 2011, the Wii leads the generation over the PlayStation 3 and Xbox 360 in worldwide sales and in December 2009 broke the record for best-selling console in a single month in the United States.

A distinguishing feature of the console is its wireless controller, the Wii Remote, which can be used as a hand-held pointing device and detects movement in three dimensions. Another distinctive feature of the console is WiiConnect24, which enables it to receive messages and updates over the Internet while in standby mode.

Nintendo’s core competencies lie among the company’s important resources including its research and development team, marketing team, manufacturing processes, and the company’s management, headed by Satoru Iwata. These resources create valuable capabilities, such as Iwata’s ability to predict the future of video gaming. The company’s Research and Development gives it a capability in innovative technology and game concepts, while marketing has allowed the company to create an effective...
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