Nintendo's Strategy

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The video game market is currently dominated by three big sharks: Sony’s PlayStation 3, Microsoft’s Xbox 360, and Nintendo’s Wii. Unlike the PlayStation and the Xbox, the Wii is a motion-controlled game console that enhances its customers’ gaming experience along with its Wii Remote. The Wii was released in 2006 and has since surpassed both the PlayStation and the Xbox in sales ever since. In 2007, the Wii was selling enough that the Wii had a shortage in supply to meet demand and still managed to become the game console leader for that year. As of December 2012, Nintendo has sold approximately 99.38 million Wii consoles worldwide. However, the Wii console’s hardware is considered inferior to its competitors because of its low processing speed and mediocre graphics. Yet, Nintendo has found a loophole in the market that allows them to outshine their more advanced rivals. By executing a marketing strategy, Nintendo’s Wii became the best-selling game console.

As a new console, Nintendo needed to come up with a strategy that would give them competitive advantage over its rivals. First of all, the introduction of a motion sense remote controller gave the Wii an edge in differentiation. The Wii offered something new and unique that couldn’t be obtained from the cliché consoles. Instead of sitting on the couch, the gameplay had now become more interactive and physical. Although more traditional gamers were less likely to switch into this different style of gaming, the Wii managed to gain different consumers. One of Nintendo’s phrases “Wii has something for everyone” (Wii’s Official Site), clearly states their marketing objectives. Nintendo intended to target a broader audience and bring in non-gamers into the market. Satoru Iwata, Nintendo’s CEO, stated “We're not thinking about fighting Sony, but about how many people we can get to play games” “The thing we're thinking about most is not portable systems, consoles, and so forth, but that we want to get new people...
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