Nintendo Case Study

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Avinash Tyagi
Nintendo Case Study
Company: Nintendo CO., LTD.
Industry: Video Games
Website: http://www.nintendo.com/

Company History
Founded in 1889 by Fusajiro Yamauchi, Nintendo began as a manufacturer of Japanese Hanafuda (flower cards) in Kyoto Japan, by 1902, they expanded to manufacture western playing cards as well and in 1951, under the control of Hiroshi Yamauchi, the grandson of Fusajiro, they changed their name to Nintendo Playing Card Co. and a year later opened their HQ in Kyoto. In 1962 they were listed on the Osaka and Kyoto Stock Exchanges, and a year later renamed themselves as Nintendo Co., Ltd., their current name. By the mid 70's, they were expanding into arcades and electronic gaming and by 1977 they released their first home video game machines, the TV Game 15 and 6 in Japan. In 1980 they opened their American subsidiary, Nintendo of America and released their first portable, the Game & Watch. 1981 saw the premier of Donkey Kong which featured two of Nintendo most famous characters, Jumpman, who would later be renamed Mario, and the titular character Donkey Kong. 1983 saw the Japanese release of the iconic Famicom console and Nintendo being listed on the Tokyo Stock exchange. Two years later, the Famicom would be released in the United States as the Nintendo Entertainment System or NES(Nintendo, “Annual Report”, 2009, P.14-15), the NES succeeded in reviving the American Console market which had crashed in 1983 (G4, “Game Makers: NES”, n.d.). In 1989 Nintendo released the Game boy, the first handheld with interchangeable game paks (cartridges), and a year later released the Super Famicom in Japan, the system arrived in America a year later as the Super Nintendo Entertainment System or SNES. In 1996 the Nintendo 64 was released worldwide and Game Boy color in 1998. In 2001 the Game Boy Advance was launched and the Gamecube a year later. In 2002 Hiroshi Yamauchi stepped down as Nintendo President, and was replaced by the current president of the company Satoru Iwata. In 2004, the Nintendo DS, their current handheld gaming device, was launched, with a dual screen, touch control setup, and two years later released the Nintendo Wii, their current home console with its remote motion controller (Nintendo, “Annual Report”, 2009, P.14-15).

Company Mission and Philosophy
The Mission statement of Nintendo, as stated by President Satoru Iwata in the 2009 Nintendo Corporate Social Responsibility Report, is to put smiles on the faces of everyone they touch(Nintendo, “CSR Report 2009”, 2009, P. 3-4). To quote Iwata:

Nintendo's Mission statement has greatly influenced its product design over the last 6 years, as first with the DS and then with the Wii, Nintendo has designed their flagship products to appeal to a wide variety of consumers and expand the gaming population (Satoru Iwata, “Message from the President”, n.d.).

Current Company Status
Current CEO: Satoru Iwata
Current Nintendo of America:: Reggie Fils-Aime
Financial data in millions of yen
Net Income: 228,635
Sales: 1,434,365
Total assets: 1,760,986

Company Strengths
As a company, Nintendo currently enjoys a series of strengths, first, its the Market leader in both home consoles and handheld gaming devices; second, the company has strong internal software development teams; third, the company has an extremely strong financial position; fourth is the company's name brand recognition and reputation for quality. According to independent sales tracking firm VGChartz, Nintendo currently has market leadership in both the handheld and home console markets, having sold over 70 Million Wii home consoles and 130 million DS handheld devices. By comparison its competitors Sony and MS have sold fewer than 40 million of their respective home consoles (the PS3 and Xbox 360) and Sony's handheld device, the PSP has sold less than 60 Million units (VGChartz.com, May 8, 2010). This is actually a result of the distinctive competence of...
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