- Given the current pressures from competitors and substitutes, what should Nintendo do? (last Student ID digits = 0 – 3)
Nowadays, electronic game industry has three dimensions: traditional video game console sector, PC and online game sector, and new emerged smartphone game sector. Historically, Nintendo was the leader in traditional video game console sector with highest profit margin than its competitive peers, Sony and Microsoft. As the technology developing, however, the whole electronic game industry is at a turning point. The difference among three sectors will become vaguer and vaguer. As Sony and Microsoft caught up the profit margin and smartphone sector emerged, Nintendo is on the cliff of revolution.
Given the current pressures from competitors and substitutes, Nintendo should revolute follow:
* Protect current customer base by keeping on positioning wider age range game player (i.e. from teenager to senor generation). * Overcome its graphic obstacle by building up alliance with graphic chip makers, such as NVidia. * Enhance its leadership in video game sector by keeping on investing in motion sensor game technology. In addition, touch screen might be a good complement. Next generation game will have more and more motion sensor elements, Nintendo must stand on the edge of this trend. * Construct game download platform website for game programmer and persuade them to sell their products on the website (i.e. mimic smartphone game sector to save cost for both Nintendo games suppliers and customers). * Change its customers shopping habit and provide game trails on the game download platform website. * Invade online game sector by persuading game programmer sell their game updates or complements on the Nintendo game platform website (i.e. mimic online game sector strategy to capture higher profit margin from updates). * Keep on supporting its royal and reliable game programmers/suppliers by sharing game and...