Nintendo Case Study 1. Characteristics of game console industry? Competitive technology-focused‚ with hardcore gamer as a target market. Fast changing industry‚ since the product lifecycle is comparatively short. People demand shifted as economy changes. Different specs‚ model‚ and prices are needed to fulfill the ever-changing demand. Game console company have to balance between suitable price and quality. People are looking for new experience of game playing. 2. The Five Forces
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these points will be covered and applied on Nintendo’s seventh generation console which is the Wii. It is a new direction for the company. Nintendo desired to create an assimilation of a motion-sensitive controller combined with modest technological improvement in processing power and graphics in order to target a broader demographic than that of the other competitors. Segmentation Demographically‚ Wii targets males and females of a vast age-range [ (4 years-10 years) ‚ (11 years-19 years)‚ (20
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Network: Simplicity & Exergaming • Excellent Graphic Capabilities Nintendo’s Competition • High Development Costs Recommendations for • Saas Video Games Nintendo’s Competitors • Focus on Youth Markets Industry Environment & Products Environment Dominance of 3 industry leaders • 2000 • 2006 • 2007 Sony Microsoft Nintendo Products Technologically Advanced • Fast Processing Speed • High Definition Video • Complex Games Young Adult Customers • Mostly male • Late 20s - early 30s
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1. The demand for the Wii console is relatively elastic because it has close substitutes which are the PlayStation 3 and Xbox 360 and consumers will tend to shift to others if the price of Wii console increases or if it happens that there is no availability left for it after its first hot lunch. 2. The supply for the Wii console is relatively elastic because the quantity to be supplied is determined through the price. Also in most markets‚ it is said that time period is considered as determinant
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Nintendo Q4. What conditions now serve as barriers to effective competitive response? 1. Technology development Traditionally‚ Sony‚ Nintendo and Microsoft will create a new battle every five or six years‚ so it means that to develop a new and good product takes time. For the cost aspect‚ as the consoles are expensive‚ the cost of the video games is increased as well. In order to fulfill the customers’ need‚ company has to make more attractive and complex games and this will cost a
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HISTORY OF NINTENDO 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. The latest product launched by Nintendo has been
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The Wii is a home video game device released by Nintendo (Japanese company) on November 19‚ 2006. The sales of Wii until 2011 is 5 billion dollars ‚ this is only in 5 years. The Wii primarily competes with Microsoft’s Xbox 360 and Sony’s PlayStation 3. Nintendo states that its device targets a broader demographic than that of the two others.[8] As of December 2011‚ the Wii leads the generation over the PlayStation 3 and Xbox 360 in worldwide sales‚[9] and in December 2009 broke the record for best-selling
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Phase 1 Report: Strategic Position Analysis Industry Nintendo of America Organisation Name Organisation Contact Name www.nintendo.com Website URL Email Address 4820 150th Ave. Northeast Address Redmond City WA State / Province 98052 Zip / Postal Code Individual Organisation Type Video Gaming Industry UNITED STATES Country Nintendo of America Inc.‚ established in 1980‚ is a subsidiary of Nintendo Co. of Japan. They have been the worldwide leader in the creation of interactive
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4C stakeholder’s analysis of Nintendo Wii Market in 2006 Customers: Nintendo Co Ltd (Nintendo) and its new president Satoru Iwata believed potential existence of a consumer market that distanced itself from gaming. They opined that existing games were not only difficult to understand and play‚ but also found the consoles complex to operate. The games were built more on fantasy and targeted towards traditional over 18 year old male[1] population. Nintendo made a conscious attempt to bring
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licensing program with six retail companies Started selling Nintendo systems in New York 1988- Sales reached 7 million; licensed to 31 American software companies 1990- Nintendo had 90% of market share worldwide 1991- Increased to 100 licensees; rescinded its exclusivity requirements 1992- Nintendo had 40% market share (Sega with 60%) Left alliance they had with Sony 1996- Launched Nintendo 64 in Japan and US (had 3D capabilities) Nintendo had 41% market share (Playstation with 49%) 2001- Gamecube
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