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Nintendo Case Analysis

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Nintendo Case Analysis
Nintendo’s Disruptive Strategy
Implications for the Video Game Industry

Agenda
The Video Game Industry Disruptive Technology Nintendo’s Disruptive Strategy
• Dominated by Industry Leaders • Customer Base Declining • Creates a New Market • Creates a New Value Network • New Market: Adults and Children • New Value 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 • Disposable Income

Multi-use consoles
• Movies • Music • TV Shows

Shrinking Customer Base
• Occasional gamers stop playing • Few new gamers

Internet Gaming
• Social-networking • Virtual World • In-game Ads

Industry SWOT Analysis
STRENGTHS
• HD & Graphics • Developing Complex Games

WEAKNESSES
• Attracting new gamers • Targeting multiple customer segments

OPPORTUNITIES
• Web-enabled gaming • In-game advertising

THREATS
• Increasing game complexity requires more sophisticated consoles • Must sell consoles at a loss

Significant Milestones in Video Game Console industry
1967
First video game console Brown Box

2000
Sony released PS2

2001

Microsoft released Xbox

1972

First commercial video game console Magnavox Odyssey

1996
Nintendo released N64, last mass market system to use Cartridges

2001
Nintendo released Game Boy Advance

1975

By Atari Inc, First Commercially successful video game, Pong

1995
Sony launched PS

2004

Nintendo launched DS, portable console, Wi-Fi enabled

1977

Atari VCS, Cartridge based system played multiple games

1991

2005
Nintendo launched Super NES in US
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