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Case Analysis

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Nintendo was found in 1889, in Kyoto, Japan. It is the one of the biggest video game console manufacturers, competing with other two which Sony and Microsoft. These three big companies began the first battle of game console in 2000. There were three main players, who were Play Station 2 from Sony, Microsoft’s Xbox and GameCube from Nintendo, in first war; and in this battle, Sony was the clear winner, Microsoft was second place, Nintendo trailed in third. Until 2006, the second war was started, and the ranking was changed by Nintendo’s new strategy. The president of Nintendo, Satoru Iwata, identified the potential threats in the Japanese video game market which was shrinking. The reason due to the existing game was too complicatedly and complexly to play, which require players spend more time and higher controlling skills. As the result, a lot of players left and stop to play the kind of the game. While Microsoft and Sony continued with their previous strategy of increasing the computing power of their newest products and adding a more impressive graphical interface; Nintendo modified their strategy, which reaches to non-gamers in order to create a new market. It developed simpler games, which targeting all customers, irrespective of age, gender, and gaming experiences. Their games only need few minutes to set up and play; plus their motional controller and create the new game area which connects the video game to health and exercises. In addition, Nintendo was focusing on characters rather than special effects on the consoles; they have high competitive advantage on consoles selling prices. As the result in the new battle, Nintendo is clear winner and has the highest sales in all over the world. However, in 2008, they bring up the new problem to challenge the video game industry, which the WiiWare, Wii users can freely download new games from independent developers. Currently, Nintendo is facing the situation, which in short term, the sale of consoles...

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