Nintendo

Power Play (A)

Nintendo In 8 – bit Video Games

Evolution of Video Games Industry (1989-1991)

* In late 1980’s in Japan, Nintendo launched a Family Communications Network System, by 1990 a total of 130,000 households have joined the network. Services such as stock brokerage, home shopping, online banking, rail and airline reservations, emails were offered.

* Computer games had proved to be a limited business, Electronic Arts finally signed up with Nintendo in 1990.

* Nintendo’s rigid licensing terms were alleged to create monopoly in the video game industry ( Namco’s head response to the license renewal terms)

* Manufacturing was outsourced to abridge the demand and supply gaps

* The licenses under NES scheme increases up-to 100 by the year 1991, a meager 10% of the software development was in-house.

* Game characters were licensed to a wide variety of business including, TV shows, cereal packets, T-shirts, board games, toys etc.

* Video games related magazine came into existence with a strong reader base.

* Attempts were made to convert the overall video game experience more interactive – Consumer hotline and in store interactive displays were established.

* Nintendo Seal of Quality became a trademark of reliability in video game market, robot controlled distribution center were opened.

* Scarcity of games created by Nintendo became pronounced. Shortage created uproars from retailers, game developers and even members of congress. Nintendo was alleged to create a monopoly in the US video games market.

* Nintendo became the uncontested market leader in the US video game industry with a market share of about 90%

* Two school of thoughts emerged – one alleged video games for creating vidiots while other were of the view that it is enhancing the problem solving skills and memory.

* The proposal of setting up a network linking American households that had NES was dropped and the joint venture with AT&T was...