Nintendo's Strategy in 2009

Maggie Yost

MANG 497-04

Assignment #1

Nintendo’s Strategy in 2009

What is the present strategy of Nintendo?

Nintendo started to fall behind in the innovation scene when Microsoft came out with the Xbox 360 and Sony came out with the latest version of their Playstation – Playstation 3 (PS3). Nintendo’s Wii game console received many critiques from video game analysts and writers who were shocked with all of the Wii’s limitations. However, Nintendo’s CEO Satoru Iwata, agreeing with the critiques that the Wii did not offer the best quality graphics or include an extensive array of capabilities and features, stated he did not wish to speak of the Wii as a “next generation” game console. Instead, Iwata preferred to look at the Wii as a game console that would provide a less intimidating gaming experience for more casual gamers. He wanted to build on the company’s success that came from the handheld Nintendo DS video game player.

Nintendo’s strategy for the Wii was to concentrate on a daringly different video game console. Although this was looked at as very risky, it did exceptionally well in the market and surpassed the PS3 and Xbox 360, becoming the market leader in sales for seventh generation game consoles.

What are they doing right/wrong?

Nintendo entered the market very aggressively. Nintendo launched the Family Computer home video gaming system in Japan in 1983 with the adaptations of many of their most popular arcade games. In 1985, Nintendo introduced this system in the United States as the Nintendo Entertainment System. Its first game, the home version of Super Mario Brothers arcade game, won Nintendo the spot of top seller. This was a magnificent move on Nintendo’s part because it introduced the company in the United States as an instant household name no one could forget. The popularity of Nintendo continued to grow with the introduction of the first hand held gaming console.

Today, Nintendo continues to make their name known....