Running head: NINTENDO’S STRATEGY IN 2009: THE ONGOING BATTLE WITH MICROSOFT AND SONY Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony Khanh Nguyen Kim Pham My Ai Quan SM-DH39ISB-1 Strategic Management March 24 th , 2016 Dr. Nguyen Duc Tri 1
NINTENDO’S STRATEGY IN 2009: THE ONGOING BATTLE WITH MICROSOFT AND SONY Introduction This report will analyze the case study: “Nintendo’s Strategy in 2009: The Ongoing Battle with Microsoft and Sony”. The first section is the case summary of game industry and Nintendo Company from the established time to mid 2009. Following is the SWOT analysis to explore the internal and external factors affecting the Japanese game company. Finally, the writing will discuss the Nintendo’s strategies by providing answers to given questions in the syllabus. Case Summary The video game industry has experienced the non-stop growth through a long period of time and officially gained a huge attention when the three big innovative companies appeared. The battle for market supremacy in the game console segment is progressively intense as Nintendo, Microsoft, and Sony consistently put their effort in improving their products to gain a more sustainable position in the market. In 2006, the battle-array seemed to lean to Nintendo as Wii was first introduced and received positive feedbacks from customers, defeating PlayStation 3 (Sony) and Xbox 360 (Microsoft). In June 2009, the whole industry dealt with the economic recession causing 38% fall in console sales compared to June 2008, which attacked the profit of the three big companies. Company History and Background Nintendo was originally founded in 1889 to produce handmade Japanese playing cards, later expanding to other types of games in 1963 and becoming known as the Nintendo Company Ltd. The company was famous for Donkey Kong, FamiCom but not 2
NINTENDO’S STRATEGY IN 2009: THE ONGOING BATTLE WITH MICROSOFT AND SONY until the release of game consoles and handheld game systems did Nintendo receive much attention of customers, namely Nintendo Entertainment System (NES) (1985); Game Boy (1989); Super Nintendo Entertainment System (SNES) (1991); Nintendo 64 (1996); Game Boy Advance (2001); GameCube (2001); Nintendo DS (2004); and Nintendo Wii (2006). Nintendo’s Handheld Game Systems As the Nintendo’s first handheld game device, Nintendo Game Boy proved its preeminence by dominating the market since its release. Following, many new versions of Game Boy were introduced with updated features: Game Boy Pocket; Game Boy Light; Game Boy Color; Game Boy Advance; Game Boy Advance SP; and Game Boy Micro. Other handheld system was Nintendo DS (2004). It gained a remarkable position in the market due to the company’s marketing effort, the growing demand, and its modern features: clamshell casing, “dueling” screens, the lower touch-sensitive LCD screen pressed with a styles, built-in micro, and Wi-Fi capability. Nintendo DS had achieved approximately 70% market share of all handheld video game players worldwide, making it the best-selling handheld game system during that time.
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- Video game console, Nintendo, Nintendo Company, Nintendo’s strategy