Executive SummaryThis case tells the story of Nintendo, a company which had been leading the gaming industry foryears and how it suffered from two major issues:1. A new disruptive innovation – mobile gaming 2. Fast changing environment and customer preferencesThese two led to the major problem, the drop in sales and profits.Key Facts and Assumptions of the CaseMajor points:Founded in 1889 by Fusajiro Yamauchi as a playing-card manufacturer, Nintendo eventually became the first company to manufacture and sell Western-style playing cards in Japan.Seeing the largest card company in the world take up only a small office, Yamauchi realized that to continue growing revenue, Nintendo would have to expand beyond playing cardsNintendo Co., Ltd., and began to pursue a number of new ventures including instant rice, love hotels, and taxis. All of these pursuits ultimately failed, and the company finally shifted focus to a more logical expansion category: toys.Nintendo struggled to produce new toys fast enough to keep up with the constantly shifting tastes and demands of Japanese childrenOne day, upon inspecting a card factory, Yamauchi noticed a mechanical toy that one of the conveyor-belt maintenance engineers, Gunpei Yokoi, had built for fun. Yamauchi pulled Yokoi off of maintenance and made him a product manager in Nintendo’s new games division.