Part-I Summary of the Case Study The case study revolved around the gaming industry revolution and competition. The case study generally focuses on the Nintendo Corporation, which was a major market shareholder in gaming industry, strategy to compete with its competitors and bring in a new game counsel which could win more market share and outperform the competitors. The case begins with history of gaming industry, market leaders and competitions and how the gaming industry was revolutionized. Video games have been around since the early 1960s. In 1962 MIT students Steve Russell, Martin Graetz and Wayne Witaenem developed Spacewars, the first video game. Spacewars marked the first time that computer graphics were used in a game. Then a U.S.-based Atari launched a simple table tennis game called Pong in the United States, which could be hooked up to a TV set.7 It was a hit. Japanese companies took notice. In 1977, Nintendo entered the market by releasing aa Pong knockoff called Color TV Game 6 and sold more than 1 million units. The products like Game and Watch, Game Boy and Famicom were huge success with the last selling 62 million units worldwide. At his time, Nintendo was the key market leader with the greatest number of sales and customers. Key to Nintendo’s success was the company’s control over third-party software developers. Nintendo encouraged third-party developers to create games for the wildly popular NES, as long as they agreed to produce no more than five games per year, and not produce titles for any other console system for two years. Nintendo began to face strong competition from Tokyo-based Sega, which released a 16-bit console called Genesis in 1989. Increasingly, games and game consoles began to compete on underlying technological advancements, enabled by exponential advances in computing technology. Sony entered the market on the software side with its Famicom game called Captain ED in 1989. Sony started to develop its own CDROM-based console, and in 1994 released the 32-bit PlayStation. The PlayStation’s superior system performance, affordable price, and wide array of games made it a new success in the market and this marked the start of a new era for the gaming industry. And then PlayStation 2 made Sony the market leader. Meanwhile, Microsoft was attempting its own aggressive push into gaming and launched the original Xbox in 2001. The Xbox went head-to-head with Sony’s PlayStation 2. To cope up the competition, in 2001, Nintendo released the GameCube console while adequate for basic 3D games and Mario Bros., the hardware failed to measure up to the PlayStation 2 or the Xbox.
By the early part of the 2000s, video games were firmly entrenched in youth culture. In 2002 the founding CEO made Iwata, an experienced game developer and former president of game studio Hal Laboratory, president of Nintendo in 2002. After becoming CEO, Iwata pushed for several changes in Nintendo’s organizational culture. First, he asked Nintendo executives to think about what made initiatives succeed or fail. This emphasis on understanding led to improved
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- Fall '17
- Aaqib nawaz
- Wii, Video game console, Nintendo, Nintendo Corporation