Case 5 - MGT429 Case Study 5: The Home Video Game Industry...

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MGT429 Case Study 5: The Home Video Game Industry The home video game industry started to take off in the early 1970s with the development of the Atari 2600. For the next several years, Atari lead this burgeoning industry in sales due to its low-cost system and its adoption of popular arcade-style games such as Pac Man and Space Invaders. However, by the early 1980s, the home video game industry was declining due to the poor nature of the last generation of Atari games. Many of the key players in the industry folded. With Warner selling off what they could of Atari, many believed the home video game industry was dead. However, a company out of Japan believed that the home video game industry could once again become a profitable industry. Nintendo was able to capture value in the home video game industry through a strategic approach that included low costs, an exclusive and restrictive licensing program, and good gaming options for its system. Yamauchi wanted Nintendo to offer the
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Case 5 - MGT429 Case Study 5: The Home Video Game Industry...

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