that of previous systems. When we look at the automobile industry, not every car is following the same evolutionary course. While some are trying to make faster cars, others are gathering public attention around the world with their hybrid engines. If automobiles can be used as a metaphor, our industry has always been trying to compete over horsepower, even though not all cars are made to compete in F1 races (Takeda, 2007). Here Nintendo has completely bucked the norms of what video game companies do. They have taken an extremely radical approach to the use of technology and software going in a completely and unexplored area. It has paid off tremendously for Nintendo and now Sony is attempting to use similar controller technology with their PlayStation 3 console. Furthermore, by making more friendlier and accessible games Nintendo and its developers do not have to worry about the ESRB or other rating organizations pulling games from the shelves or giving the company or the system bad publicity. IV Analysis of Outcome However, Nintendo damaged both their reputation and industry standing due to poor decisions in the 1990s and early 2000s they have made a complete turn around. Nintendo is using a mixture of innovation and classic strategies were able to regain
their industry leader position. The change in revenue alone is startling The article “Nintendo’s Winning Ways” states, “[Nintendo’s] latest annual financial results show a 77 per cent rise in profits – ¥74.3 billion (£310 million) from total revenue of ¥966.5 billion (£4 billion)” (Edge, 2007, ). However, Nintendo has felt constant pressure in both Japan and overseas from various hardware producers including NEC, Sega, and more recently Sony and Microsoft eventually they were able to regain a stable and positive financial standing. Though Nintendo is doing well now by utilizing the foremost in game control technology they have neglected a key area that gamers for decades have been concerned with, graphics. Nintendo has failed to significantly upgrade graphics or employ a wide variety of high definition technologies to their console. This in the long run may danger their position; however, for the time being they are doing extremely well. However, in hindsight they could have come up with a more competitive demand curve for their production since they are still currently facing shortages especially in the United States. V Conclusion Over the years, Nintendo has changed their focus and gotten off track numerous times. Every time Nintendo attempted to expand into a new industry, they were met with failure. Eventually they were able to find success both locally in Japan and internationally in Europe and the United States. However, just as they did in the past they strayed away form their core competencies. Nintendo often forgets its key agenda and every time they attempt diversification, it ends in disaster. By having a strong focus, Nintendo is and will be able to achieve success in the future. However, it
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- Spring '11
- Wii, Video game console, Nintendo, Nintendo Co.