The economic status of the video game companies was threatened by the high cost of developing the games. A lot of money had to be invested; it cost about US$12 million to US$20 million to successfully develop one game. b. Physical Nintendo is a Japanese company that has spread wings across the whole world. The home population gives the company a large market for its video gaming gadgets before exporting them to the US and Europe which are its other market strongholds. However, the home market is under stiff competition from fellow Japanese electronics company Sony. c. Demographic Human populations have been changing from time to time due to various factors; social, political and geographical. This changes in demographics have also affected the video games industry creating threats and opportunities at the same time. d. Political/Legal
CASE ANALYSIS OF NINTENDO 6 Nintendo is registered locally in Japan and also internationally in all the countries it conducts business. Nintendo follows all the rules pertaining to gaming in developing games which has facilitated its entry to many countries of the world. This has helped expand Nintendo’s market. In the US, for example, the senate mandated the Entertainment Software Ratings Board with the responsibility to gauge the content of games (Ferguson, 2013). e. Technological environment The video game industry is wholly based on technology with technological advancements playing the biggest role in the improvement of the games developed. Technological advancements create room for improvements for existing gadgets. Seizing and applying new technology is key in the highly competitive business. The success of Nintendo’s DS and Wii consoles was based on better technology then the competitors’ consoles. The technological environment creates an opportunity for improvement while on the other hand causing a challenges due to rampant and unpredictable changes in technology. f. Social-cultural environment Globalization has resulted in homogenization of habits and lifestyle due to the interaction of people from different cultural and social backgrounds. This has reduced the necessity for customizing product for each and every target market. This has further opened up the market for Nintendo although the company has been reluctant to release consoles and game software compatible with all markets. g. Global business environment The global business environment has been empowered by technological advancements in information and communication which has been the driving force behind globalization. The global business environment has facilitated the entry of internal companies in many parts of
CASE ANALYSIS OF NINTENDO 7 the world. A person can place an order online and have a console shipped from oversees if it is not available locally. This has empowered business.
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- Summer '19
- Video game console, Nintendo