Nintendo is a 122-year-old video game company with over 4,700 employees. Its vision is to create entertainment that puts smiles on people's faces. While the Wii and DS were highly successful, Nintendo's profits have fallen as demand has decreased for these systems. Nintendo faces competition from Sony, Microsoft, and Apple. It needs to focus more on online gaming and diversify its game selection to remain successful.
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Nintendo Company Market Analysis
1.
2. Patrick Walter Victoria Cameron Conner Cameron Brandon Martel
3. Company Profile
• Industry(s): Video games, Home
Entertainment Gaming Systems,
Portable Gaming Systems, MLB
Affiliate (Seattle Mariners)
• Number of Employees: 4712
• Number of years: 122
• Vision: ““Nintendo continues to
make efforts for the growth of the
home entertainment industry with a
mission that is ‘to pleasantly
surprise people and put smiles on
the faces of everyone involved with
Nintendo’." – Satoru Iwata
COMPANY PROFILE President/ CEO of Nintendo.
6. Future Plans
Nintendo Wii U:
•Next generation Wii
console featuring 6.2”
screen in controller
•Addition of second gaming
screen creates multitude of
entirely new video game
experience as well adding to
multiplayer gaming with
each player having a
different private screen for
viewing
COMPANY PROFILE
7. Demand
• 86.01 million Wii systems sold (March 31st 2010)
• 146.42 million DS systems sold (March 31st 2010)
• DS sales exceed PSP sales
• Demand for previously popular games such as Mario
kart, Zelda, and other games featured for the N64 have decreased
after being poorly readapted to new generation systems such as the
Wii
• Less demand for unknown/less popular gaming titles
Top 4 selling games for Wii:
• Wii Sports
• Wii Play
• Wii Sports
• Mario Kart Wii
THE MARKETPLACE
9. Sony
• Approximately 80% PlayStation 3
consoles sold use online game play
• PlayStation Portable offers array
uses including online gaming, TV
shows, and Movies
• PlayStation offers much larger
variety of gaming genres including
sporting, strategy, survival
horror, first person
shooter, arcade, action, adventure, f
ighting, puzzle and casion/gambling
THE MARKETPLACE
10. Microsoft
• Microsoft has a much larger spectrum of markets
outside of the gaming industry
• Xbox Kinect functions similar to Nintendo Wii
providing an easy substitute (Buyer power)
• Kinect has better reputation for gaming
experience out performing Wii’s motion sensors
THE MARKETPLACE
11. Apple
• Iphone 4, Iphone 4S, and
Ipad2 offer features such as
faster touch response better
graphics, and better
performance with new Dual
core A5 chip
• Apple Store has endless
quantity of games and
applications available
• Iphone’s wide diversity of
abilities attract a wider
scale of customers and give
it the All-in-one appeal
THE MARKETPLACE
12. Internal Conclusion
• Nintendo Profits to 2/3 in the last year
• Experiencing price drops for products lower than expected
demand (Nintendo 3DS)
• Low stocks show Nintendo's failure to impress and appeal
to investors
• 3DS features many impressive abilities such as 3D visuals
without use of glasses, and variety of features included in
device previously excluded in Nintendo handhelds
• 3DS lacks adaptation of previous games reducing gaming
experience
• Low battery life of 3DS and poor joystick liability of Wii
controller contributes to lose of customer loyality
• High cost for hardware and software
THE MARKETPLACE
13. Internal Conclusion
Take advantage of:
• 55% of gamers play on handheld systems
• Average age of gamers is 37
• Sporting/Action games are best selling genres
• 25.1 billion dollars spent on gaming industry
of that 15.9 billion is on software the rest on
hardware and accessories (2010)
• Lose in sales in Europe/Japan/USA for
hardware and software
THE MARKETPLACE
14. Outside of the Marketplace
Potential Opportunities and
Advantages
Potential Threats and
Disadvantages
THE BROADER
ENVIRONMENT
15. External Forces
Economic Forces:
•Nintendo’s sales are not at risk of fluctuations in the
economy and interest rates
•Low manufacturing costs gives Nintendo the ability to
lower prices if needed
Social-Cultural Forces:
•Groups of activist believe video games promote
violent behaviour in adolescence which may lead to
bans in some areas
•Other groups blame video games for obesity epidemic
and other health issues
THE BROADER
ENVIRONMENT
16. Forces
Environmental Forces:
•Environmental activist push manufacturers to use more
recycled resources and less plastics which Nintendo
currently uses for its hardware and accessories
•Nintendo’s appeal to such groups with games such as
Mario sunshine which is based around cleaning the
environment
Natural Forces:
• Gaming industry sees little effect from any natural forces
but Nintendo did see major slow down after the 2011
Tsunami
THE BROADER
ENVIRONMENT
17. Analysis Conclusions
•Wii and DS relatively low cost •Wii’s controller joystick liability
hardware/software •Limited selection of software
•Unique use of motion detection in Wii •Wii and DS hold losing in the
controller online software war
•Focus on intuitive gaming experience for •Wii’s lowest quality graphics
all ages on both Wii and DS card in its generation of consoles
•Losing potential customers with Wii
•Growth of market size
and DS low diversity of software
•Penetration of new markets in Middle
selection
East, Europe, and Asia
•Software developers abandoning Wii
software development due to low profit
projections
18. Analysis Conclusions
•Prestige of Nintendo name •No patents on motion sensing
•Brand loyalty of customers software
•High demand •Wii only gaming console of its
•Worldwide availability generation with no hard drive
•Multi-play software and hardware •Lack of third party presence
capability
•Quality third party support •Price drops from competitors
•Focus more development in
online gaming
19. Recommendations
• Push more focus into online game play
• If new products such as Wii U continue to fail
to impress consumers pull back focus to
handheld gaming (follow the numbers)
• Diversify game genres
• Continue worldwide expansion
SWOT
