Nintendo Case Study

Case Analysis Part 1 Introduction Case 7 of the school text championshipd Essentials of strategical Management looked at the pic mealy pioneer Nintendo. The title of the case is Nintendos Strategy in 2009 The current Battle with Microsoft and Sony and was written by Lou Marino and crack Sarrett. The case begins by describing how Nintendo faced honorable contest from Sony and Microsoft in the video spirited trade. As Sony had created the Playstation and Microsoft came out with the Xbox, Nintendo had taken a backseat in terms of new video racy consoles.Through the years however, Nintendo had created umteen usual devices used for drama much(prenominal) as the Nintendo 64 and legion(predicate) versions of the DS. As Nintendo watchful to release the Wii game system, more express that it lacked the brilliants and user experience that their rivals had and it appeared as though it would be a market flop. To the surprise of many critics and competing companies, the Wii was a abundant success setting records for total gross revenue.Currently Nintendo is sightedness reduced demand and reduced sales due to the recession but they pass to release new features and games and analysts say that the solo limitations of the system were the limitations of the purporter and the user- head for the hillsing most to truster they considered the possibilities endless ( ). Nintendos Strategy In its be terms years, Nintendos dodge was to bring video game experience most commonly lay out in public venues such as the Donkey Kong arcade game into the users home.This differentiation strategy proved highly self-made for Nintendo as they were the first to give the user an affordable manoeuvre console with many different games available for the Nintendo Entertainment administration or NES. This continued with the release of numerous versions of the Game Boy and Nintendo DS as users could take their games with them anywhere they went which was unheard of from riv als such as Sony and Microsoft at the time. As competition grew with Sony, Sega, and Microsoft, Nintendos strategy seemed to move towards a salute strategy. They began creating onsoles such as the GameCube to compete with magnetic disc operated consoles by their competitors but at a cheaper price. This move turned out to be unsuccessful for a number of reasons, the important one being their lack of graphic capabilities. From here Nintendo began differentiating themselves again. Nintendo set out to design a console that would revolutionize the track people represented games and the Wii was born. People that had never played video games before such as women and the elderly could now pay back games suited for them that were easy to understand and dramatic play to play.Users could play games that got them up and moving to erect a healthier lifestyle as well as interact with others. For Nintendo to be successful in the future, this differentiation strategy appears to be the best route to follow. Strategic Leadership The strategic leadership meet the Nintendo organization appears to be ahead of their time in some aspects. Although they are non coming out with consoles directly aimed at competing with that of Sony and Microsoft, they are however releasing parapraxis edge technologies into their products.From the dual screen on the DS which allows users to sync up with others to play head to head to the Wii with a Bluetooth emotional hold inler, Nintendo is constantly changing the video game industry. The marketers at Nintendo understood that too many powerful consoles cant coexist because they would eventually lead to their own collapse ( 375 ). By creating something exclusively new for users that rivals arent reaching, Nintendo was able to gain control of a relatively untouched market segment. Nintendo is known for its differentiation from the normal gaming systems and this attracts a completely different cluster than Sony and Microsoft.Stakeholders i n the Nintendo company know this and this is what in the long run attracts them to their organization just as the stakeholders for Sony or Microsoft are attracted to the strategies of competing to be the best in terms of graphics and realistic gaming experience. If Nintendo was to change and try to compete on the same levels as Sony and Microsoft, they would more than credibly lose many of their investors because this differentiation is what keeps Nintendo rank among the top gaming companies.