Strategy and Innovation for Nintendo


Published on

The task was to present a 15 slides strategy document for a declining company to present relevant innovative solutions that could potentially disrupt its industry and refine the whole brand experience.

Published in: Entertainment & Humor, Design
  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Strategy and Innovation for Nintendo

  1. 1. - A Case for Change By Mathieu Lacaze June 19th 2013
  2. 2. Through its history, Nintendo never stopped to amaze its customers. It introduced new ways of playing and created legendary characters that lived along every console generation. A historic disruptor 1 Zelda Mario Pokemon Nintendo 64 Wii Wii FitGameboyNintendo NESDonkey KongGame & Watch 80 85 90 1000
  3. 3. A supremacy in decline Nintendo is currently loosing two battles at the same time Consequence: The company lost $366 million over 2012 Its portable market is being eaten by Smartphone gaming. It failed to engage customers with its anticipated next-gen console launch. 2 Source: Flurry Analytics Bob Summerwill’s tweet - Electronic Arts developper
  4. 4. An obsolete business model 3 Nintendo carries very harmful beliefs that don't allow to make a quick shift to wealth. They still think their competitors are only Microsoft and Sony. They still think that innovation is only about graphics and game controllers. They still bet on a new generation of console to bring innovation and new incomes. They rely on old and dusty cash-cow games (Mario, Zelda…) but don’t create new licenses. They think their customers are the same while these grow up and new ones come. They still think that video games are stored on CDs and bough in physical shops. They still apply the same methods of the past because it worked like that and not otherwise.
  5. 5. Gaming is now universal 4 Gaming is part of our society. People play at any age, everywhere, any time, on any device. «Computer and video games have reached a critical mass. Today, nearly every device with a screen plays games, providing online and offline interactive entertainment experiences for a wide and diverse population Michael D. gallagher, President Entertainment Software Association» The average of US household owns at least one dedicated game console, PC or Smartphone Gender of game players 30is the average gamer age Entertainment Software Association - 2012 Report
  6. 6. The future is already here 5 The industry's disruption has already started in different parts of the value chain. The development process It is more opened to new entrants. The game consumption From one physical product only to digital on-demand downloads. The gaming experience It now interacts with your body’s reaction.
  7. 7. The development process 6 Creating a game has never been as accessible as today. Open source and crowdsourced platforms allow you to create your own game or your own gaming device. Funder Kickstarter A service to raise funds for creative projects that has already pledged 100$ million for games. System Android An opened ope- rating system al- lowing you to create games for portable devices. Device Ouya An opened video game console for Indie developers running with An- droid operating system. Controller Makey Makey An invention kit that transforms any object into a touchpad.
  8. 8. The game consumption 7 We don't buy games the same way as 10 years ago. Today more purshases happen online and broadband internet helps to increase new ways consumption. Freemium consumption: Those games in the cloud allow people to have forfeited consumption. Gamers try for free and pay if they want to discover more. Streaming distribution: Games are stored in the cloud and people order them through online streaming plat- forms. So do we still need to buy a console ? Entertainment Software Association - 2011 Report
  9. 9. Gaming experience 8 Video games aren't anymore about a controller and a box. The interaction they offer with people become closer to real-life movements and allow a unique experience You are part of the story: Via augmented reality, You are now directly in- tegrated in the story and the reproduction of your movements on the screen makes it even more real. It is more than a game: Thanks to the accuracy of the gaming devices, edi- tors now use them also to improve the way we inte- ract with our entire world. (click on the video)
  10. 10. Move or die: Worst scenario 9 So if it doesn’t embrace the change Nintendo will disappear soon A disruptive example that will make Nintendo’s devices obsolete: Imagine that fiber connection and 5G become mainstream thanks to Google. The Samsung Smart Tv replaces our old LED screens. In order to play, gamers will connect their Android phone to the TV Theywillstreamagameonthe screen that will be controlled thanks to the touch screen of their Smartphone and their body moves on the camera.
  11. 11. A case for change is needed 10 Nintendo needs to focus its strategy on their customer experience in order provide them a unique added value. From... “We sell consoles/games” (product focused) To... “We enable an infinite amount of interactive experiences” (Customer experience focused) To fullfill this new strategy, some parts of the Nintendo’s value chain need to be redefined. Development Consumption Interaction
  12. 12. Redefine the developing process 11 Waste: Game console are closed to indie developers and risk-takers. Introduce a complete game development kit opened for every creative mind and let the customers create their games. Recommendation #1: Open Your World What: - Nintendo opens its doors to indie developers with an open-source console. How: - By partnering with Android and let everyone develop games using Nintendo’s characters or others. Goals: - Make Nintendo the most indie-friendly platform for de- velopers and allow game editors to come up with new innovation and take fewer risks. - Increase gaming innovation and let people create inte- grated gaming experiences thanks to Google products. (maps, youtube, music...) Recommendation #2: Everyone is creative What: Make it easy for everyone to come up with a nice ga- ming concept and develop it quickly. How: - Create a simple programming platform that doesn’t re- quire to be a coding expert to come up with a nice result. - People can also modify existing games. Goal: Don’t restrain the creativity to an elite and let the world express their creativity. (from 0 to 99 years old.)
  13. 13. Redefine the consumption 12 Waste: Paying 50£ for a game today is ridiculous. Don’t let people make long-term investments in your games but instead let them pay as they play. Recommendation #3: Snack gaming What: Nintendo allows customers to play all of their games through a monthly paid suscription. Then, it lets them dig into the ones they prefer with free or paying upgrades. The game is graduated according to your involvement into it. How: Nintendo introduce an online streaming platform where all of their games are available with a light version. Extended content is dowloaded for free or through micro-transactions. It lets developers decide where the free barrier stops. Goal: Games become like snacks that you pick as you prefer. It lets the choice for customers to determine what’s the best experience they want to live.
  14. 14. Redefine the interactive exp. 13 Waste: The way we play and interact with gaming devices hasn’t changed since 30 years. Go beyond this system of gamepad and console and open the gaming kingdom to the world. Recommendation #4: Your environment is your controller What: Nintendo partners with Samsung to create connected sensors/objects that Interact with your environment and make it more connected. How: Introduce some Nintendo controllers that can be connected everywhere to any device. (smartphone, TV...) Example: A foldable controller/sensors that can be stuck to any object (clothes, lamp, ball, Sword...) or person. Goal: Your environment becomes the controller. People will start not only interacting with these controllers for games but they will start using them for other purpose. (Education, Medicine)
  15. 15. A Redefined value model 14 The experience will be redesigned to get customers closer to Nintendo's new desired outcome. Customer experience Development : Customers can create their own gaming experience and share it to the world. Consumption: Customers try and select which games are most suited for them. Interaction: Customers interact with their environment thanks to connected sensors/objects.
  16. 16. A Redefined business model Development : Customers can create their own gaming experience and share it to the world. Consumption: Customers try and select which games are most suited for them. Interaction: Customers interact with their environment thanks to connected sensors/objects. 15 Nintendo will take a percentage to editors on every paid upgrade bought by customers. Nintendo will collect money though the mon- thly paid subscription. Nintendo will sell de- vices that will be used by general public for multiple purposes. With new customers added value, Nintendo will drag more profit from their new services.
  17. 17. Mathieu Lacaze: @Mathieulcz Thank You
  18. 18. References: Entertainment Software Association - 2012 Sales and demographic and usage data: Entertainment Software Association - 2011 Sales and demographic and usage data: Flurry Analytics and estimates, The NPD Group: in-portable-gaming/