1. NINTENDO Competitive Analysis and Strategic Recommendations Prepared by Sudhish Subhash | Theron Korda | Mridul Katial | Sumit Deo M-290A EDGE : FTMBA10 - PaulMerage School of Business

5. Portable Gaming Platform – Nintendo DS

7. Controller free

8. Screen free - 3DTime 3D presentation techniques non bound by CONTENT – games, music, shows Compete against non-consumption Next?? Consumerism and Socializing Time Non-consumers or non-consumer context Vision Company improvement trajectory

11. 63% of parents feel that video games were a positive addition (2008)Current State - Industry

12. Vision Current state Board of Directors Employees Investors Conclusion Opportunity Insights Competitors & Substitutes Mega Global Forces Consoles: PS3,Xbox360 PC Games Handheld: iphone, PSP, Gameboy, DS lite Social Gaming: MMORPG, Xbox live, PS network Home Entertainment: Movies, Songs, Netflix, Redbox Upcoming: Microsoft’s Project Natal, Health vault Interactive education: languages, architecture, environmental issues, exploration Health Virtual Shopping Social/interactive gaming Online dating Gesture based interaction Home entertainment E-readers, file management Current State - Industry

14. Focused on what matters in having fun rather than what is looking or having cutting edge

15. Changed the way how game was played: from pushing buttons to moving body

16. Used game for something more than game such as fitness and family entertainment to make this other activity funValue Proposition

19. Built a lot of brand equity over the past 30 years (sold 49 million Super Nintendo Entertainment System consoles in the 90s)

20. Captures a broader demographic than other console makers

21. Solely focused on gaming, unlike competitors Microsoft and SonyCurrent State - Nintendo

23. Not known for sophisticated graphics

24. Popularity of the Wii seems to have peaked

25. The hierarchical nature of the company may cause it to not respond quickly enough to the threat of an insurgent Current State - Nintendo

27. Leverage first mover advantage, bargaining power and easy customer recall

28. Utilize global presence and geographical diversification to reduce business risk

29. Reduce dependency on suppliers

30. Balance hardware and software focus

31. Diversify range and appeal to serious gamers

32. R&D to include sophisticated graphics without significant costs

33. Adopt a flat structure to ensure faster response to threat of insurgentsCurrent State - Nintendo

36. Online gaming continues to expand at a breakneck pace

39. Focus on Online gaming segment

40. Incorporate Social Networking games

41. Target ‘mobile’ gaming segment

42. Leverage the power of home networking and entertainment delivery technologies

43. Integrate Wii with basic activities (Extend offerings like Wii Fit)

44. Online promotion of specific games

45. Manage shorter product lifecycle efficiently

46. Adapt to changes in consumer preferenceCurrent State - Nintendo

48. Product : Project Natal

49. Place : Target Advertisers

50. Price : Competitive ($150)

51. Position : Casual GamersAssumptions Realism – More effective representations and interactions in 3D Hardware-less controls Capabilities Strengths: Brand awareness, Loyalty, Presence Weaknesses: Manufacturing costs Competency: Operating Systems/ Computing Vision Current state Board of Directors Employees Investors Conclusion 4 Corner’s Analysis for Insurgent (Microsoft) Current State - Competitor

53. Ensure that Nintendo 3DS (pipeline) is positioned correctly

54. Partner with 3D holographic companies (Musion)

55. Partner with Cisco (Telepresence)

56. Acquire smaller players with a potential to disrupt1UP Current State – Nintendo Vs Competitor

57. Partner with other companies Execute Execute Build in-house Vision Current state Board of Directors Employees Investors Conclusion ? SHORT-TERM STRATEGY A Y N Y N Strategy

58. Vision Current state Board of Directors Employees Investors Conclusion SHORT-TERM STRATEGY B TouchscreenWii - One Controller, Multiple Uses Strategy

59. Vision Current state Board of Directors Employees Investors Conclusion SHORT-TERM STRATEGY C YOO can control your emotions EMOTION SENSING Strategy

60. Vision Current state Board of Directors Employees Investors Conclusion SHORT-TERM STRATEGY D Cater to a broader demographic From ages 5-95 yrs Strategy

61. Vision Current state Board of Directors Employees Investors Conclusion MILESTONES Strategy

62. Vision Current state Board of Directors Employees Investors Conclusion LONG-TERM STRATEGY Strategy

64. Gaming Focus: Nintendo is dedicated to games, while competitors worry about broad high tech and electronic sectors.

65. Strength of Brand: Customers know that they can expect quality and creativity from Nintendo.

66. Scale: Nintendo has the capability to launch the next gaming revolution on a global scale.

67. Sustain: Nintendo must continue to build

68. on its success to maintain market share Employees

70. Knowledge Base: Key individuals that brought us Wii and Nintendo DS are assigned to the project.

71. Research & Development: Multiple R&D professionals will be summoned to experiment and collaborate on the project, and continue the rich development tradition of Nintendo.

72. Resources: The executive team is committed to providing the necessary capital, both human and monetary, to make the next gaming venture as successful as the last.Employees

74. Infrastructure: Communications providers are crucial participants as Nintendo needs to secure network capacity.

75. Content Developers: Nintendo needs allies in independent content providers that share the vision of the possibilities of the new gaming platform.

76. Manufacturers: Outsource production to best-in-class gaming hardware manufacturers.

77. Financial Support: Communicating value to ensure continued financial backing from investors and lending institutions is key.Employees

78. Vision Current state Board of Directors Employees Investors Conclusion Our Goal – You are the game

79. Vision Current state Board of Directors Employees Investors Conclusion Its perfect time to launch the next big innovation NINTENDO YOO!! Financial Health Analysis

80. Vision Current state Board of Directors Employees Investors Conclusion Nintendo transformed the game console market in 2007 with launch of Wii. Sales jumped 104% over an year. We have reclaimed our throne as #1 Console producer. Revenue Analysis - Retrospect

81. Vision Current state Board of Directors Employees Investors Conclusion 35% 40% Over 75% of our installed base for new products are in the US and Japan, with our diversification strategy we shall target emerging markets and markets with higher disposable income for the simultaneous launch of Nintendo YOO Revenue Channel Analysis - Retrospect

82. Vision Current state Board of Directors Employees Investors Conclusion Even with conservative estimates (50% of Wii figures) accounting for saturation and increased competition we see a CAGR of 40% Revenue Forecast – Nintendo YOO

83. Vision Current state Board of Directors Employees Investors Conclusion Nintendo enjoys the lion’s share of the console market Strategic Advantage: Highest Installed Base will provide a huge advantage to convert Wii ‘Fan Base’ into YOO customers. Nintendo DS and Gameboy Advance – 42% of revenues Strategic Threat: Decline in sales of the Handheld account for 45% loss in revenues Threat: iPhone, iPad Competitive environment http://www.edge-online.com/news/ps3-takes-31-per-cent-market-share-in-q1-report

85. Cross Functional Steering Committee

86. Timeline of >18 and <30 MonthsKEY FEATURES 1. Centralized team in each geography (to understand growing demographic trends) 2. Steering committee will assure delivery/termination (no premature swap ins/out) 3. Lucrative product lines will be adopted globally (Technology has no barriers) Innovation Model http://www.innovationtools.com/PDF/Integrated_Innovation_PLI.pdf

88. Dynamic Marketplace

89. Technological Innovations

90. Cloud computing

91. Transition towards the new normalConclusion