Nintendo Compay Market Analysis


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Nintendo Compay Market Analysis

  1. 1. Patrick Walter Victoria Cameron Conner Cameron Brandon Martel
  2. 2. 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 IwataCOMPANY PROFILE President/ CEO of Nintendo.
  3. 3. Financial 20000000 18000000 16000000 14000000 12000000 2011 10000000 2010 8000000 2009 6000000 4000000 2000000 0 COST(000s USD) SALES(000s USD) TOTAL(000s USD)COMPANY PROFILE
  5. 5. 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 viewingCOMPANY PROFILE
  6. 6. 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 WiiTHE MARKETPLACE
  7. 7. Main Competitors Sony MicrosoftTHE MARKETPLACE
  8. 8. 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/gamblingTHE MARKETPLACE
  9. 9. 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 sensorsTHE MARKETPLACE
  10. 10. 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 appealTHE MARKETPLACE
  11. 11. 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 Nintendos 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 softwareTHE MARKETPLACE
  12. 12. 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 softwareTHE MARKETPLACE
  13. 13. Outside of the Marketplace Potential Opportunities and Advantages Potential Threats and DisadvantagesTHE BROADERENVIRONMENT
  14. 14. 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 issuesTHE BROADERENVIRONMENT
  15. 15. 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 TsunamiTHE BROADERENVIRONMENT
  16. 16. Analysis Conclusions•Wii and DS relatively low cost •Wii’s controller joystick liabilityhardware/software •Limited selection of software•Unique use of motion detection in Wii •Wii and DS hold losing in thecontroller online software war•Focus on intuitive gaming experience for •Wii’s lowest quality graphicsall 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 selectionEast, Europe, and Asia •Software developers abandoning Wii software development due to low profit projections
  17. 17. 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 inonline gaming
  18. 18. 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 expansionSWOT