Nintendo is one of the three largest video game companies, founded in 1889 and based in Kyoto, Japan. It has a workforce of around 5,000 employees and operates in Japan, Americas, and Europe. Nintendo's vision is to create products that put smiles on people's faces. In recent years Nintendo has experienced declining profits and demand for its consoles like the Wii and handheld systems like the DS, as competitors like Sony and Microsoft have released more powerful systems and Nintendo has struggled to adapt classic games to new platforms. However, Nintendo maintains brand loyalty and opportunities exist in expanding online gaming and penetrating new markets.

1. RAKESH
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2. Nintendo in few words
• One of the three largest video game companies
• Workforce ≈ 5,000
• Based in Kyoto, Japan
• Foundation: 1889
• Three large markets: Japan, Americas and Europe

3. The industry
Consoles Games
Accesories

4. Company Profile
• Industry(s): Video games, Home
Entertainment Gaming Systems,
Portable Gaming Systems.
• 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
President/ CEO of Nintendo.
COMPANY PROFILE

5. Financial
20000000
18000000
16000000
14000000
12000000
10000000
8000000
6000000
4000000
2000000
0
Blue-2011
Red-2012
Green-2013
COST(000's USD) SALES(000's USD) TOTAL(000's USD)
COMPANY PROFILE

6. Future Plans
COMPANY PROFILE
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

7. Demand
• 86.01 million Wii systems sold (March 31st 2013)
• 146.42 million DS hand held systems sold (March 31st 2013)
• 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
THE MARKETPLACE
Top 4 selling games for Wii:
• Wii Sports
• Wii Play
• Mario Kart Wii

8. Main Competitors
Sony Microsoft
THE MARKETPLACE

9. Internal Conclusion
• Nintendo Profits to 2/3 in the last year
• Experiencing price drops for products lower than expected
demand
• Low stocks show Nintendo's failure to impress and appeal
to investors
• 3D features many impressive abilities such as 3D visuals
without use of glasses, and variety of features included in
device previously excluded in Nintendo handhelds
• 3D 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

10. 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 (2013)
• Lose in sales in Europe/Japan/USA for
hardware and software
THE MARKETPLACE

11. Outside of the Marketplace
THE BROADER
ENVIRONMENT
Potential Opportunities and
Advantages
Potential Threats and
Disadvantages

12. 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

13. 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
THE BROADER
ENVIRONMENT

14. Analysis Conclusions
•Prestige of Nintendo name
•Brand loyalty of customers
•High demand
•Worldwide availability
•Multi-play software and hardware
•No patents on motion sensing
software
•Wii only gaming console of its
generation with no hard drive
•Lack of third party presence
capability
•Quality third party support
•Focus more development in
online gaming
•Growth of market size
•Penetration of new markets in
Middle East, Europe, and Asia
•Price drops from competitors
•Software developers abandoning
Wii software development due to
low profit projections

15. 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

16. THANK YOU