SlideShare a Scribd company logo
Brian Howard (brihow)
Nintendo… there’s no play like it
Problem
● People need something to do
Products (Recent)
● Home Consoles (Wii, Wii U, Switch)
● Handheld Consoles (DS/3DS and variants)
Financials
Profitable? - Kind of
2013 - $75.5 million net income
2014 - $225 million net loss
2015 - $348 million net income
2016 - $146 million net income
Revenue has been decreasing
Yen(¥)
Business Model
● Advertise to all types of people
● Quality content over hardware, “Seal of Quality”
● Sometimes even sell console at loss (Wii U, to name one)
History
1889 - Founded as a card company
1963-1968 - Multiple business ventures, all failed but toymaking
1980 - Game & Watch
1983-1985 - NES basically saves video game market from crash
1989 - Game Boy, handheld dominance begins
2004 - Nintendo DS sells 154m+
2006/2012 - Wii sells 100m+, Wii U bombs
2016 - First mobile game
2017 - Switch - success or failure - tbd
Secret Sauce
● Family friendly, age unrestricted fun
● “Simplicity can be a disruptive innovation”
● Appease casual and “hardcore”
Role
● Sometimes a shaker, sometimes… not so much
● Innovative design, for better or worse
Competition
Handheld Target
Audience
Home Console
Specs
Console
Starting Prices
Nintendo Yes Everyone Low Lower
Sony Yes Selective High Higher
Microsoft No Selective High Higher
Prediction - Neutral
● Huge cash reserve (some $4+ billion)
● Haven’t really shaken anything recently, Switch tbd.
● History of success and failure
Sources
https://en.wikipedia.org/wiki/History_of_Nintendo
https://en.wikipedia.org/wiki/List_of_best-selling_game_consoles
http://blog.printrunner.com/nintendo-business-model/
https://finance.yahoo.com/quote/NTDOF
https://www.nintendo.co.jp/ir/pdf/2013/annual1303e.pdf
https://www.nintendo.co.jp/ir/pdf/2014/annual1403e.pdf
https://www.nintendo.co.jp/ir/pdf/2015/annual1503e.pdf
https://www.nintendo.co.jp/ir/pdf/2016/annual1603e.pdf

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