Nintendo Case Study

vitrine Analysis Part 1 Introduction Case 7 of the text titled Essentials of Strategic Management looked at the video game lead up Nintendo. The title of the case is Nintendos Strategy in 2009 The Ongoing Battle with Microsoft and Sony and was write by Lou Marino and Sally Sarrett. The case begins by describing how Nintendo faced serious contestation from Sony and Microsoft in the video game commercialise. As Sony had created the Playstation and Microsoft came unwrap with the Xbox, Nintendo had taken a backseat in terms of new video game consoles.Through the years however, Nintendo had created more popular devices used for frolic such as the Nintendo 64 and numerous versions of the DS. As Nintendo prep atomic number 18d to liberation the Wii game arrangement, umpteen said that it lacked the artistic creation and user experience that their rivals had and it appe atomic number 18d as though it would be a market flop. To the surprise of many critics and competing companies , the Wii was a huge success setting records for come up sales.Currently Nintendo is seeing reduced demand and reduced sales due to the box but they continue to release new features and games and analysts say that the only limitations of the system were the limitations of the designer and the user-leading most to believer they considered the possibilities endless ( ). Nintendos Strategy In its betimes years, Nintendos dodge was to bring video game experience most usually found in public venues such as the Donkey Kong arcade game into the users home.This differentiation outline proved highly successful for Nintendo as they were the first to give the user an affordable free rein console with many different games available for the Nintendo Entertainment System or NES. This continued with the release of numerous versions of the Game Boy and Nintendo DS as users could take their games with them anywhere they went which was unheard of from rivals such as Sony and Microsoft at the time. As competition grew with Sony, Sega, and Microsoft, Nintendos strategy seemed to move towards a cost strategy. They began creating onsoles such as the GameCube to compete with dish aerial operated consoles by their competitors but at a cheaper price. This move turned out to be unsuccessful for a number of reasons, the main one creation their lack of graphic capabilities. From here Nintendo began differentiating themselves again. Nintendo set out to design a console that would revolutionize the way people played games and the Wii was born. People that had never played video games before such as women and the elderly could straightaway find games suited for them that were easy to understand and fun to play.Users could play games that got them up and moving to promote a healthier lifestyle as wellspring as interact with others. For Nintendo to be successful in the future, this differentiation strategy appears to be the best route to follow. Strategic Leadership The strategic leading surrounding the Nintendo organization appears to be ahead of their time in approximately aspects. Although they are not coming out with consoles directly aimed at competing with that of Sony and Microsoft, they are however releasing cutting edge technologies into their products.From the dual screen on the DS which allows users to sync up with others to play head to head to the Wii with a Bluetooth activated keepler, Nintendo is constantly changing the video game industry. The marketers at Nintendo dumb that too many powerful consoles cant coexist because they would eventually lead to their get collapse ( 375 ). By creating something completely new for users that rivals arent reaching, Nintendo was able to gain control of a relatively untouched market segment. Nintendo is known for its differentiation from the ordinary gaming systems and this attracts a completely different crowd than Sony and Microsoft.Stakeholders in the Nintendo accompany know this and this is what ul timately attracts them to their organization just as the stakeholders for Sony or Microsoft are attracted to the strategies of competing to be the best in terms of graphics and realistic gaming experience. If Nintendo was to change and try to compete on the same levels as Sony and Microsoft, they would more than likely lose many of their investors because this differentiation is what keeps Nintendo ranking among the top gaming companies.