Wednesday, April 16, 2014

Nintendo Star Power

There is not a doubt in the minds of gamers that Nintendo is probably the most innovative gaming companies in the world. Nintendo has made a few very innovative devices over the last serveral decades like the Gameboy, Gameboy advance, Gameboy SP, and Nintendo DS. However, even the Nintendo DS, the first handheld system to feature a touch screen game play, was no match for what Nintendo was unleashing next, The Nintendo Wii.
Fig 1
The Wii was the perfect console to describe Nintendo’s place in the game market.  Nintendo has been competing with Microsoft and Sony for many years, but it was this system that help brand themselves away from their competitors. Nintendo was able to create a brand new market in which no one has ever ventured into, motion response gameplay. The Wii’s gameplay style was so unique that it created a whole new market of buyers. It’s no longer just a market for kids, but also for adults and elderly people. There has been a study done by the Parkinson's Disease Society of the United Kingdom that shows the Wii actually helps people with Parkinson’s disease. The people with Parkinson’s that play the Wii find that playing the Wii actually help control their movement as well as improving both their balance and mood. [1]

Besides the innovative gameplay, the Wii was able to draw in so many more consumers is because of its relatively cheap cost. If you look at the chart below, you can see that Nintendo products tends to sell a lot more units due to its cost relative.
Fig 2

consolesFig 3


According to an article by Geekwire, Nintendo in total has actually sole more than 100 million units worldwide, while Sony and Microsoft have only sold about 80 million each. [2] It’s rather impressive that a gaming company with only few major title was able to sell more units than their other top competitors who has exclusive right to most of the other major titles. This is truly a remarkable blue ocean strategy to create a brand new market to distinguish yourself from other competitors that have much more resources than you and keeping the cost low to have maximum consumption. I wonder what kind of innovative gaming technology will Nintendo come up with next to keep their branding.

Source:
[2] http://www.geekwire.com/2013/xbox-360-wii-ps3-won-console-generation/

Image Citation:
Fig 1: https://resnet.gatech.edu/gamingSystems/PublishingImages/nintendoWii.jpg
Fig 2: http://www.gamnesia.com/images/uploads/novem30sales.jpg
Fig 3: http://cdn.geekwire.com/wp-content/uploads/consoles1.jpg

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