Nintendo’s Strategy in 2009
What is the present strategy of Nintendo?
Nintendo started to fall behind in the innovation scene when Microsoft came out with the Xbox 360 and Sony came out with the latest version of their Playstation – Playstation 3 (PS3). Nintendo’s Wii game console received many critiques from video game analysts and writers who were shocked with all of the Wii’s limitations. However, Nintendo’s CEO Satoru Iwata, agreeing with the critiques that the Wii did not offer the best quality graphics or include an extensive array of capabilities and features, stated he did not wish to speak of the Wii as a “next generation” game ...view middle of the document...
Today, Nintendo continues to make their name known. The introduction of the Wii was a brilliant idea. Nintendo designed a game console that allows users to play some of the same video games as before, but with more interaction. Also, for the first time a game console was invented that could also allow players to exercise while playing. Nintendo continues to release new games and new divisions of the Wii, such as the Wii Fit, that will allow users to use the Wii in their every day life – another outstanding move by Nintendo. With a new, interactive way to play video games and a “fun” way to exercise, Nintendo continues to be a household name in America.
What factors in the relevant general environment and the competitive environment are important in the case?
The international recession beginning in late 2007 affected many developed countries. However, this did not have a severe impact on video game consoles and software sales until mid 2009. With the video game industry revenues declining by 31 percent and console sales declining by 38 percent, Nintendo was in trouble. Wii sales went from 5.17 million to 2.23 million and the handheld Nintendo DS declined by 14 percent. There was a major...