Innovation of Nintendo Company

Innovation of Nintendo Company

Introduction

Nintendo is a Japanese company originally founded on November 6, 1889 by Fusajiro Yamauchi to produce handmade hanafuda cards, for use in a Japanese playing card game of the same name. In the mid-twentieth century, the company tried several small niche businesses, such as a love hotel and a taxi company. Over the years, it became a video game company, growing into one of the most powerful in the industry. Aside from video games, Nintendo is also the majority owner of the Seattle Mariners, a Major League Baseball team in Seattle, Washington. Nintendo has also purchased majority ownership of Gyration, a company specializing in gyros and motion sensors, for assistance in designing the controller of the Nintendo Revolution.   Nintendo's major products include the Nintendo Wii, which comes with wireless motion-sensitive remote controllers, built-in Wi-Fi capabilities, and a host of other features, and Nintendo DS, which features two screens, including a touch screen, a microphone, built-in Wi-Fi capability, and backward compatibility. Its old but very successful and popular products include Nintendo GameCube, Game Boy Advance, Nintendo 64, Super Nintendo Entertainment System, and Game Boy.

      The Nintendo Wii has two major competitors in the gaming industry- Microsoft's xBox 360 and Sony's Playstation 3. In this generation of gaming consoles, the 3 competitors are engaged in an intense battle to see who has the greatest competitive advantage and most profitable sales.

      In the gaming world, the Wii has a large number of advantages over the other two systems. The Nintendo Wii appeals to all groups of people, but most notably is its draw of casual gamers. This is a section of the market that Microsoft and Sony have not been able to capture.  The casual gamer is attracted to the Wii because it is so different in comparison to other gaming consoles. It focuses less on graphics and having cutting edge technology and more on a unique gaming experience.  As CEO Satoru Iwata said in an interview last year, Nintendo's greatest competition is not Sony or Microsoft, but non-gamers; “We are battling the indifference of people who have no interest in videogames.” (Sheff, David 2005)

      Because the Wii's success has been based on innovation instead of superior technology, it is able to be manufactured and sold at lower prices, attracting casual gamers more than the other major gaming consoles which are considerably more expensive.  One Wii costs about $250, compared to the PS3, which goes for $599 or the XBox 360 for $399. It also costs less to manufacture games for the Wii, meaning that they can be sold for a higher profit margin at lower cost to the consumer.  Games for the will can cost $5 million dollars to create, compared to $20 million for the PS3.3  This is a huge advantage, especially considering the people Nintendo are targeting for this product.

      In addition, Nintendo added the "family friendly" parental controls. This gives parents a sense of security, knowing that if their children are using the Wii, they won't be ...