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Nintendo presentation

Transcript: Target of political activists concerning controversy about violence in gamers. Entertainment software rating board (ESRB) Purchasing behavior is influenced consumer purchasing power. Consoles development cycle follow roughly the general computer industry cycle. Consoles are not upgradeable, customers had to buy complete new system Video games are played by young males. The current social trend on the rise are non gamers. The number of females gamers are also on the rise. Digital downloads and "in-game" purchasing is gradually becoming the norm. Technology has improved processor speed, visual and memory capacity for gaming consoles. Descriptive innovative of the smart phones and tablets have significantly altered consumer lifestyle. The video game industry used a lot of plastic and metal resources for its hardware. Manufacturing game consoles creates non-biodegradable waste. Trademarks Copyrights Licensing Intellectual property Develop a new console which will be a fusion between the DS and WII U. Develop a new product which will include all the specific needs of each target of the segment at the same device. Create Nintendo Store in the most important cities all over the world. Launch a new console with high performance which will be a fusion between the two Nintendo's devices (Wii U & 3DS): Product highly developed in terms of technology (graphics): satisfy pro gamers . Try to keep approximately the same price: keep our target market (amateurs). This new console will be like an everyday object with several features: TV/ health care/ Internet.... Avoid the precedent strategy which failed to promote the Wii U console. Create a big event. Promote the new product with highlighting the new features (revolutionary). Simple and clean design including Nintendo's touch. Price will not increase significantly . Target both amateurs and pro gamers. Provide new accessories for health care, sport, cooking... PESTEL analysis it's the SWOT analysis Shigaru miyamoto may eventually retire. The brand name could be perceived by the gaming community as a kid's toy. limited selection of software of the pro-gamers. Console power weaknesses. Limited options in online gaming. Threat of new entrants Value propositions Costumer segment HIGH Environmental factors Motion Detection HIGH Ahmed fehd Benkheroubi Khadija Jouini Sarah Siala Mohamed Taher Herzi Mohamed Friaa Cost structure 3DS Weaknesses Canvas Business Model - Shigeru Miyamoto's franchises and intellectual property. Low upfront costs. The Nintendo brand name. Past success family gaming model. Uniqueness of hardware motion detection ( WII). + SBU's of Nintendo Key resources Production partners. Development partners. Sales partners. Nintendo's challenges HIGH 1 Create a new product that can feet the professional gamers as well as the amateurs. 2 Taking over the market of console game. 3 Gain more market share through new targets. Children School and university students Focus on family gaming Minimize cost through outsourcing. Providing highly innovative products with a poor performances. New generation of remote What is it ? Key activities Retailers Websites Community Online and offline Competitive Rivalry within the industry VIDEO GAMES Which strategy we recommend? Legal factors LOW HIGH Social factors Threats Channel Revenues Asset sales : Consoles Games Accessories Royalties from games developers. Selling innovatives consoles with more social experiences. Community fees. Economic factors Unique and innovative Gaming with more social experiences Porter's 5 Forces Recommendations USB 3.0 Blu-ray/ HD dvd BCG Matrix WII U Key partnerships Research and development Selling customize Building community Let the show begins ! Nintendo Wii FUSION Full HD resolution New CPU with high performance Wireless connection ON/OFF Mimicking Nintendo's technology and innovation by Sony and Microsoft. loss of potential costumers due to the XBOX and PS4 very high performances. Disruptive innovation caused by tablets, smartphones and applications Social media gaming. The console market is approaching the saturation. Implementations Technological factors + Political factors Strength - Opportunities Bargaining power of suppliers Home networking Entertainment delivery technology increase on video game technology (Graphism & CPU power) Shigeru Miyamoto. Suppliers : hard & software manufactures. Outsourcing. Bargaining power of buyers Implementation: Threat of substitutes products

Nintendo Presentation

Transcript: Rivalry among Existing Competitors The power of customers is very strong until they buy a console Easy to lose existing client Hard to gain new client These companies are dependent on customers Through advertising can be possible to increase power of buyer Key Factors Console Technology War Very challenging industry Competition: Sony (PS), Microsoft (XBOX 360), Nintendo (Wii) Customer range: young to old generation, females, hard core gamers, first time gamers Highest sales of video game consoles, software, and accessories in 2008 - $23.1 billion 19% greater than 2007 Despite recession and increasing competition, industry continued to grow through 2008 In 2009 industry revenues fell from $1.7 billion in 2008 to $1.2 billion Console sales were specifically hurt the most, falling from $617.3 million to $382.6 million Thank you for your attention! Blue Ocean Strategy Business Strategy Open innovation  WiiShop channel, WiiWare Differentiation & low cost leadership Very weak High cost High competition Oligopoly Nintendo’s Strategy SWOT Analysis 1983 – Nintendo Entertainment System (NES) 1990 – Super Nintendo Entertainment System (SNES) 1996 – Nintendo 64 (N64) 2001 – Nintendo GameCube (GCN) 2006 – Nintendo Wii 2012 – Nintendo WiiU Strengths Established brand name and recognition Nostalgia and positive emotions associated with older games Global presence and reach Loyal customers Unique products Cost leaders First to introduce motion technology Lots of capital New product long before competitors release Wii – Netflix partnership Nintendo is solely a "toy company" The Bargaining Power of Buyer Technology Strategy Do it differently Moving to mixed reality The threat of substitute products or services is low So far there is no appropriate substitute for an electronic game or game console PC games and tablets Product innovation Technological change Change in the industry growth rate Change in the personal computer industry Change in the industry’s costumers Bargaining Power of Suppliers Video Game Console Industry Timeline New demand in an uncontested market space Non-gamers No present competition New gaming concept/Strong value innovation Competitive advantage – market leader in sales of 7th generation game consoles Weaknesses Smaller game selection than competitors and less qualitative games Dependent on global supply chain, could cause potential problems Margins per unit are very low Technological capabilities Partnerships with independent software developers Acceptable development and production costs Product variety Access to distribution 2005 Microsoft releases Xbox 360 for Christmas Sony and Nintendo launch products to compete 2006 Sony launches the PlayStation 3, with matching specifications and additional Blu-ray drive, but at a high price Nintendo releases its technologically inferior Wii console and runs out of stock through the holiday season 2007 Nintendo sells all the Wiis it can produce through 2007 and 2008 2009 Nintendo’s Wii is the market leader in sales of seventh-generation video game consoles 2010 Microsoft launches Xbox Kinect, Sony releases PS Move 2012 Nintendo Launches the WiiU on November 18th Porter´s Five Forces SWOT Analysis Market Strategy Reaching beyond existing gamers New & easy to use controller Shortening the game time The budget console Financial Performance Driving Forces Nintendo Video Game Consoles Opportunities Increasing online gaming Expanding customer base Middle East and Asian markets Improving quality of console games for other gamers *U.S Dollars in Millions Weaknesses in Financial Performance Very high in the case of gaming consoles and games and accessories Market share  R&D  new customers New generation consoles new innovative features customer switch the company Threats Recession affected sales of video games as non-essential products Sony and Microsoft have released motion technology gaming systems IPad and tablet games Threat of Substitute Products or Services SWOT Analysis SWOT Analysis Power of Suppliers is very low Suppliers are dependent on these companies; however, they provide work for entire year Maintain Innovative image Face up to Xbox, Kinect and PS Move, moving into the accessible gamers market by enhancing gaming experience and improving performance Keep costs of production low Develop better and more games with different levels of game play sophistication 2012: Negative Operating Income for the first time since 2000 Main products are reaching the end of their product life cycle Insufficient sales from games and other complementary products to maintain high financial performance Console Segment of the Video Game Industry Porter´s five forces Nintendo’s Strategy Threat of New Entrants Competitive Strength Assessment Recommendations Mariya, Suleyman, Marina, Vlad Video Game Consoling Industry Nintendo’s Consolidated Statements of Income

Nintendo Presentation

Transcript: Comparing Nintendo with ancient Japanese games details Traditional Japanese Games outlook notes Thanks By: Samantha, Addison, Krishna and Kean 7I 1995 Mario was originally supposed to be a carpenter not a plumber. Super Mario Bros (cc) image by jantik on Flickr Nintendo Company is a Japanese multinational corporation which was originally founded to produce handmade hanafuda cards. It eventually became one of the most important figures in today's video game industry. It started as a small Japanese business creating cards which turned into a toy company. Nintendo also set up a taxi company, a food company and a chain of short-stay hotels, known by the name 'love hotel' chain. These experiments of Nintendo failed, while the toy-making business managed to survive. An example of an old japanese game is the shogi is is a japanese version of chess. Mario has a hat Because it's hard to show his hair 1. When did the company first begin? a)1990 b)1967 c)1898 d)1982 Whether its saving Zelda or battling Ganon, the Legend Of Zelda is one of the most successful franchises in history. With millions of devoted fans across the world. Super Mario 64 1983 Hanafuda Cards The year 1983 witnessed the release of Nintendo's Famicom, a family computer system in Japan. Nintendo released the Famicom worldwide under the name, the Nintendo Entertainment System. In 1990, Nintendo came up with Super Mario Bros, which was a major success. In the decade that followed, Nintendo witnessed a mix of both successes and failures. The Games: Timeline Donkey kong- simply meant stupid gorilla Pauline- name after wife of Don James luigi koopas Wario- a combination of Mario and 'Warui', which meant bad in Japanese. Waluigi Characters Super Mario Galaxy 1991: S 7. What was Nintendo's first product? a) Cards b) Mr. Game & Watch c) Donkey Kong arcade 4. Nintendo's first gaming product was what? a) The Mr. Game & Watch b) The Gameboy c) The Nintendo Entertainment System Super Mario (cc) image by jantik on Flickr 1984 1991 Mario had a rival game Wario. Nintendo Famicon (cc) photo by Metro Centric on Flickr Super Mario All-stars The first things you need to know about Zelda are the characters Link - The main protaganist and the hero of the franchise Zelda - Spending most of her time being rescued by Link, in some titles she is shown as a capable warrior. She is the rightful princess of Hyrule Ganon - Evil Gerudo, evil mastermind, he spends most of his time trying to kill Link and capture Zelda Vaati - He was a peaceful Picori that got corrupted by the hearts of men. He now tries to capture Zelda for unknown purposes and tries to kill Link 3. Nintendo's best selling game series is what? a) The Metroid series b) The Mario series c) The Legend of Zelda series In 2001, Nintendo came up with a home video game console known as Wii.With new releases like Wii, Nintendo DS and the Nintendo GameCube, the company earned international reputation. It continues to be one of the biggest names in the computer and video game industry. Important Details 2002 History 8. Jumperman was later called what? a) Link b) Mario c) Luigi 1993 5. Nintendo's two most famous characters are who? a) Mario and Link b) Fox McLoud and Kirby c) Samus and Captain Falcon Beigoma Nintendo DS Donkey Kong Go-Moku Mario is a fictional chracter created by video game designer Shigeru Miyamoto. Mario serves as the Nintendo mascot. Mario has appeared in over 200 video games. He is a plumber that lives in the mushroom kingdom. Zelda Super Mario Sunshine 2002 March The Nintendo Quiz Notes Characters Legend of Zelda Nintendo Wii 2007 Mario was originally going to be called Jumpman... JapaneseKendama (cc) photo by Franco Folini on Flickr 1981 Mario's Bombs Away 2. Who was Nintendo's first characters, and what was their correct names? a) Mario and Luigi b) Bowser and Mario c) Donkey Kong and Jumperman since 1995 the voice of Mario Wario and Luigi was the American actor Charles martinet Gunpei Yokoi Wario was naughty version of Mario. 1982 The toy-making company saw success in late 1970s, with the release of 'The Ultra Hand', an extending arm toy designed by a maintenance engineer working at Nintendo, Gunpei Yokoi. Hiroshi identified the talent in Yokoi and soon transferred him to product development. Yokoi proved to be a creative engineer. He soon came up with innovative products like a baseball throwing machine, a love tester and the famous Ten Billion Barrel puzzle. Nintendo soon began developing its own. There are other traditional games from japan like the go-moku it is an abstract strategy board game while nintendo is like a psp but has been out for much longer. go-muko used to be played with black and white stones . 1986 Radar Scope MARIO Donkey Kong Jr to compare the two, we must first understand traditional Japanese games 1985 He once came as a plumber in 1990 2002 March Shogi Super Mario World 2: Yoshi's Land Super Mario World beigoma are traditional japanese spinning tops. It may be small but it is

Nintendo Presentation

Transcript: Nintendo Presentation The Nintendo History 1889 A Card Company Nintendo, a well established company didn’t always start as a instant success, there were many failures along their long road to where they are now. This little company originally called Nintendo Koppai was in Kyoto, Japan that was founded by Fusajiro Yamauchi on September 23, 1889 they produced handmade Hanafuda plastic playing cards. This plastic playing card company decided to venture out and they eventually struck a deal with Disney to put the famous Disney characters on their playing cards. Hanafuda 1966 The Toy Company In 1966 Nintendo decided to venture into the toy company business and produced toys Ultra Machine Love Tester Extending Arm 1975- 1981 The First Video Games 1975 was a turning point for Nintendo from a small toy factory to the video arcade game industry. 1983 The First Game Console The release of Famicom the first Nintendo game console and other popular game releases like Super Mario Bros, Popeye and King Kong made Nintendo an even more popular family entertainment console The Handhelds Handheld games were first introduced in the 1970’s by notable companies like Mattel, Milton Bradley and Coleco. These handhelds were built with only one game in its system not like our present day ones where we can interchange to the many different game cartilages. Handhelds Game & Watch Game Boy Game Boy Advance/ Micro Handhelds #2 The Game Boy had only one screen and control buttons but later on the Nintendo DS lite came along having two screens, voice regognition, and a touch screen. The DSi was an improved version of the DS lite by how it had improved sound quality, Two cameras (one on the outside and one facing the user). The DSi XL was a larger version of the DSi with its expanded screens. The 3DS is the newest handheld created. It has a three -dimentional effect that is glasses free. The Consoles Nintendo’s first ever game console was the Famicom. They used hard work and new technology to create The Nintendo Entertainment system. The Nintendo Entertainment System Super Nintendo Entertainment In the beginning the first systems were only able to have 2 player games to the much more advanced systems of 4 and more players with the Gamecube. By: Russle Teodocio TA: 40 And...... Brandon Tam TA: 26 Thanks For Watching!!! 2004 - 2006 2011 Nintendo DS Lite Donkey Kong Famicom The Game & Watch series was released by Nintendo in the 80’s. The Wii Nintendo 3DS 2009- 2010 2001- 2003 There were many more advanced handheld units that were made after the Game Boy colour like the Game Boy Advance, Game Boy Advanced SP, Game Boy Micro. If you’re a person that wants to get some exercise while you play video games than this game console is what you’re looking for. 1989 - 1998 The Nintendo GameCube 1980 Most games were based on simple card and board games until the first Game Boy was released on July 31, 1989 in North America. The Game boy had combined features of the NES and Game & Watch in it’s system and was the first to use video cartridges since Milton Bradley’s Microvision console. There where many other handheld game consoles released in the 80’s but the Game Boy and Game Boy colour was an instant success selling over 118.69 million units upon its release in the U.S. The Wii uses infrared detection to sense its players in 3D space not like the original controllers that first came out using wired controllers. Players can go online in the internet, purchase games, checkout the weather, make a avatar of yourself which is called a Mii and many more features. The very First Nintendo Commercial EVR Race In the 1970’s the LED screens that the companies used were very expensive but in the 1980’s they came out with LCD displays screens which were more affordable. Here is a very short video about the first ever Nintendo Commercial 1889 - 1983 NIntendo DSi/ XL The Nintendo 64

Nintendo Presentation

Transcript: “The next generation is a place where the best idea, not the biggest budget will win,” “The key here is not what you are playing but how you will be playing. Revolution will also create entirely new genres to expand the definition of video games.” “If we continue down the same path as we have in the past, people may become tired of gaming,” “Nintendo has strong views on how we should run our company. We consider ourselves, above all else, as a gaming company. We believe other companies (in the console marketplace) see themselves primarily as technology companies.” “The game has changed, ... and the way the game is played has to be changed.” “We believe we know what makes a good game better than anyone else.” Top 3 competitors Microsoft, Sony, Apple Revenue "Create something unique" 独創 4,928 Employees as of March 2012 Sales Nintendo is a public corporate company. Its stock symbol is NTDOY. History Satoru Iwata Nintendo was founded as Marufuku Company, Ltd. in Kyoto, Japan, in 1889 by Fusajiro Yamauchi. Marufuku made playing cards for the Japanese game of Hanafuda. Name was changed 1951 to Nintendo Made card and board games,as well as toys until first video game is designed 1975 First console, Famicom, released 1983 in Japan, 1986 in America Nintedo Of America Redmond, WA “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services” Nintendo Of Europe Großostheim, Germany. Nintendo Headquarters Kyoto, Japan (http://www.youtube.com/watch?feature=player_detailpage&v=9AkPdAWfFjI) (fourth president) Profits Transformational Leader Their advantage is innovation, a wider target market and familiarity/nostalgia. Sources http://www.vgamingnews.com/news/nintendo-announce-201011-profits/ http://www.nintendo.com http://www.fundinguniverse.com/company-histories/nintendo-company-ltd-history/ http://bi.galegroup.com.portal.oaklandcc.edu/essentials/company/1198654?u=lom_oakcc http://www.famouslogos.us/nintendo-logo/ http://gatton.uky.edu/GSRP/Downloads/Issues/Spring2011/Nintendo-%20Maintaining%20Competitive%20Advantage.pdf http://thinkexist.com/quotes/satoru_iwata/ http://i360institute.com/wp-content/uploads/2011/10/Nintendo_Revolution.pdf

Nintendo Presentation

Transcript: Selling only 3.91 million units globally since launch, the Wii U has sold way below Nintendo's expectations for the platform. The Wii U's 3 major mistakes include: (1.) Fumbled 3rd party support (2.) Bad advertisements. (3.) Too few Nintendo games. (Short-term) Will create "Wii sports resort" Will be a follow up with Wii sports letting players ride Jetskis, play freesbe, etc.it will also come with an accessory that increases accuracy on motion sensitive controller. (Long-term) Nintendo has a strategy to go beyond gaming. It plans to launch a video on demand service for Wii. The Dsi will have 2 cameras, a music player, Web browser, downloadable content. Instead of selling one unit per household like the Wii, nintendo plans to sell one Dsi per family member. Nintendo will compete with smart phones, music players, and other consumer electronics. In 1889 Nintendo began by producing Hanafuda Cards which are simple playing cards. In 1959, Nintendo associated with Disney to produce cards with Disney characters which quickly gained popularity and this initiative resulted in Nintendo dominating the industry. Nintendo Presentation 1. Fumbled 3rd party support: The company not being able to establish solid collaborations with other companies lacking support. 2. Bad advertisements: Awful nintendo advertising of the Wii U does nothing to help boost sales of Wii U. They are unable to show consumers why they should buy a Wii U (having complicated controls and bad graphics). 3. Too few games: Mostly if not only child target audience games. They lack realistic HD games. Popular Games In 1975, Nintendo developed a video game system using an electronic video recording (E.V.R) and created the "EVR Racing game. With arcade hits including the sequels to Donkey Kong and the 1984 hit “Mario Bros.” Nintendo became Japan’s leading arcade game developer. By: Alex Villafuerte Economic Issues The playing card business reached its saturation point, the Japanese households stopped buying them and Nintendo’s stock fell from 900 to 60 Yen. Nintendo came up with "Famicomp" in 1983 which sold about 500,000 units but soon after experienced the "video game crash of 1983". Nintendo was able to survive the crash while its competitors did not. Nintendo's Future Modern Economic Issues Did you know? 3 wii u problems

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