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Nintendo: Winning with wii Be because
Nintendo fas been a vith console but 1
that year
ne Vid yt
games indy for tree decades, t wa yee ad :
Ninterdy aoe Sideo game consoles wy OS SPIE a was also give
Nintendo Enertainment Sys x ee
he cde mame was Rein
as Wii and nat “Nintendo
80s. Bur iginall
sith fs PlayStation and feed
pire lone, Ninendy fit home console Nine
1990s, Sony en
Microsoft introduced the Xbox
name featured in
5 Frm glory unning 2 thou the Company ih fw lowe
» g of “Wi
dist marke ido’ spelling of di
inten rable two people sit
Nintendo intrd sere Oe
deters is meant fo
3 home video game console co oie
' Xbox 360 and Sony's Pay
inguishing featut sits witel
petng why ide, presenting pl
on 3 (PSDs wi pronounced “we” fat
ne. Wis shor an
Lnamate, which can be used asa handheld pining aking tunnvessally memorable w :
ice 10 detect movement in three dimension, need ior abbreviation, However, sm
onceived in 2001, the concept involved focusing “Revolution” over “Wii” because
sds nti ard adhe pss Becoming
{2eus on Power. Engineers and designers were joke, However as Nintendo respo ee
brought together to develop the concept fue Bea eee bce Uk
They speculated that
P familiarity of 2 TV remote
would be more inviting than the more typical aa
complex video game conollers that i's competion:
had Nintendo imentionally stayed away hems
Youch-panel concept that was adopted by i De
foes the ance seen ght eee nae
ouch and get into the game. It TV commer
SU system, ranging from urban apartment are
children, tac slogan “Wi woul ket
"4 “Experience a new way to play” ate suggest
8 broad-based strategy, The marketing camp.
ws SUECESsUl, Pensioners as ald as 103, a0 0g
Wi twee Elizabeth I, were reported to be pl
a Wi in ty
daily tournament es
Undout
btedly, the key 10 Wii's success is its wire
ling to play the game asi the
= ary ly. song som
38 opened up
eS, While
ideo games to new 9
rdcore Wit players are malesea year ater it was lbunched, Nine
alpha mothers, laa a gree nd senior
2 Wi sales. BY 2008, 80 percent of
eetavng market inthe US conse o
Pale ener, with Xbox 360 and P53
ercet and 9 percent respective
Sree wae ako proliferation of Wii parties
started without any ea feas do, G Ops of
et ed to get together for 2 ight of Wi gr
Peo erin Nintendo 35 HECK TO jump
aoe ste it saw Bre power of the pay. it patny
Pane eute to create a series of invitations. On i,
eee space ste it has added a dowaloadatie py
park of posers, doochanges, an medals
Stee sonred with the demand outpacing suppl. ty
doch, Wit sold mote units in the U.S. than the Xbox
asd P53 combined, In Japan the difference way
saree, Wi exceeded the record set by. Xbox
cies er ecome the fastesselling, game cOrsO!e
a ratan history. There were shortages ofthe console
nisin several make’s including the U.S, U.K. anc
Canad
icroxaht and. Sony experienced. losses
comming to prodoce theit consoles in the hope
ST hoking a longterm profit on software sales, but
Nintendo reportedly optimized production costs ta
ciiain 2 scant profit margin with each Wii nit
told With the top-range $599 PS3 model, Sony was sf
ising hundreds of dollars foreach uit sold. Nintends
low-tech approach allowed ito eatn a helty profit abd
be the low-price leader The Financial Times reported
that this direct profit per Wii sold varied from $13}in
Japan to $49 in the US. and $79 in Europe. In 2008
forbes reported that Nintendo made $6 operating profit
per Wi unit sold
Since its launch, Nintendo has been adding new
applications to Wi. The Wii can scan weather, news
and Web sites through a wireless Internet connection
Besides Wi Sports, it has introduced Wii Fit, an addon
device targeted at women wanting to lose weight
By mid-2009, Nintendo had set record earings
compared 0 the previous year. However, by
product was losing is novelty and that heavy discount
fom competitors were eating into Wis share
a py
a
Nintenda
oe aea
nen thus announced i st rice cut tthe
merimice was reduced by $50 t0 $199.99, In
Si el om 2 eh a ed
pecs version of Super Mario Brothers, a popular game:
non Wi 8} Febuary 2011, 212
1 per Mac rts wre sD a
ares acter tow pane eld 20%
cea pe sens, Nien hs slé mare tan
il consoles worlwide by the bepning
os wri In eid2011, Ninendo reveled We nok
f eaon Wi U wo dispel rains that Sytem inet
tone nia ae
Questions for Discussion
1, How would you deserve the Wis produc concest
2. Hes Nitendo put the ad” quetion te Ste a
ase aso wy the Wi sor not here io say
eM which sage ofthe produc lie cyl i the Wit
Based ontat stage sNintendoenploymgaprcite
‘raheing ic aegis?
4, Develop a marking state forthe pax phase
Wis produc ife re
5. Discs the potent teats to Ws hae success
What will hep Nintendo aoid a pemaize declaw
forthe wie
Sources
John Stecch, “Nintendo's Wai Console Captres New
Game Marke,” wirw guaran co.uk, 10 October 207;
snvvenswikipeda.crphvikiWN
Dominating US. Female Gaming Market wor: nextgen.
biz, 26 November 2008; “Nitendo Wii Market Analysis”
ww.downlaadwigamestree com, 4 June 2009; Douglas
Melngre, ‘Nintendo. WH Sales Soar Agi” www.
haivinancecom, 6 January 2010; “Feb 2011: Nitendo
Tom’ han, ‘Nitendo
Sales Published” wow magadgets.com 2011/03/11
or"-intendo-i-siles-pubishedr--sales-comprise-
eorwide; “Nintendo Lis Lid on NextGen Wi
Console The Svat Times, 9 ue 2011, AZO.