Nintendo’s Revolution

MARKET DYNAMICS
Early
2000s 2000
Sony and
Games Microsoft
were a threatened
Nintendo
huge deal

2000
Sony’s 2001
PlayStation 2 Sony (PS2) and
dominated the Microsoft (Xbox)
market had each 66% and
22% market share

2005
2004 Sony and Microsoft
Nintendo released released their next
mobile gaming. generation
console. While
Sony match it with
Nintendo released
PSP (PlayStation theirs on the next
Portable) year.
 A HISTORY OF NINTENDO MANAGEMENT

 1889 Nintendo as a card company

 Nintendo became the first company in Japan to produce playing cards from plastic

 1966 Nintendo became toy company

 Nintendo released the first solar-powered light gun, the Nintendo Beam Gun

 1972-Present, Nintendo focus on electronic games

 In 1972, the first commercially available video game console, the Magnavox Odyssey, had a light gun accessory, the Shooting Gallery.[15] This was the first
involvement of Nintendo in video games
PROBLEM STATEMENT
• Nintendo finally released their newest console to compete with other
gaming giants such as Sony’s PlayStation, Microsoft Fight Simulator
and Microsoft Xbox. Their console innovation called “Revolution”.

• Regarding of all the requirements to enter the new concept with their
decision to change the controller design:
• Should they launch their new Revolution?
• Would they deliver the console successfully to the market?
 COMPETITION ANALYSIS

Sony (Playstation & PS2) Microsoft (Xbox Series)

- Cheap CD games compare to cartridge - Well known in US and euro

- Attracting for third parties to develop
- Good durability, children can play for long time
- Have several additional hardware
multi-tap, gameshark, etc
- Best graphic performance at the time
- Have several iconic game that only released in microsoft
console
- Durable
- Pioneer for every generation console

- Playstation have broad game genre, it has nearly all segment of - The console segmenting more mature audience, the genre is
age. not broader than playstation
Decision Point of Revolution
• Toys not just for children  for all family members
• Designed as a small, polished product  to be acceptable by mothers
• Price  inexpensive (about $100) compared to rival products
• Software  easy to be played by all family member
• The console  stay on for 24 hours, consume little electricity, make little sound with backwards
compatibility with older Nintendo games
• One-handed controller with rod-shaped pointer  resembled a mobile phone with simple, comfortable,
easy to use and not intimidating feature to new gamers  try to convince “mom” crowd, a new-and-non-
traditional audience segment, but must be modified for two-handed console from older games
• Two-handed controller with a pointer in the middle  most games required two-handed play  to
convince serious and loyal gamers  sensitive to the reaction of the existing gaming population towards
non-traditional product
• Little time  must announce and demonstrate Revolution at event in LA to
Causal Loop Diagram
New-non- Loyal-
traditional traditional
market + + market

+ +
New console New console
New product
w/ one-handle w/ two-handle
controller controller
Production + Production
R Competition
R
New software Backwards
w/ easy-to-be- + compatibility
played by all
Price Profit Price
+ +
+ +
Sales Sales