Abstract

Nintendo is a major game development company, developing both video game consoles and game software. The case begins with an account of the company's decline in fortunes in the early 2000s. It then describes Nintendo's decision to create a new console with unique gameplay, instead of going in for a console with advanced graphics and superior processing power. The case describes the features of the Wii and its controller, the Wii Remote, the target market, the marketing efforts, and its strengths vis-à-vis competing consoles. It ends with a discussion on the challenges and future prospects for Nintendo and its new console.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the importance of innovation
• To appreciate a company's strategy of market disruption, and the compulsions, the risks, and the rewards
• Analyze the current status and the future prospects of the video games industry.

Keywords

Nintendo Wii, Game console market, Market expansion strategy, Differentiation strategy, Video gaming industry, Gameplay, Sony PlayStation 3, Microsoft Xbox 360, Wii Remote