Transcript Nikolay Martynov, Mark Johnston, Justin McNeill, Hisami Miyara

Nikolay Martynov,
Mark Johnston,
Justin McNeill,
Hisami Miyara
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Outline
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4.
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Past of Nintendo
Internal Environment of Nintendo
Current Industry Trends
Global Issues
SWOT Analysis
Competition
Conclusion
Recommendations
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Video

http://www.youtube.com/watch?v=kbUTu
vJjKFQ
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Past of Nintendo

Nintendo Company Limited was found in
September the 23-rd 1889 in Japan.
Company was producing playing cards for games.

In 1920-s, it tried to run love houses
business, taxi and fast food.
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History
1. In 1978 first video games appeared from
Nintendo, named Computer Othello
2. In 1990 the most famous video game
console came to the public production

Super Nintendo Entertainment System
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Internal Environment
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4.
Nintendo Company has over 3000
employers
Head quarter in Kyoto
CEO of the Nintendo is Satoru Iwata
Co-owner of Seattle Mariners, baseball
team in Seattle, Washington
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Organizational Structure
Nintendo has tree levels of divisions which called
parties.
a) First-level parties: Nintendo R&D1, R&D2,
Intelligent Systems.
b) The second-level parties
13 companies who have contracts only with
Nintendo Company
c) The third-level parties
have close relationship with the Nintendo.
(even Panasonic – shared with technology)
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Financial position
Strong financial position
In 2006 Nintendo sold
387 million of hardware
2.2 billion software among the world
Net sales in 2006 world wide was $ 4.5271 billions
P.S. Nintendo outperform it expectations for 2006
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Video Game Industry
Trend
o
o
o
o
Increasing demand
Implementing technology
Adopting cultures
Connecting the World
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Trend
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Adopting Culture
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http://www.filibustercartoons.com/Nintendo.php
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Connecting the World
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Nintendo – sekai no daredemo
http://www.nintendo.co.jp/ds/atdj/taisen/index.html
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Global Issues
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Controller Malfunction
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Piracy
- China Main problem
- $762 million dollars lost in 2006
- Hong Kong, Brazil, Mexico, Paraguay
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Violence
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Strengths
Strong Brand Name
 Introduction of New Gaming Ideas
 Large Advertising Budget
- Television
- Magazines
- Internet
 Sports Celebrities to Promote Products
- Tiger Woods “Tiger Woods 07”
- Michael Vick “Madden 07”
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Weaknesses
Absence in the Mobile Market
 Not DVD Compatible
- Competition does have this
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a. Sony PlayStation
b. Microsoft XBox
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Opportunity
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Increase in online gamers
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Internet
Cell Phone
Growth in older consumers
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Average 30 years old
43% - ages between 18 and 49
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Threats
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Target of Criticism
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Parents
Psychologists
Politicians
Strong competition
Software piracy
 China,
Korea, Russia
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Pirated Video Games Market Value
Country
Market Value
China
Korea
589.9 Million
415.1Million
Russia
223.9Million
Taiwan
Mexico
161.9Million
137.7Million
Spain
Sweden
135.3Million
135.3Million
Brazil
120.8Million
India
65.2Million
Source: International Intellectual Dickinson
Property Alliance 2005
Competition
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Wii (Nintendo)
PlayStation3 (Sony)
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XBOX (Microsoft)
Competitors
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- Microsoft Xbox
- Sony Playstation
- Actual Computers
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Nintendo
Nintendo DS
- PDA type of game play
- Wifi
 Nintendo Wii
- Controllers
- Internet
- Download old Favorite Games
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Xbox
First released on November 15, 2001
 Main Video Game
 Xbox Live
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Playstation
First produced in the mid-1990’s
 Main Games
 Playstation 2
 PSP
 Playstation 3
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Computer
Single Player
 Multiplayer
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Conclusions
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From early items to actual video
game
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Two main competitors, Microsoft
Xbox and Sony Playstation
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Nintendo does need to concentrate
more on new ideas
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Recommendations
Upcoming 6 months
to select sports stars the country is familiar with
One year
Nintendo should begin research, in other areas of
games
Long-term
gaming console that is DVD compatible
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Thank you!
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