Essay about Nintendo Market Analysis

2873 Words Oct 31st, 2009 12 Pages
4C stakeholder’s analysis of Nintendo Wii Market in 2006

Customers: Nintendo Co Ltd (Nintendo) and its new president Satoru Iwata believed potential existence of a consumer market that distanced itself from gaming. They opined that existing games were not only difficult to understand and play, but also found the consoles complex to operate. The games were built more on fantasy and targeted towards traditional over 18 year old male[1] population.

Nintendo made a conscious attempt to bring the non gamers into the spot light and create a new consumer segment. They decided to concentrate on simplicity and real life game scenarios. Nintendo designed and marketed “Wii” as family entertainments devise involving all age and gender
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The product was a simple console with even simpler remote (termed Wii-mote). Wii-mote was the unique feature that was able to recognize the human body motions.

Wii required physical movement from players rather than just being “couch potatoes”. The motion detectors would turn the hand movements into an on screen action through Wii-mote, simulating a real life experience. The product further evolved and included “exergaming” as well. It is combination of action on the screen together with physical exercise.

Wii was launched in only one variant reducing complexity. Wii was also compatible backwards i.e. it was able to play previous games in the new format. The console infact could connect to Wi-Fi system, able to access online information and download old successful games.

In order to relate the product with family and togetherness, the product was named “Wii” (pronounced We). The two “ii” represent two people standing side by side.

Price: Though technologically advanced, Wii does not have heavy graphics and came with only a small 512MB[10] flash drive. This enabled Nintendo to not only keep its console production cost low but also ensured a lower software cost as well. Thus they were able to launch Wii at USD 250[11] only, well below USD 300-400 being charged for XBOX 360 and USD 400-500 for a PS3.

While Microsoft and Sony relied heavily on profits from software sales, Nintendo due to lower cost could generate profits from

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