Essay about Nintendo

10470 Words Oct 4th, 2015 42 Pages
ALI FARHOOMAND

NINTENDO’S DISRUPTIVE STRATEGY:
IMPLICATIONS FOR THE VIDEO GAME
INDUSTRY
For some time we have believed the game industry is ready for disruption.
Not just from Nintendo, but from all game developers. It is what we all need to expand our audience. It is what we all need to expand our imaginations.
- Satoru Iwata, president of Nintendo Co. Ltd1

In the 2008 BusinessWeek–Boston Consulting Group ranking of the world’s most innovative companies, Nintendo Co. Ltd (“Nintendo”) was ranked seventh, up from 39th the previous year. 2 This recognised Nintendo’s significant transformation into an innovative design powerhouse that had challenged the prevailing business model of the video game industry.
In 2000, when Sony,
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Havovi Joshi and Samuel Tsang prepared this case under the supervision of Prof. Ali Farhoomand for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes.
© 2009 by The Asia Case Research Centre, The University of Hong Kong. No part of this publication may be reproduced or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise (including the internet)—without the permission of The University of Hong Kong.
Ref. 09/428C

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09/428C

Nintendo’s Disruptive Strategy: Implications for the Video Game Industry

The new console proved to be a runaway success. By September 2007, Nintendo had become
Japan’s most valuable listed company after Toyota, and its market value had tripled since the launch of the Wii. In spite of this initial success, however, it was not clear whether Nintendo had really disrupted the industry and changed the name of the game.

History of Nintendo—1889 to 2002
Nintendo’s3 roots could be traced all the way back to 1889 in Kyoto, Japan, when Yamauchi, the founder of the company, started manufacturing playing cards. In 1907, the company began producing Western playing cards, and by 1951, it had become the Nintendo Playing Card
Company. In 1959,

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