Question

Gaming is a tech-intensive industry. Was technology the defining factor for Nintendo’s success? If not, what was the key factor behind Nintendo’s business success? What role did technology play in Nintendo’s new market creation?

Answer 1

a. Nintendo began as a card game company, as cards had been outlawed in Japan, and Yamauchi Nintendo created a non-gambling card game that was approved by the government. They then added Disney characters to cards, created electronic toys, and finally partnered with the Magnavox Odyssey to create a video game console.

b. When they created the Family Computer Home Video Game Console and their own characters, it was wildly successful. They then released the Game boy and eventually created Pokemon and Super Smash Bros. The competitive advantage of these games was that they only ran on Nintendo devices, forcing users to own both the device and the game.

c. Nintendo initially thrived off of being ahead of its competitors, once the Playstation and Xbox were released, Nintendo struggled.

d. Nintendo’s new market creation revolved around the creation of the DS. Once their competitors had created new and exciting products, they had to do the same. They created a high-quality portable gaming device that didn’t appeal just to hardcore gamers, and rather to a broader more accessible demographic. They kept costs low because this demographic did not prioritize resolution and clarity, but instead the experience and enjoying themselves. They also released a blue and pink version, to appeal to more people as well. This was where we really started to see Nintendo take advantage of the Blue Ocean and appeal to a large demographic with their simpler games.