Nintendo Company Analysis

Nintendo Company Analysis

The Videogame Industry - According to a report from Wired .com , the videogame industry in America was worth 12 .6 billion in 2005 and is forecasted to expand to 17 .2 billion in 2010 . In an article in the San Francisco Chronicle , Ryan Kim mentioned that in 2006 , the worldwide video game industry was worth 25 .5 billion . Nintendo is a player in the videogame industry world wide

Industry players could also be categorized into two major categories hardware makers and software makers . Software makers make the games that

are played in consoles and personal computers . Major players include Electronic Arts in North America and Square - Enix in Japan . The other category , the hardware developers make the hardware for these games to be played on . There are currently three major players Sony , Microsoft and Nintendo

Hardware makers also make software (video games . Video games made by these hardware companies are usually exclusive to their own consoles Aside from being another line of income , hardware manufacturers do this to differentiate their consoles from one another through the video games playable only on their console . Some hardware makers also strike deals with software makers so that some games made by the software maker are only playable on the hardware manufacturer 's console . This is done also for the reason of differentiation . An example would be upcoming games in Konami 's Metal Gear Solid series which will only released for the Sony Playstation . For the most part however , software makers release their games on all systems . This strategy would be the most profitable as by doing so they are covering the entire videogame market , not just the market that bought console X or Y . There is also a 5-6 year product cycle in the videogame market which is the length of time until console manufacturers release their newest platforms

Nintendo - SWOT Analysis

STRENGTHS - The greatest strength of Nintendo would be its innovative game console hardware . While its rivals the PlayStation 3 (PS3 ) and the XBOX 360 have continued the trend of putting more computer power into the next generation of consoles , Nintendo has gone in an unusual direction . Instead of trying to make the Wii the most powerful console in the block , they designed the Wii with the concept of appealing to a larger demographic - girls and the elderly , two demographics that usually don 't play video games . Also , by not trying to cram the latest high-end electronics into the Wii , Nintendo was able to offer the Wii at a price of 250 compared to 500 - 600 for the PS3 and 300 - 400 for the XBOX 360 . This strategy has seemed to work for Nintendo , in the first three months of its release it outsold both the PS3 and the XBOX 360 (Gaudiosi Wingfield B1 . Nintendo 's booming sales of the Wii and the DS handheld console have helped boost Nintendo profits up by 77 (Tabuchi

Another strength of Nintendo is to be found in its video game franchises . Nintendo has...