Nintendo's Disruptive Strategy

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NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY Executive Summary Nintendo is a Japanese based corporation founded in 1889 and its original purpose was producing playing cards. It changed its name from Nintendo Playing Card Company to Nintendo Company Limited in 1963. Since then, Nintendo has been creating video games and gaming systems that have become tops in the industry. There were many new players came to the market in the 1980s and early 1990s, which intensified the industry competition. With the increasing popularity of personal computers, gamers were no longer limited to playing their favorite video game titles on proprietary consoles. In 1995, Sony achieved an instant resounding success by releasing the PlayStation and surpassed Nintendo who had been a dominant player in the video game industry for many years. Although Nintendo tried various strategies to counter, Sony quickly captured a significant portion of the market and taking over the dominant position in the industry. In 2001, Microsoft entered the market too by introducing the Xbox console, leaving Nintendo with an even smaller portion of the market. In order to compete against the rivals, Nintendo introduced new strategy which did not enter the same competitive market but sought market shares from a completely different angle. Nintendo tried to create a new market not by simply improving graphics, but by making games that everyone could enjoy, regardless of age. Attracting casual gamers such as professional, party or non gamers, families and active adults is what Nintendo tries to do with the new strategy. The new handheld device DS and the video game console Wii were products of Nintendo’s strategy to expand the video game consumer market. Both products are simple and easy to use so that they appealed to Nintendo’s target

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