Nintendo: Game On!
(9 pages of text)
Case (Pub Mat)
In 2015, Nintendo—the iconic Japanese video game company—was faced with the decade-long challenge of responding to an industry that had changed in ways it had not anticipated. Under its new president, Nintendo had to contend with large-scale changes in the global gaming market. By not adapting to changing customer needs, Nintendo had lost the customer loyalty it had once enjoyed, as was evident from the decline in the number of units sold. It faced daunting challenges in the traditional console gaming segment from Sony and Microsoft, as well as more recent threats to its competitive position from the mobile gaming segment, which had become a preferred platform for game developers. Nintendo needed to decide how to revise its business model and strategies to move away from the decline that had been part of the company for years. Could the once-dominant Nintendo connect with its customers as it had done in the past, or was it better off as an acquisition target by a large entertainment company?
Nintendo is a Japanese company that has earned more success in the West (Europe and the United States) than in Asian markets. The company’s 125 years of rich history provide a substantial opportunity for students to learn about the history of a major gaming company from Japan, while also dealing with contemporary issues facing Japanese companies that have failed to adapt to 20 years of changes in customer preferences and the nature of the industries in which they compete. Given that Nintendo is facing major decisions about its future, the direction it chooses (revitalize or company sale) can provide an excellent opportunity for a healthy classroom discussion.
Arts, Entertainment, Sports and Recreation
Japan, Large, 2015
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