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Nintendos Business Plan

This Work’s Description

This is a final project created specifically for the University of Virginia’s Darden School of Business. Students were given the task of counseling a chosen agency, analyzing its competitive condition, and developing action plans to enhance its current competitive position.

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Introduction

As the company strives to reestablish its competitiveness in the current console cycle, the existing business model will attempt to address Nintendo’s issues (dubbed the eighth generation). The Wii U, the platform that has the biggest obstacles in Nintendo’s current product portfolio, will be the focus of the research.

Analyzing the Market

Video gaming consoles and portable devices are Nintendo’s mainstays. In 2013, the combined profit from these divisions was US$62,3 billion, accounting for more than two-thirds of the entire income from the video game business (which includes mobile and PC gaming as well). Sony and Microsoft, in addition to Nintendo, are the leading participants in the console sector.

The Wii U was released in the United States in November 2012, and it sold 3.4 million units globally in its first year, a dismal start when compared to the Wii, which sold 5.8 million units in the same period when it was released in November 2006. Both Sony’s Playstation 4 and Microsoft’s XBOX One were launched in November 2013, one year after the Wii U. The PS4 put on a show by selling 4.2 million devices worldwide in less than a month, almost matching the Wii’s total sales year and surpassing its successor. Microsoft had a strong launch with the XBOX One, selling 3 million devices in less than a month throughout the globe.

Methodology

  • Nintendo’s best bet right now is to address its lack of 1/3 birthday celebration video games on other platforms. The organization should reach out to key game creators and collaborate with them on the realization of their goals.
  • The production of video games from well-known brands should continue, with a focus on using the Wii U’s full range of gameplay enhancements.
  • Nintendo had a resounding success with the Wii, which explored new needs in untapped regions. This approach should be used on the Wii U as well.
  • A significant expansion of the core game collection on Nintendo’s Virtual Console platform is required, along with price reductions and themed promotional bundles.
  • Development of mobile applications for platforms like Android and iOS that complement the Wii U’s experience (for example, a synchronized Pokédex app).
  • New games for popular and under-appreciated brands like Earthbound, Wave Race, and Pilot Wings are being developed.
  • On Nintendo’s online platform, unaffiliated developers get full support.
  • In developing countries, gaming content licensing and distribution.

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