Nintendo case study Persuasive Essay Example

the market.

The Wii aimed to transform the home console market by appealing not only to traditional video game players. Its success was attributed in part to its distinctive control scheme, which utilized a remote control with motion sensing capabilities rather than a conventional controller. This technological breakthrough resulted in an original platform that has made it easier for new players to join. A prime example of this is exemplified by Wii Sports, which features 5 mini-games, including Wii-Tennis, as part of its bundled software package.

The Wii revolutionizes traditional tennis video games by enabling players to physically swing the Wii remote rather than relying on digital buttons. The on-screen avatars take care of character movement, automatically running towards the ball. This highlights the Wii's philosophy of simplifying video games and making them more user-friendly. While Microsoft's Xbox 360 and Sony's Playstation 3 are Nintendo's main competitors in the home console market, Nintendo has adopted a unique marketing strategy compared to its rivals.

Both Microsoft and Sony prioritize technologically advanced products that focus on high-quality audio/visuals, advanced features, and innovative technology for the traditional video-gaming market. In contrast, Nintendo targets the casual market with their Wii console, specifically females and older players. Nintendo's aim is to bring back non-gamers to gaming by prioritizing fun over traditional video gaming.

According to Fain (2007), cited by Osterwalder (2007), Nintendo prioritizes the consumer's emotions over its products. The company aims to expand its customer base beyond young male gamers by targeting lapsed gamers instead, as explained by Berkley (2009). The Wii's value proposition revolves around fun, affordability, and providing a high value experience to customers. As Frazier (2008) states, cited

in Schoenberger (2008), Nintendo focuses on delivering a fun, user-friendly, and engaging gaming experience that appeals even to casual players who may not be interested in hardware features.

The Marketing MixProduct: Nintendo has adopted a distinct outlook in comparison to Sony and Microsoft for their new console. With no hard disk or DVD player, minimal connectivity, and relatively low processor speed, the Wii is an affordable option (Osterwalder, 2007). Its foremost competitive edge is the revolutionary motion-sensitive wireless controller, the Wii Remote, which recognizes basic tilts and motion. This integration of the player's movements into the video game delivers an unparalleled gaming experience.

According to Ostelwalder (2007), Nintendo has introduced a feature that opens up the console market to inexperienced gamers. Additionally, the design of the controller has been simplified to make it less intimidating and more engaging. To increase convenience and reduce the likelihood of accidents, Harris (2008) mentions that silicon cases and wrist straps have been added to the Wii remote. Aesthetics are also important to Nintendo, who opted for a sleek white exterior instead of the bright, toy-like colours used on the GameCube.

The design team ensured the device was compact enough to sit beside the TV, with a motto of not making it too large that customers would hesitate to leave it there (Gaudiosi, 2007). The software and hardware share similarities with the Wii brand, which appeals to a broader market. Wii Fit, for instance, is a recent example of this. It introduced the Wii Balance Board that functions as a scale with multiple pressure sensors. These sensors allow players to weigh themselves and apply pressure to specific points on the board, which is

then recognized. The Balance Board is widely used in Wii games, including fitness activities categorized into Yoga, Aerobics, Strength, and Balance. The Wii package comes with the console, necessary cables and controls, and the Wii Sports disc.

According to Harris (2008), Wii Sports was a crucial factor in increasing the system's sales, and the package strategy has been so effective that the core components have remained unchanged for two years since its launch. The box's artistic design is intentionally minimalistic, featuring only the Wii console and brand logo on a white background, along with a Wii Sports sticker to highlight the game's inclusion.

The packaging for the Wii was changed to prominently feature "Wii Sports," solidifying its importance as an integral component. This was meant to increase the overall value perception for consumers (Harris, 2008). In order to appeal to a non-traditional market, Nintendo made sure not to overprice the system. This meant cutting costs on features like Blu-Ray and Dolby 5, which were expected for a generational upgrade.

Nintendo opted not to adopt modern features such as high-definition game playback, a hard-drive, and 1 sound. Instead, they chose to utilize older technologies that were deemed "good enough" in order to maintain a competitive price advantage over competitors and attract a wider range of customers. The Wii was launched with a price tag of $250 USD which was almost half the cost of Playstation and Xbox, allowing Nintendo to still make a profit on the sale of all hardware despite the selling cost being significantly less than the cost price (Harris, 2008).

According to Shilov (2006), the manufacturing cost of the product was estimated to be $160

USD, which later decreased to $88 USD as stated by Harding (2009). This is unusual for the industry as many consoles are initially introduced as loss-leaders and profit is earned through the sale of software and peripherals. However, it can happen towards the end of a product's lifecycle when manufacturing costs have decreased. Nintendo has taken a customer-based approach in determining the price.

The competition is not profitable due to the expensive technology they offer, resulting in a loss for each unit sold. On the other hand, Nintendo has provided greater value to consumers by introducing innovative controllers, software, and an intellectual property library at a lower price point. This has enabled them to penetrate the market quickly and appeal to price-sensitive consumers while avoiding competitive backlash from rivals who cannot match the Wii's price due to its already low production cost.

Nintendo's strategic plan has enabled them to remain competitive throughout the lifespan of the current console generation. In terms of promotion, Nintendo has implemented various initiatives to make Wii gaming more widely known. These include the Wii Ambassador Program, which targeted three different groups of individuals (multigenerational families, hardcore gamers, and modern mothers) and aimed to provide people with the opportunity to try Wii for the first time and share their experience with others. The company has also launched the Wii Mall Experience, which involved setting up interactive Wii kiosks in numerous shopping centers throughout the USA. Additionally, Nintendo's promotional efforts have included getting Wii featured on the front page of The Wall Street Journal, appearing in a South Park episode, and being highlighted in People magazine's gift guide issue. (Jeremy, 2006; Jeremy 2009)

Jeremy (2006)

has listed several initiatives which consist of Wii Urban Tour, gaming hours incorporated in fashion and music events, and advertisements in sports and lifestyle magazines.