Patrick Walter Victoria Cameron Conner Cameron Brandon Martel

Company Profile• Industry(s): Video games, Home

Entertainment Gaming Systems, Portable Gaming Systems, MLB Affiliate (Seattle Mariners)

• Number of Employees: 4712• Number of years: 122• Vision: “Nintendo continues to make

efforts for the growth of the home entertainment industry with a mission that is ‘to pleasantly surprise people and put smiles on the faces of everyone involved with Nintendo’." – Satoru Iwata President/ CEO of Nintendo.

COMPANY PROFILE

Financial

COMPANY PROFILE

SALE

S(USD

)

EXPENSES(U

SD)

NET INCOME(U

SD)

TOTAL ASS

ETS(USD

)

TOTAL LIABILI

TIES(USD

)0

5000000

10000000

15000000

20000000

25000000

20112010200920082007

Five Year Financial Analysis

Fiscal Year EndsMarch 31st

Stock

COMPANY PROFILE

Future Plans

COMPANY PROFILE

Nintendo Wii U:•Next generation Wii console featuring 6.2” screen in controller•Addition of second gaming screen creates multitude of entirely new video game experience. •Adding to multiplayer gaming with each player having a different private screen for viewing.

Demand• 86.01 million Wii systems sold (March 31st 2011)• 146.42 million DS systems sold (March 31st 2011)• DS sales exceed PSP sales• Demand for previously popular games such as Mario kart, Zelda, and

other games featured for the N64 have decreased after being poorly readapted to new generation systems such as the Wii

• Less demand for unknown/less popular gaming titles

THE MARKETPLACE

Top 4 selling games for Wii:• Wii Sports• Wii Play• Wii Sports Resort• Mario Kart Wii

Main Competitors

THE MARKETPLACE

Sony Microsoft

Sony

• Approximately 80% of PlayStation 3 consoles sold use online game play

• PlayStation Portable offers array uses including online gaming, TV shows, and Movies

• PlayStation offers much larger variety of gaming genres including: sporting, strategy, survival, horror, first person shooter, arcade, action, adventure, fighting, puzzle and casino/gambling

THE MARKETPLACE

Microsoft

THE MARKETPLACE

• Microsoft has a much larger spectrum of markets outside of the gaming industry

• Xbox Kinect functions similar to Nintendo Wii providing an easy substitute (Buyer power)

• Kinect has a better reputation for gaming experience, out performing Wii’s motion sensors

Apple

THE MARKETPLACE

• Iphone 4, Iphone 4S, and Ipad2 offer features such as faster touch response better graphics, and better performance with new Dual core A5 chip

• Apple Store has endless quantity of games and applications available

• Iphone’s wide diversity of abilities attract a wider scale of customers and give it the All-in-one appeal

Internal Conclusion

THE MARKETPLACE

• Nintendo Profits dropped by a third in the last year• Experiencing price drops for products lower than expected demand

(Nintendo 3DS)• Low stocks show Nintendo's failure to impress and appeal to

investors• 3DS features many impressive abilities such as 3D visuals without

use of glasses and a variety of features included in devices previously absent in Nintendo handhelds

• 3DS lacks adaptation of previous games reducing gaming experience• Low battery life of 3DS and poor joystick liability of Wii controller

contributes to loss of customer loyality• High cost for hardware and software

Internal Conclusion

THE MARKETPLACE

Take advantage of:• 55% of gamers play on handheld systems• Average age of gamers is 37• Sporting/Action games are best selling genres• 25.1 billion dollars spent on gaming industry of

that 15.9 billion is on software the rest on hardware and accessories (2010)

• Loss in sales in Europe/Japan/USA for hardware and software

Outside of the Marketplace

THE BROADERENVIRONMENT

Potential Opportunities and Advantages

Potential Threats and Disadvantages

External Forces

THE BROADERENVIRONMENT

Economic Forces:•Nintendo’s sales are not at risk of fluctuations in the economy and interest rates•Low manufacturing costs gives Nintendo the ability to lower prices if neededSocial-Cultural Forces:•Groups of activist believe video games promote violent behaviour in adolescence which may lead to bans in some areas•Other groups blame video games for obesity epidemic and other health issues

External Forces

THE BROADERENVIRONMENT

Environmental Forces:•Environmental activist push manufacturers to use more recycled resources and less plastics which Nintendo currently uses for its hardware and accessories•Nintendo’s appeal to such groups with games such as Mario sunshine which is based around cleaning the environmentNatural Forces:• Gaming industry sees little effect from any natural forces but Nintendo did see major slow down after the 2011 Tsunami

•Wii and DS relatively low cost hardware/software•Unique use of motion detection in Wii controller•Focus on intuitive gaming experience for all ages on both Wii and DS

•Wii’s controller joystick liability•Limited selection of software•Wii and DS are losing in the online software war •Wii’s lowest quality graphics card in its generation of consoles

•Growth of market size•Penetration of new markets in Middle East, Europe, and Asia

•Losing potential customers with Wii and DS low diversity of software selection•Software developers abandoning Wii software development due to low profit projections

Analysis Conclusions

•Prestige of Nintendo name•Brand loyalty of customers•High demand•Worldwide availability•Multi-play software and hardware

•No patents on motion sensing software•Wii only gaming console of its generation with no hard drive•Lack of third party presence capability

•Quality third party support•Focus more development in online gaming

•Price drops from competitors

Analysis Conclusions

Recommendations• Push more focus into online game play• If new products such as Wii U continue to fail to impress

consumers pull back focus to handheld gaming (follow the numbers)

• Diversify game genres• Continue worldwide expansion• Continue with new innovation and outside-of-the-box

thinking• Upgrade hardware to meet the capabilities of their

competitors ( hard drive and graphics)