Disruptive innovation at Nintendo - The Wii

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A case study on Nint’sdisruptive strategy

and the Wii

Summary

•A history of Nintendo

•Nintendo’s top franchises

• Introducing the WiiHistory

•A definition of disruptive technology

•Nintendo’s new strategy

•The Nintendo DS

•The Wii

Disruptive technology

•Sony

•Microsoft

•Strategic recommendations

Nintendo competitors

History

History Disruptive technology Nintendo competitors

• Created as a playing card company in 1889• Created their first video game in 1978• Shigeru Miyamoto, who was 25 at the time,

designed Donkey Kong, Mario, Zelda and the Wii

A history of Nintendo

Evolution of the video game industryIntroduction to disruptive technology Nintendo and the Wii Wii competitors

Top Nintendo games

240 million200 million

93 million

History Disruptive technology Nintendo competitorsHistory Disruptive technology Nintendo competitors


PlayStation 2 (Sony) was more popular than the Xboxand the Nintendo GameCube in 2000.In 2005, PlayStation made its PlayStation 2 better,Microsoft made its Xbox better… and Nintendocreated the Wii.

Introducing the Wii

The Wii is now the most popular Nintendo home console of all time with more than 100

million devices sold

History Disruptive technology Nintendo competitorsHistory Disruptive technology Nintendo competitors

Disruptive

Technology


A definition

Incremental innovation« It’s the same, but better »

Disruptive innovation« It has nothing to do with what came before »



Instead of making gaming more complex for bored gamers, create simple games for non-gamers.

Nintendo’s new strategy



« The machine that enriches the owner’s daily life »

• No complicated set of buttons• No joystick• Multiplayer mode via Nintendo Wi-Fi Connection

For everyone: the example of Nintendogs

The DS



“Our goal was to come up with a machine that momswould want”- Shigeru Miyamoto

Not only video games, but also:• Online news and weather updates• Play SNES and N64 games online• “Exergaming”

Marketing:• Suburban housewives• Gamers on Youtube and social networks

The Wii


NintendoCompetitors


Leaders of the home console market with thePlayStation

• Launched the PSP to compete on the market ofhandheld devices

• Sony Connect (online music service)• Vaio Pocket (iPod competitor)

R&D scheme with a focus on consumer demand: thePlayStation 3, a multimedia entertainment hub.

Sony



Entered the video game business in 2001

2002 : Xbox Live, allowing subscribers to play Xboxgames with other subscribers around the world

Xbox was far behind the PlayStation 2, a little betterthan the Gamecube.

Marketing strategy for the Xbox 360:• Launched several months ahead of the PS3 and

the Wii• Worked with Japanese game designers to

counteract the Xbox flop in Japan• New design for cheaper manufacturing

Microsoft



• Sell a complete product, as Nintendo did with theWii and the 5 Wii Sports mini-games

• Stop relying on third parties to make gamefranchises and create some of their own, andfocus on quality rather than quantity

• Focus on conviviality and opinion leaders• Make less expensive consoles, with simpler

design, lower graphics, but that appeals toeveryone, not only core gamers

• Ignore the Wii: gamers often have 2+ consoles athome, there is a very large core gamer segmentand limited cannibalization

• Find a new segment, for instanceserious/educative games.

• There’s nothing like a hit game to sell a gamingstation!

Strategy recommendations


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Disruptive innovation at Nintendo - The Wii

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