Nintendo’s Wii gaming console was launched to the public late 2006. As of today, the Wii has become the best-selling latest generation console system in the world (Nintendo, 2007). Although, the Nintendo Wii is a successful product, heavy competition and future gaming trends threaten Nintendo and Wii’s future success. Since the rise of Sony’s PlayStation and Microsoft’s Xbox, Nintendo has seen declining sales with their video game and consol systems almost resulting in Nintendo’s demise. By using the BIRAC method, recommendations will be made to continue the Wii’s success benefiting Nintendo.
Predicting the future can be a difficult task for a business. So, how are Companies able to predict the future successes or failures of their products or services? There are several answers to that question. Many companies analyze factors like the economy, misunderstood sales pipeline, customer budget cuts, competition, market shifts, product inadequacies, supply shortages, and historical stats to anticipate sales (SalesVantage.com, 2008). The key to analyzing the Wii’s future success will have to come from Nintendo’s past. Analyzing Nintendo’s and Wii’s history is the “background” portion of the BIRAC method.
Nintendo Company Ltd., is a limited company, headquartered in Kyoto, and is a Japan-based company engaged in the leisure equipment business. The Company has two business segments. The Leisure Equipment segment is engaged in the development, manufacturing and sale of portable and home use game machines as well as game software. The Others segment is engaged in the manufacture and sale of poker cards and karuta (Japanese-style playing cards), the sale of Pokemon (A Japanese animation character) goods, the management of intellectual property rights, the provision of electronic registration services of domestic machines, and others. The Company has 23 subsidiaries and five associated companies (Google, 2008).
In 2007, Nintendo had about 3,400 employees generating 2.5 million each (Cable News Network, 2008). As mentioned before Sony’s Playstation and Microsoft’s Xbox are the Wii’s greatest competitors. Sony has approximately 180,500 employees with 3.1% of them in the video game business segment (Sony, 2008). Microsoft has approximately 89,900 employees with an unknown amount working for their Microsoft Game Studios division. The Wii, Playstation, and Xbox are aimed at the individual consumer.
By the 1950’s, with the company still under the Yamauchi family control, it became known as Nintendo Playing Card co, perfecting the process of producing plastic coated playing cards and, by 1959, was using Disney characters on the back of its merchandise.