Rapid Growth of Nintendo Video Games

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Over the last 25 years the video game industry has grown rapidly, becoming a significant player in the media landscape, rivalling that of television. The industry is dominated by three key players, Sony, Microsoft and of course Nintendo, which will be centred on. The core strategy behind these global giants revolves around the same key idea, that money is to be made in software as development and manufacturing costs keep the consoles break-even sales price from most consumer price points (Williams, 2002). However the approach taken by Nintendo varies considerably from its two main rivals.
Nintendo Co. launched its first video gaming system in 1983 and has since sold over 4.2 billion games worldwide, over 669 million of which being hardware units (Nintendo, 2014). Starting as the dominant player in the industry, Nintendo rejuvenated the video game market with the release of its first console, the NES and quickly established dominance. However with new players entering the market, a turbulent ride was caused for Nintendo throughout the past quarter of a century.
Nintendo has experienced both success and failure throughout its history as it watched some rivals fail and other new powerful ones enter and achieve sizeable market share. The legacy of the company is behind their games only being playable on Nintendo consoles. This, they claim, is key to their success. However with changing markets and increased usage of smartphones and tablets, less people are opting for games console. Nintendo looks to the future to determine their sustainability, do they succumb to pressure and license out their games or is there another unique innovation in the pipeline to follow the infamous, Wii, DS and Gameboy.

Is Nintendo Successful?...

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...s, so an app rather than a demoed game, therefore merely using mobile applications as a form of marketing.
Understandably, there is a strong reluctance to license out software, the benefits of which are undeniable. Yet Sega took the same strategy when they were struggling, and are now wiped from the market. Even Apple, one of today’s most successful companies, was encouraged in the 1990s to license Mac OS, rather than limit it to their own hardware. It seems likely that if Nintendo does follow advice it will reap short-term gains but will destroy its reputation and consumer base. Customers buy Nintendo’s hardware to play their favourite games, but if these are to be found elsewhere, sales will Drop. Ultimately if Nintendo doesn’t establish another ground-breaking product to rival its predecessors and competitors, the future looks bleak for this old gaming company.
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