Nintendo Co Ltd Essay Example | Topics and Well Written Essays - 2500 words

Nintendo Co Ltd - Essay Example In this study we will try and evaluate the key strategic issue that Nintendo is facing and what are their current strategic options. The three major players in the industry are Microsoft, Nintendo and Sony. For all the players the market is broadly being divided into two major segments such as the hardware segment and the software or the gaming segment. Though there is a major drift in sales for all the three major companies in the recent year we can analyze their positions and strength from the data of the previous year that is 2008. Nintendo noted a 49 percent market share for their consoles i.e. Wii and about a 73% market share for the handheld, which are called the DS. (Elliot, 2008) So it is quite evident Nintendo is a market leader in the hardware segment of the industry. Also notably there were five gaming software made by Nintendo which acquired the top ten spot of NPD software (Elliot, 2008). So the constant mix of the quality hardware and innovative software making Nintendo a prospective leader in the industry. Sony’s product in the hardware segment called the PS3 attributed a growth of 99% on ye ar-to-year basis (2008). Apart from that, though Nintendo is the market leader in the hardware segment. According to the Consumer Behavior Report of 2007 Nintendo’s consoles are readily accepted by the target consumers. But Sony’s playstation (which is their hardware console) recorded over 10 million accounts all over the world. But the USP of Sony remains with the innovativeness and varieties of gaming software they introduce with quick succession. According to Microsoft, their hardware product Xbox 360 enjoys a 49% market share in USA. Also Xbox 360 title, a product in the software segment accounts for 34% in software sales for July 2008. (Elliot, 2008) Though Nintendo is more successful in developing game platforms, but the real focus of the company is on producing games rather than only platforms. (Ackerson, 2008).