Jake Cashion Jonathan Popa Tommy Than Michelle White

Vision & Mission Attract new user segments Provide affordable entertainment Enhance customer value Maintain profit margins Utilize innovative technology Create an active , social gaming experience

Gross Profit Margin 20% Profit Margin (40%) Profit Margin Revenue: $199 COGS: $158.60 (40%) Profit Margin Revenue: $599 COGS: $840.35 (42%) Profit Margin Revenue: $299 COGS: $425

Japanese Yen in Millions ($1 Yen = $.97 USD) Five Year Summary   2013 2012 2011 2010 2009 Net sales $635,422.00 $647,652.00 $1,014,345.00 $1,434,365.00 $1,838,622.00 Net income $7,099.00 -$43,204.00 $77,621.00 $228,635.00 $279,089.00 Japanese Yen in Millions ($1 Yen = $.97 USD)

Porter’s Five Forces Competitive Rivalry Within the Industry High Threat of Substitutes Bargaining Power of Suppliers Threat of New Entrants Medium Bargaining Power of Buyers

Key Rivals Nintendo Wii Microsoft’s Xbox 360 and Xbox One Sony’s Playstation 3 and Playstation 4 Apple and Android Devices

Macro Environments PESTLE Analysis Political Economic Social Technological Legal Environmental Political: Mostly concerned with violence in video games Economic: Industry life cycle tends to match with computer industry Social: Most video game players are young males. Nintendo tried to open up the demographic by catering to the “causal gamer”. Technological: Processor and graphics card improvements plays a major role in the market. Technology in Smart phones has created a new market for gaming. Legal: Issues with copyright, trademark and intellectual property cases Environmental: Consoles, games and accessories use a lot of metals and plastic

VRIO Analysis The Question of Value Nintendo’s high stocks and reputation allows them to grow in their product and technology development. The Question of Rare Resources are built from based users which give the advantage to enhance in their unique wireless and motion experience compared to other consoles. The Question of Imitability Nintendo games genre is easily imitated, but its reputation and style cannot. The Question of Organization Nintendo Wii current resources and capabilities in its supply chain are sufficient enough to compete with the largest players in the industry. (Sony and Microsoft)

SWOT Analysis Strength Weakness Opportunities Threats Low cost hardware/software Unique use of free motion of Wii controller Large selection of multiplayer games Weakness Limited selection of software Trailing in online experience opportunities Weak graphic compared to other consoles Opportunities Leading game console brand image Leading of “all age” games attracts family and friends play Attract many consumers because lower unit price sales compared to others Threats High competitor units in market Software developers abandoning Wii software development due to low profit projections

Porter’s Analysis of Three Generic Strategies Narrow Market Scope Broad Market Scope Uniqueness Competency Low Cost Competency Developed the first motion sensor controller system Competitors quickly implemented improved controller systems including voice command Differentiation Strategy Lower cost of production due to less robust hardware Able to provide lower price than Microsoft and Sony given their more built out, higher tech consoles Cost Leadership Focused on market segment of gamers not interested in expensive hardware Focused also on non-gamers, brought on the development of the motion sensor controller system and interactive gaming Competitors more focused on power user gamers, expensive hardware and HD graphics Competitors also encouraged and funded development of more immersive and engaging games with intricate storylines and intense graphics Segmentation Strategy

Diversification Failed Attempts: Started as playing card company in 1889, but was abandoned as a business venture by 1970s Late 1960s saw attempts at a “Love Hotel”, TV network, a Taxi service, and also an instant rice food product. Were able to make money with these ventures to get by, but unable to sustain growth until the creation of the video game industry Ran Nintendo Power magazine from July 1988 until December 2012 Present: Primarily focused on video game hardware and software manufacture and development globally Majority owner of the Seattle Mariners of Major League Baseball in the US Joint venture with Chinese firm to manufacture and sell similar game console There is a push from investors to make new attempts at diversification, but there is little current activity in that arena

Acquisitions, Joint Ventures & Divestitures A software developer like Square Enix, Ubisoft, or Gearbox Software Could help provide insight into the development of competitors games, hardware, etc. A mobile game developer like Rovio or Glu Could help with marketing or further monetizing games in the handheld market Divestitures: Discontinue Wii production Focus on WiiU and 3DS Joint Ventures: Large and ever growing list of development partners, most notably: Bandai Namco Games, Square Enix, and Game Freak Several subsidiaries involved in the video game industry, most notably: Creatures, Inc., Nd Cube, and Retro Studios. Recommend to continue to rely on these types of relationships for all future projects

BCG Portfolio Matrix Nintendo 3DS WiiU Seattle Mariners Wii Industry Growth High Low Stars Dogs ??? Cash Cows Wii Seattle Mariners WiiU Nintendo 3DS Market Share Low High