Nintendo: reviving a company, transforming a market

Abstract

Nintendo was founded in 1889, and gained success in the early 1980s for its Nintendo Entertainment System, its Super Nintendo and its Nintendo64. In the mid-1990s however, Sony introduced the PlayStation, and Microsoft came up with the Xbox. In turn, Nintendo quickly lost its market shares to its competitors, but nevertheless fought for its survival, and reinvented itself by launching a revolutionary product called the Wii. The latter was a success and allowed Nintendo to become competitive again. How did Nintendo make its way from product loser to product leader?

Nintendo implemented a marketing strategy that led to an instant hit with demand surpassing its counterparts. But is this hit just a fad, or will Nintendo be able to keep its customers' loyalty in the long term? Its competitors are also trying to innovate in order to fight against Nintendo's wide expansion in the game market. Will Nintendo be able to face the competition and maintain its leadership position?