Marketing Management Current Events
Professor Kellie McGilvary
July 29, 2011
Nintendo is now having to compete with Apple with their new 3DS game device and are having to cut prices to be competitive with the iPad, iTouch and iPhone devices. This is very important because, “Nintendo is showing the most acute signs of pain from a wave of technologies on which games have become a central pastime, including Apple's iPhone and iPad and social games on Facebook Inc.'s social network. Those technologies tend to attract a more casual gamer with mobile-game titles like Rovio Inc.'s "Angry ...view middle of the document...
They are using data showing slow sales and even financial losses with this gaming device. The company hopes that the change in the price will “create momentum and accelerate penetration ahead of the year-end sales season” (Wingfield, 2011). The financial shortfall experienced by the 3DS sales has really hit Nintendo hard in the first quarter. Accompanied with the earthquake in May, Nintendo really will need a strong third and fourth quarter’s this year to stem the tide of losses financially.
The gaming console market is rapidly changing because of other type of devices and the company is planning on releasing new technology called “Wii U” sometime next year which they hope will change their fortune in the gaming market. This new console will come with a large tablet device that will have a touch screen, which the players will use simultaneously with a television. Nintendo must continue to innovate and find a way to stem the losses and change the tide and get their edge back in gaming consoles and software. One problem, Nintendo sees with both the Wii and DS devices are that the games are not real life type games. They use cartoon character type animated figures. This is not the current trend used by Sony, Microsoft, Facebook and Apple. Most people like the realness of the games offered by the companies mentioned above and have contributed to the weak sales for Nintendo.
The company would also benefit if they would up their offerings online for more games and the opportunity to play against friends on those games. “Microsoft operates a lucrative online game network called Xbox Live. Microsoft also boosted growth in its games business with a camera device called Kinect that lets people control games without body movements, eliminating the need for a hand-held controller” (Wingfield, 2011). The Xbox caters to the extreme gamers who favor single-person shooter games and sporting games. These...