67
-14%
6,086 $m
Electronics
Nintendo is determined to stay true to its roots, focusing on “gaming population expansion” while strategizing forward-thinking approaches to get ahead of its industry’s current struggles. All-in-one devices, such as smartphones and tablets, have stolen much of the game sector’s thunder; new business models like free-to-play have emerged; and competitors have announced high-powered next generation systems. Its new generation Wii U received mixed reviews and, without a strong cast of compelling games, it did not perform as well as anticipated. The Nintendo 3DS may be the leading platform in Japan, but the success has not yet been replicated overseas. Its short-term outlook rests on the titles it offers, and the brand hopes that a slew of new releases will drive sales outside Japan. While adopting some of the changing paradigms of the market, like advanced communication features and downloaded software delivery, it has been reluctant to make any dramatic changes to its previously successful business model (although Nintendo has announced an experimental entry into the free-to-play market). CEO Satoru Iwata has also mentioned the possibility of integrating e-payment systems such as Suica (East Japan Railway’s e-money card) to allow payments for products and services, add-on content for games, or pay-per-view options in VOD (Video on Demand) services. Only time will tell if this is enough as the traditional console industry faces an era of transition.