Nintendo Co., Ltd, 2019

Abstract

Nintendo has long been one of the leading console manufacturers in the video game industry and the leading handheld console manufacturer. It has succeeded for years by creating innovative hardware, differentiating from its competitors, and targeting a wide audience. With its release of the Nintendo Wii and Nintendo DS, it created a blue ocean, the casual gamer audience. However, the rise of the smartphone and mobile games has caused Nintendo to lose sales and customers. Nintendo refused to enter the mobile game market for several years, despite the growing size of the market and increasing number of developers moving to mobile games. More and more consumers abandoned console games in favor of mobile games, including many casual gamers. Eventually, Nintendo entered the mobile game market when it was saturated and technology was rapidly evolving. Despite being a late entrant in a saturated market, Nintendo has managed to succeed financially by partnering with other companies familiar with the mobile game industry and by utilizing its brand and popular IPs. Nintendo licensed Pokémon to Niantic to develop the game Pokémon Go, which has been a large success thanks to its innovative gameplay. However, Nintendo has failed to innovate in the mobile game sector the same way it innovated with its consoles. It has failed to replicate the success of Pokémon Go, and the market is constantly changing. One area of concern is loot boxes and gacha, which have been the center of controversy and subject to government regulation. Nintendo needs a new strategy to innovate and find a new way to generate revenue from its mobile games.

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