Disruptive innovation at Nintendo - The Wii

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A case study on Nint’s
disruptive strategy
and the Wii

Summary
•A history of Nintendo
•Nintendo’s top franchises
•Introducing the Wii
History
•A definition of disruptive technology
•Nintendo’s new strategy
•The Nintendo DS
•The Wii
Disruptive
technology
•Sony
•Microsoft
•Strategic recommendations
Nintendo
competitors

History Disruptive technology Nintendo competitors
• Created as a playing card company in 1889
• Created their first video game in 1978
• Shigeru Miyamoto, who was 25 at the time,
designed Donkey Kong, Mario, Zelda and the Wii
A history of Nintendo

Evolution of the video game industryIntroduction to disruptive technology Nintendo and the Wii Wii competitors
Top Nintendo games
240 million
200 million
93 million
History Disruptive technology Nintendo competitorsHistory Disruptive technology Nintendo competitors

PlayStation 2 (Sony) was more popular than the Xbox
and the Nintendo GameCube in 2000.
In 2005, PlayStation made its PlayStation 2 better,
Microsoft made its Xbox better… and Nintendo
created the Wii.
Introducing the Wii
The Wii is now the most popular Nintendo
home console of all time with more than 100
million devices sold
History Disruptive technology Nintendo competitorsHistory Disruptive technology Nintendo competitors

A definition
Incremental innovation
« It’s the same, but better »
Disruptive innovation
« It has nothing to do with what came before »

Instead of making gaming more complex for bored gamers, create simple games for non-gamers.
Nintendo’s new strategy

« The machine that enriches the owner’s daily life »
• No complicated set of buttons
• No joystick
• Multiplayer mode via Nintendo Wi-Fi Connection
For everyone: the example of Nintendogs
The DS

“Our goal was to come up with a machine that moms
would want”- Shigeru Miyamoto
Not only video games, but also:
• Online news and weather updates
• Play SNES and N64 games online
• “Exergaming”
Marketing:
• Suburban housewives
• Gamers on Youtube and social networks
The Wii

Leaders of the home console market with the
PlayStation
• Launched the PSP to compete on the market of
handheld devices
• Sony Connect (online music service)
• Vaio Pocket (iPod competitor)
R&D scheme with a focus on consumer demand: the
PlayStation 3, a multimedia entertainment hub.
Sony

Entered the video game business in 2001
2002 : Xbox Live, allowing subscribers to play Xbox
games with other subscribers around the world
Xbox was far behind the PlayStation 2, a little better
than the Gamecube.
Marketing strategy for the Xbox 360:
• Launched several months ahead of the PS3 and
the Wii
• Worked with Japanese game designers to
counteract the Xbox flop in Japan
• New design for cheaper manufacturing
Microsoft

• Sell a complete product, as Nintendo did with the
Wii and the 5 Wii Sports mini-games
• Stop relying on third parties to make game
franchises and create some of their own, and
focus on quality rather than quantity
• Focus on conviviality and opinion leaders
• Make less expensive consoles, with simpler
design, lower graphics, but that appeals to
everyone, not only core gamers
• Ignore the Wii: gamers often have 2+ consoles at
home, there is a very large core gamer segment
and limited cannibalization
• Find a new segment, for instance
serious/educative games.
• There’s nothing like a hit game to sell a gaming
station!
Strategy recommendations

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Disruptive innovation at Nintendo - The Wii

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