...Nintendo, Co Ltd. (NTDOY) By: Sarah Thompson For Dr. Eberle Principles of Finance Research Paper November 22, 2014 Table Contents Pages Title Page…………………………………………………………………………………...1 Table of Contents……………………………………………………………………...……2 Brief Introduction & Organizational Structure…………………………………………. …3 Brief Discussion of Products, Services and Markets ……………………………...…….4 Financial Statement Summary………………………………………………………...…....5 Ratio Analysis /Interpretation / Capital Structure ………….………………………..……..6-8 Stock Valuation……………………………………………………………………….….....9 Growth Strategy & Tactics…………………………………………………………………10 Risk Exposures……………………………………………………………………………..11-12 Analyst Opinions and Professional Assessments………………………………………..13 Current Event……………………………………………………………………………….14 Conclusion………………………………………………………………………………….15 References………………………………………………………………………………….16 Brief Introduction & Organizational Structure Nintendo, Co Ltd. is a Japanese multinational consumer Electronics Company with its headquarters located in Kyoto, Japan. Nintendo is the world's largest video game company by revenue. Nintendo’s American headquarters is located in Redmond, Washington. The mission statement is “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the...
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...offering, the Play Station 3, had. I feel Sony should assess the following options. (1) Focus on catering to its niche advance game segment and focus on leveraging its progress form the previous 2 generations. (2) Respond to Wii onslaught by developing its previous generation console to include a low end offering that directly competes with Wii. (3) Partner with Nintendo and others to strengthen offerings in the gaming console space, eliminating Microsoft and creating a “co-opetition” I recommend a combination of (1) and (3) to ensure sustained dominance in the gaming console market. I would not look to option (2) since it undermines SCEI’s position as a focused differentiator (Exhibit 1 in appendix) and also because this would be a knee jerk reaction forcing Sony to play on Nintendo’s terms. Analysis As evident from Porters five forces analysis (Exhibit 2) the console market is not very attractive for new entrants. . However, there is a huge growth opportunity for established players since there is only moderate buyer bargaining power and few substitutes. To substantiate the Five Forces analysis, this paper will detail a strategy that could enable SCEI to create a sustained unique advantage in the Gaming market, ensuring profitability. Conclusions are given in bold font at the end of each section. Target market question Sony has established itself as a technology leader over the last 2 generations, building and catering...
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...previous incarnation of Nintendo Co., Ltd., in Higashikawara-cho, Imagumano, Higashiyama-ku, Kyoto, Japan. 1949 Hiroshi Yamauchi, who is now the Executive Advisor, took office as President. 1951 Changed company name to Nintendo Playing Card Co., Ltd. 1952 Consolidated the manufacturing facilities, which used to be scattered around Kyoto, in Kamitakamatsu-cho, Fukuine, Higashiyama-ku, Kyoto, Japan. 1953 Became the first company to succeed in mass-producing plastic playing cards in Japan. 1959 Moved the headquarters to Kamitakamatsu-cho, Fukuine, Higashiyama-ku, Kyoto, Japan. Developed automatic machines to paste backing papers onto the cards, and automated production. 1961 Established the Tokyo Branch in Chiyoda-ku, Tokyo, Japan. 1962 Listed stock on the Second Section of the Osaka Securities Exchange and on the Kyoto Stock Exchange. 1963 Changed the company's name to Nintendo Co., Ltd. (current name). 1968 Established Uji Ogura Plant and Nintendo Repair & Maintenance Center (originally Uji Plant) in Uji City, Kyoto. 1970 Stock listing was changed to the First Section of the Osaka Securities Exchange. 1973 Developed the Laser Clay Shooting System to succeed bowling as a major pastime. 1977 Launched Nintendo's first home video game machines, TV Game 15 and TV Game 6. 1978 Developed and started selling the arcade video game machines. 1980 Developed and started selling GAME & WATCH. Established a wholly-owned subsidiary, Nintendo of America Inc. in New...
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...2 0 0 8 Message from the President Throughout its history in the home entertainment arena, Nintendo has created unique hardware and software as one integrated entertainment product, with software being the primary driver. Nintendo has focused its basic strategy on expanding the worldwide gaming audience. To achieve this, Nintendo is encouraging as many people as possible around the world, through its unique hardware and software offerings, to experience and enjoy video game entertainment, regardless of their age, gender, language, cultural background or gaming experience. Nintendo’s first hardware launch in support of the basic strategy “Gaming Population Expansion“ was a hand-held device, Nintendo DS, which allows users to play intuitively. To drive this platform, Nintendo introduced a new software lineup, Touch! Generations, which expands the definition of video games and appeals not only to traditional gamers but also to inexperienced gamers. In the future, Nintendo plans to leverage various uses of the Nintendo DS system, such as playing in public places, and to take advantage of the high market penetration of the device. Nintendo took another step toward expanding the worldwide gaming population by launching an unprecedented video game console called Wii. Since its launch, Wii has been changing the definition of the home video game console significantly. Nintendo has been making efforts to promote Wii by developing compelling software which takes advantage of intuitive...
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...Nintendo Co., Ltd. (???????, Nintendo Kabushiki gaisha?) is a multinational corporation located in Kyoto, Japan. Founded on September 23, 1889[2] by Fusajiro Yamauchi, it produced handmade hanafuda cards.[6] By 1963, the company had tried several small niche businesses, such as a cab company and a love hotel.[7]}} Nintendo developed into a video game company, becoming what is arguably the most influential in the industry, and Japan's third most valuable listed company, with a market value of over US$85 billion.[8] Also, Nintendo of America is the majority owner of the Seattle Mariners Major League Baseball team.[9] The name Nintendo can be roughly translated from Japanese to English as "leave luck to heaven".[10] As of October 18, 2010, Nintendo has sold over 565 million hardware units and 3.4 billion software units.[11] Contents * 1 History o 1.1 As a card company (1889–1956) o 1.2 New ventures (1956–1974) o 1.3 Electronic era (since 1974) + 1.3.1 Handheld console history * 2 Infrastructure o 2.1 Key Executives o 2.2 Offices and locations * 3 Software development studios o 3.1 First-party studios o 3.2 Second-party studios o 3.3 Former affiliates * 4 Policy o 4.1 Emulation o 4.2 Content guidelines o 4.3 License guidelines o 4.4 Seal of Quality + 4.4.1 NTSC regions + 4...
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...Journal of Economic Geography Advance Access published June 22, 2005 Journal of Economic Geography (2005) Page 1 of 30 doi:10.1093/jeg/lbi001 Video games production networks: value capture, power relations and embeddedness Jennifer Johns* Abstract This paper has two main aims. Firstly to conceptualize the production networks of the video games industry through an examination of its evolution into a multi-million dollar industry. Secondly, to use the video games industry to demonstrate the utility of Global Production Network approaches to understanding the geographically uneven impacts of globalization processes. In particular, three key notions of value, power and embeddedness are used to reveal the most powerful actors in the production network, how they maintain and exercise their power, and how the organization of production is manipulated as a result. It is argued that while hardware production is organized by console manufacturers using truly global sourcing strategies, the production of software is far more complex. In fact, software production networks are bounded within three major economic regions: Western Europe, North America and Asia Pacific. This paper seeks to explain how and why this has occurred. Keywords: video games, global production networks, value, power, embeddedness JEL classifications: L14, L23, L82 Date submitted: 4 October 2004 Date accepted: 12 April 2005 1. Introduction The video games industry1 was born during the early 1960s and has rapidly...
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...2004, Nintendo had a number of strategies available to change the company position in the market. It had become more than clear that following the same tactic would not allow them to overlap its competitors. In order to growth further, Nintendo could integrate the opportunity to reduce costs and expand into other markets at the same time. Secondly, and maybe most promising, they could explore different consumers segments, which would enable Nintendo to reach market opportunities that had been ignored by Sony and Microsoft so far. VERTICAL INTEGRATION After analyzing its core competences, the costs, benefits and risks involved, Nintendo developed a strategy based on internalizing as much as possible gaining substantial influence in the final products. This allows the company to outsource primarily activities in which either they possess a low level of core competencies and/or transaction costs show clear disadvantages in internalizing. Nintendo follows a fabless production model (derived from “fabrication-less”) which means that all production processes are outsourced to external suppliers and production factories and then sent and assemble in Nintendo-owned factories. By avoiding investing money on expand vertical, the company reduce their transaction cost by outsourcing the manufacturing and still manage to maintain lower retail prices than competitors. This result in a different vertical integration compare to the previously existing model allowing Nintendo to succeed...
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...Summary Nintendo entered the video game market in 1979 and has been a top competitor ever since. In 2006, with the release of the Nintendo Wii, they secured their competitive advantage in the video game industry. The Wii was created to establish a new standard in game control, using innovative and unprecedented interface with the Wii remote. The remote’s motion sensor capabilities allowed the user to interact and manipulate objects on the screen by moving and pointing the remote in various directions. It really changed the way games were played. In 2010, they were the market leader of that generation of video console sales growth, ahead of Microsoft and Sony. By the fall of 2010, Sony and Microsoft were starting to gain on Nintendo’s competitive advantage when they came out with their own gaming systems that had innovative controllers along with much better graphics. If Nintendo wants to keep their competitive advantage, they will need to reevaluate their strategies. External Environment If a company does not keep up with changes in the external environment, it becomes difficult to sustain competitive advantages. There are two components to the external environment to analyze. The general environment, which consists of demographic, sociocultural, political/legal, technological, economic and global conditions; and the competitive environment, which includes rivals, suppliers, customers and other factors that may directly affect a company’s success. Nintendo used the...
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...objective that stands in front of our project is to clarify the present situation on the market of video console games. To present the strategies of the three main rival firms-Sony, Nintendo and Microsoft, to see their advantages and disadvantages, to see what their mission statement is, to see who are their customers and in which market segments the companies are trying to penetrate or have already penetrated. At the end we are going to try to predict the future development of the battle. We are also going to compare them in the above mentioned spheres, with the help of a competitor analysis. Conclusions are going to be derived after every paragraph. In order to do that we are going to use different methods including- SWOT analyses, PEST analyses etc. There were two different variants how to structure the text- first to include the PEST and SWOT analysis in the text for every firm or second variant to add it after the analysis. The second way was chosen because we decided that using this method it will be easier to compare the firms. Additionally we are going to present the information in the most understandable way by a PowerPoint Presentation. Content: 1. Introduction page 2 1.2 Profile of the gamer page 2 2. Microsoft page 3 3. Nintendo page 4 4. Sony page 6 5. Competitors analysis page 8 6. PEST analyses page 9 7. SWOT analyses...
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...industry in nearly 12 months, Arvind Bhatia, an analyst at Sterne Agee & Leach Inc., said in a research note today. The industry is gearing up for the peak holiday shopping season beginning in November. Among nearly a dozen tent-pole game titles from major developers, Microsoft Corp. (MSFT) releases the next installment of its $3 billion Halo franchise, while Activision Blizzard Inc. (ATVI) will begin selling “Call of Duty: Black Ops II.” Console Sales Microsoft held the lead in console sales in September for the 21st consecutive month. The Redmond, Washington-based company said in a separate statement that U.S. retailers sold 270,000 of its Xbox consoles last month. That’s down 38 percent from 438,000 players sold a year earlier. Nintendo Co., based in Kyoto, Japan, said in its own e- mailed statement that sales of...
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...[MARKETING FUNDAMENTAL: THE SUCCESS OF THE NINTENDO] | | Summary Introduction: 3 I. General presentation: Nintendo 3 II. Porter´s model: 4 I. The Substitution Products : 4 II. The competition 5 Sony: 5 Nintendo: 5 Microsoft: 5 III. The Positioning: 6 The similarity matrix: 6 Perceptual map of Nintendo DS: 6 IV. Segmentation: The reasons of success 8 Swott : 8 Operational Segmentation 9 Why marketing communication campaign was a success? teddy 10 V. CONCLUSION: Recommendations for Sony and PSP 10 Introduction: A portable console is a video game console designed for ease of transportation. It differs from the old « classic » console in its compact design, bundling the screen, control buttons and the speakers. During the 1970s and 1980s, several companies such as Coleco and Milton Bradley offered a combination of portable and non-portable (requiring a support to be raised) electronic games. The original portable models were limited to a single game built into the machine itself and thus not meeting the multiple gaming capabilities of current portable machines. Milton Bradley Microvision introduced in 1979 is considered as the first real portable console with exchangeable video game cartridges. The Nintendo Company has dominated the handheld market since the release of its Game Boy in 1989. Nintendo is often seen as the company that made this console, popular. Unlike the PC market, the console manufacturers are not as numerous...
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...industry is the economic sector involved with the development, marketing and sale of video and computer games. It includes video game consoles, game software, handheld devices, mobile games and online games. The video gaming industry has been growing exponentially in recent years with Sony, Microsoft and Nintendo competing for the higher profits in the market. This essay will analyze each of the five forces acting on the industry: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and the competitive rivalry among existing firms. Then it will be determined if the video game industry is still an attractive industry for Sony. The video game industry has high entry barriers because of its high research and development costs, and capital investment needed to start a business in the console industry. The cost required to develop and manufacture a product that could be a decent competitor in this market is too great for a non-established company in this industry. The technology that is needed to be successful is too advanced for new competitors to achieve. For this reason, the threat to Sony, Microsoft and Nintendo of new entrants, was not very high in 2008. Additionally, Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s gaming systems were very well established names in the industry. The prestige of these products was so strong that it would be extremely difficult for a new company to enter the field successfully...
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...FARHOOMAND NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY For some time we have believed the game industry is ready for disruption. Not just from Nintendo, but from all game developers. It is what we all need to expand our audience. It is what we all need to expand our imaginations. - Satoru Iwata, president of Nintendo Co. Ltd1 In the 2008 BusinessWeek–Boston Consulting Group ranking of the world’s most innovative companies, Nintendo Co. Ltd (“Nintendo”) was ranked seventh, up from 39th the previous year. 2 This recognised Nintendo’s significant transformation into an innovative design powerhouse that had challenged the prevailing business model of the video game industry. In 2000, when Sony, Microsoft and Nintendo (the “big three” of the video game console manufacturers) released their latest products, Sony's PlayStation 2 (“PS2”) emerged as the clear winner, outselling Microsoft’s Xbox and Nintendo’s GameCube. In 2006, a new generation of video game consoles was introduced by these players, precipitating a new competitive battle in the industry. Microsoft and Sony continued with their previous strategies of increasing the computing power of their newest products and adding more impressive graphical interfaces. However, Satoru Iwata, president of Nintendo, believed that the video game industry had been focusing far too much on existing gamers and completely neglecting non-gamers. Armed with this insight, the company repositioned...
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...Addicted to Video Games When you think of video games, you don’t think of an addiction, but video games can be as addictive as gambling or alcohol. When my son was around 3 years old, I bought a PlayStation video game system and he would sit and watch me play. One day my son asked me if he could play, it was a 2 player game, so I showed him how to play. I would play from time to time, and as time went on he became better and better. It was like nothing I had ever seen, he was a natural. As the years went by and my son grew older, he was playing more games and he had asked for a Nintendo Gameboy. He soon grew bored of it, he asked for a Nintendo Wii for Christmas and Santa made his wish come true. As the months went by, as a reward for doing chores he would receive a game instead of money. Before long, he had every accessory and he had received 22 games. The years passed and again he grew bored of the Wii, so he asked for the Xbox 360 video game system, and of course I gave in. He became more involved in playing games as the years went by. He always would ask for the newest games, the newest wireless controllers, or headsets. He began to play more in the multiplayer online game venues, and had a list of friends from all over the world. He plays the Xbox any and every chance he gets, beating complete games in as little as 4 hours, or playing campaigns in the online multiplayer area for hours on end. When he plays the game so much, it tends to get in the way of his everyday...
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...it's for everyone, including the hardcore gamers. This isn't true. Therefore, everyone wants one. it appeals to both casual and hardcore gamers and has tons of casual games like MySims and WiiPlay and than nintendo busts out its killer apps like galaxy and brawl Hmm... innovative control scheme and abigger focus on casual gamers, non-gamers, and women... while continuing to bring out hardcore games * price advertising uniqueness ability for everybody to play Introducing something new to the market - Controller Getting mainstream help - Media (south park, Elderly people playing, helping stroke victims) Helping people loose weight - WiiFit, WiiSPorts Its cheaper than competition Bringing back old gamers. a big thing you should talk about is their family name. for more then twenty years nintendo has been seen as always a good choice. parents knew if they would get their kids a maro game they choose quality. explain their franchises that call to everyone. if you want to seem cool you should qoute that line about mario in that one video of that guy talking to snake explaining how mario is known through out the world. also talk about how nintendo managed to be the best thing in handheld gaming since the gameboy was created and never lost a generation * Nintendo completely changed their look in gaming, staring with the DS. The DS introduced a new way to play games. Not only is it intuitive, it can also make games easier and more accessible, like a PDA. This first opened...
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