Topic > Rapid Growth of Nintendo Video Games - 2298

Introduction Over the past 25 years the video game industry has grown rapidly, becoming a significant player in the media landscape, rivaling that of television. The industry is dominated by three key players, Sony, Microsoft and of course Nintendo, on which the focus will be. The central strategy behind these global giants revolves around the same key idea, that money must be made from the software as development and manufacturing costs keep the selling price of consoles at break-even compared to most consumer prices (Williams , 2002). However, the approach taken by Nintendo varies greatly from that of its two main rivals. Nintendo Co. launched its first video game system in 1983 and has since sold over 4.2 billion games worldwide, including over 669 million hardware units (Nintendo, 2014). Starting as a dominant player in the industry, Nintendo rejuvenated the video game market with the release of its first console, the NES, quickly establishing dominance. However, as new players entered the market, Nintendo has experienced a turbulent time for Nintendo over the last quarter century. Nintendo has experienced both success and failure throughout its history, watching some rivals fail and other powerful upstarts enter and achieve considerable market share. . The company's legacy is that its games are only playable on Nintendo consoles. This, they claim, is the key to their success. However, as markets change and the growing use of smartphones and tablets, fewer and fewer people are opting for gaming consoles. Will Nintendo look to the future to determine its own sustainability, will it succumb to pressure and license its games or is there another unique innovation in the pipeline to follow the infamous Wii, DS and Gameboy. Is Nintendo successful?...... middle of paper......s, so an app rather than a demo game, so simply using mobile applications as a form of marketing. Understandably, there is a strong reluctance to license software, the benefits of which are undeniable. Yet Sega adopted the same strategy when it was in trouble and has now been delisted from the market. Even Apple, one of today's most successful companies, was encouraged in the 1990s to license Mac OS, rather than limiting it to its own hardware. It seems likely that if Nintendo follows the advice it will make short-term gains but destroy its reputation and consumer base. Customers buy Nintendo hardware to play their favorite games, but if they are found elsewhere, sales will decline. Ultimately, if Nintendo doesn't create another innovative product to rival its predecessors and competitors, the future looks bleak for this aging gaming company..