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Nintendo and Their Financial Woes (Marketing Researc

15 Jan

Nintendo Company History and Background

Nintendo has a history that spans over 120 years.  Nintendo was founded as Marufunku Company in 1889 to sell Japanese game cards. It undertook the Nintendo name in 1959, as the Nintendo Playing Card Company. The company became a public company in the 1950’s, and took its current name, the Nintendo Company, in 1969. By the end of the 1970’s Nintendo entered the new video game field by a license agreement to make Magnavox’s pong technology. From there the company moved to arcade games, and then established the American subsidiary Nintendo of America in 1980. The company’s first commercial video game hit was Donkey Kong, followed by Super Mario Bros. The company’s next successful item was the Famicom, a technologically advanced home video game system. In Japan, the system sold 15.2 million consoles and 183 million game cartridges. It successfully launched in the United States in 1986, under the name Nintendo Entertainment System. In order to protect its intellectual property and copyright, Nintendo established strict licensing policies for all of its software developers. Licenses are required to have approval of every game they designed, have to buy the blank cartridges from Nintendo and also had to agree not to make games for any of Nintendo’s competition. (Hoovers)

In order to keep up with the growing game market, Nintendo began developing new items to stay ahead of the competition. Their next creation was the Game Boy in 1989 followed by the Super Nintendo console in 1991. The next big release for Nintendo happened in 1996, with the release of the N64 game system. Around this time Nintendo also teamed up with Microsoft and Nomura Research Institute on creating a satellite based internet system for Japan.  Two years later, Nintendo released Pokémon as well as The Legend of Zelda Ocarina of Time. (Hoovers)

In 2001, after Nintendo bought a 3% stake in the convenience store chain Lawson’s in 2000, it launched its long-awaited GameCube console system. In the release of the GameCube, Nintendo priced the console at $100 less than its closest competitors, gaining market share. Also in 2001, the company released an updated handheld system called the Game Boy Advance. In 2003 saw Nintendo begin to take a new direction as a company. They began to cut royalty rates that were charged to developers in order to offer a wider range of video game titles. It also bought a 3% stake in Bandai, a game developer and toy maker. In 2006 Nintendo launched its massive hit the Wii. The latest changes came in 2009, where the company ended their quality assurance program, and finally earlier this year, 2012, Nintendo ended up posting its first ever operating loss since becoming a public company. It has since launched the Wii U, on November 18, 2012. (Hoovers)

Nintendo Mission Statement:

“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 highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services.” (Nintendo Co., Ltd.)

 

SWOT Analysis

Strengths

Weaknesses

  •   During their time producing video games, Nintendo   has been one of the strongest brands in the industry.
  •   Nintendo   introduced the Wii as a more affordable, unique, social, and physically   active game console games which could be played by anyone compared to their   rivals who continued to implement cutting-edge technology to deliver better   HD graphics for sophisticated games as well as traditional gamers. (Hovers)
  •   Wii   outsold the X-Box 360 and the PlayStation 3 every month since its launch in   2006 until its decline in late 2010. (Hovers)
  •   The Super Mario franchise is the most popular   children’s game, with little to no violence, or other mature themes.
  •   The Motion Sense technology is very popular   amongst elderly people, while including even younger children with simple   intuitive controls.
  •   Nintendo has a global geographic presence.  Nintendo operates in Europe, American, and   Japan.  Nintendo derived around 39.3%   of its revenues from the US; 16.6% from Japan and 44.2% from other   countries.  Furthermore, Nintendo has a   diversified product revenue base. For instance, the company’ s handheld   hardware products accounted to 29.4% of the total revenues in   FY2011.Likewise, home console hardware (23.9%), home console software   (21.8%), handheld software (16.5%) and other products (8.3%). (Marketline)
  •   Declining   Hardware Sales–   In 2010, the Wii fell to number 3 from   number 1 that year due to the fact that U.S. sales in the first 10 months   were down 24% from the same period a year earlier.  On the other hand, the sale of Wii’s   competitor’s consoles had risen- 34 percent for X-Box 360 and 14 percent for   PlayStation 3. (Fritz)
  •   Lack of Online   Presence–   “Nintendo offers the ability to play some titles online but online players   must become friends with other Wii owner through a personalized friend code   system which is sent through e-mail, instant messaging, or a phone call–any   non-Wii form of communication).  The   process involves a potential friend sending you their own Wii’s friend   code, and then the recipient must enter it into their Wii. After that, the   process has to happen in the same way just reversed before each person will   be able to send messages to each other via the Wii’s Message Channel. This   process must be completed for every Wii game that an individual wants to play   online due to the fact that each title has its own separate friend code,   above and beyond the system’s main code.” (CNET)
  •   Sales of 3DS   hardware less than expected– Nintendo botched the 2011 launch of   the 3DS when production problems caused a delayed release of sequels to   popular games which may have tempted more shoppers to try their hands at   playing games in 3-D.  The 3DS was   released in the U.S. and Europe in March of 2011, but, by July, Nintendo   slashed the 3DS prices by as much as 40 percent to spur new sales. (Bloomberg   Businessweek)
  •   High   dependency on a few titles- Nintendo is highly dependent on   popular gaming titles for most of its revenues and their library of games is   significantly less compared to its peers.    The Nintendo Wii only offers a library of approximately 1,220 Wii games   compared to Playstation’s 2,418 titles. (Marketline)
  •   No HD capabilities- The system   uses a more powerful version of the Nintendo GameCube’s processor (480p   capabilities which can’t be obtained with Wii’s included composite AV cables)   which doesn’t have nearly as much polygon-pushing power as the Xbox 360 or   the PlayStation 3 (both had 1080p capabilities).  The Wii also lacks advanced surround sound,   instead sticking with the GameCube’s Dolby Pro-Logic II matrixed surround   (based on a stereo signal, not native 5.1). (CNET)

Opportunities

Threats

  •   Nintendo has   the attention of many non gamers–   Before games on Facebook and Smartphone’s became common, it was Nintendo that   first began to aggressively court consumers outside the traditional gamer   market. (Hoovers)
  •   Integrating   tablets into their console controllers to combine the home tablet gamers, as   well as the traditional gamers.    The new Wii U will put the company   on a more level playing field with the Xbox and PlayStation with competitive   features such as HDMI connectivity, improved graphics power, and support for   full high definition video.  Its CPU is   made by IBM and the graphics processor is from AMD.  In an attempt to continue distinguishing   itself from its competitors, the Wii U will also feature an unconventional,   6.2-inch touchscreen rechargeable controller that has motion-sensitivity and   a number of features not seen before on a standard controller (a camera,   microphone, stereo speakers, and a stylus).     The system offers features a controller that resembles an  Xbox 360 controller with the hopes of   converting hard-core X-boxers to Wii U users (Hoovers)
  •   With a more functional dual analog stick, four   front button, four shoulder button controller design, the Wii U has the   opportunity to present other genres, including the current best-selling genre   First Person Shooters. FPS games require hire sensitivity and functionality,   more than the Wii remote could provide. Nintendo can now attract this large   market.

 

  •   Rising   popularity of online gaming- “In 2009, the company Rovio released   Angry Birds. Within a year, 50 million people had downloaded the app,   spurring developers to create more engaging portable games.  Since 2009, Angry Birds has been downloaded   500 million times compared to 262 million Super Mario game sales since 1985.  In January of 2102, 64 percent of   smartphone owners download games via their smartphone, and 37 percent of   iPhone owners say they play daily via their tablet.” (Alexander)
  •   Lack of Third   Party Support-There   are fewer and fewer great games coming  to Nintendo’s platforms, which gives   consumers less reason to purchase them.    Another problem is the fact that the majority of their exclusive   titles have originated almost solely from Nintendo’s internal development teams.
  •   Exchange rate   losses-   Nintendo receives payment in a specific countries currency but it measures   and publishes its financial statements in relation to the Japanese Yen   (JPY).  In the fiscal year 2011,   approximately 83% of Nintendo’s total revenue was outside of Japan. In that   year, the company’s net sales were 1,014,345 million JPY ($11,867.8 million)   in FY2011 which is a 29.3% decrease compared to fiscal year 2010. The   contributing factors for the decline were the appreciation of the yen and the   price reduction of the Nintendo DS series hardware. Also, Nintendo witnessed   foreign exchange losses of JPY 49,429 million ($578.3 million) in FY2011.   (Marketline)

 

PESTEL+C Analysis

PESTEL+C

 
Political Recently   bills have been proposed that would censor the software and internet   industry, in an earnest effort to combat piracy and copyright infringement.   With the recent elections, supporters of the SOPA (Stop Online Piracy Act)   and the follow up ACTA (Anti-Counterfeiting Trade Agreement) have moved into   new positions, offering new opportunities for these debates to arise. In   addition a lead supporter of SOPA, Howard Berman (D-Calif.), is up for   consideration for the Secretary of State position. (Collier)
Environmental Digitial   distribution of games on the Nintendo e-Shop, reducing environmental impact   through plastics and other materials used in manufacturing
Social With   the breakout success of the Wii’s motion sensor controller, the

Demographics   playing games has broadened, with the young and old now playing more. Videogames   are becoming more accepted in our society, viewed less as toys and more as   entertainment. The Entertainment Software Association states, “The average   game player is 30 years old and has been playing games for 12 years …   Forty-seven percent of all game players are women… women over the age of 18   represent a significantly greater portion of the game-playing population (30   percent) than boys age 17 or younger (18 percent). (Theesa)

Consoles   are for more than just video games, often including DVD/Blu-Ray players,   video streaming, and even the potential for exercise and physical   rehabilitation. (ESA)

Technological The   entire video game industry is based on technology. New technology in cell   phones, tablets, televisions, computers, and the internet are all large   factors. Video games also sometimes include additional technology, such as   GPS integration, Near Field Communication, cameras, and touch screens. These   have all created new ways to play games, often mixing into the world around   you.

Consoles   have a longer product life cycle than computers. While computers are   constantly outdated, recent video game consoles have lasted about six years   before reaching the decline stage in its life cycle. There is consistent   software technological developments made during that time that give   increasingly better performance.

The   internet is very important in gaming, connecting players from all over the   world at any time. The success of many games and consoles depends on the   level of internet connectivity.(ESA)

Economic The   strong yen in recent years has resulted in losses when converting currency   from U.S. to Japan, the two of the largest video game markets.   The company was forced to take a 52.4   billion yen ($690.5 million) foreign exchange loss, due to unfavorable   exchange rates between with the dollar and euro. (Nintendo Consolidated Info)

There   is developer concern over the success of the used game market, that they are   not being compensated for their high production costs. Piracy is another   problem they face. As such digital distribution is becoming more popular,   though physical sales still represent a much larger portion.

The   disposable income of the consumers in the video game industry has an effect   on their buying behavior. For example, people who fall under a low income range may not afford to buy a video game of a   high price. Nintendo’s low manufacturing cost was   also one of the reasons for it to sell its games at a nominal price,   therefore increase its sales. (Sarkhandia)

Legal Stop   Online Piracy Act (SOPA) works to combat copyright infringement and piracy   online for all forms of media. This includes pictures, music, videos, games,   and any other copyrighted material. It has international implication and   quite broad in its reach. Those against SOPA worry much of the internet would   be censored and limited under this new broad act, and the rights of   consumers. A majority, though not all, of the video game industry was in   support of SOPA, looking to fight the piracy that had affected sales in   recent years. Though defeated, new forms of SOPA are being drafted worldwide,   and the debate rages on.

Following   the revision of the Corporation Tax Act, Nintendo and its domestic   consolidated subsidiaries have computed depreciation by the method on the   basis of the revised Corporation Tax Act over property, plant and equipment   acquired on or after April 1, 2012 since the three-month period ended June   30, 2012. (Nintendo Consolidated info)

Competition Nintendo’s   primary competition is Sony and Microsoft, with their PlayStation and X-Box   consoles. Sony also has a handheld PlayStation Vita, to rival Nintendo’s   handhelds. Though these are the competitors in the console market, the video   game industry is seeing an increase in new competitors. The tablet and cell   phone market represents a fast growing population of mobile gamers. These   gamers often play on the mobile devices they already own in the comfort of   their homes and living rooms. Lead competitors in this market include Apple,   Samsung, and HTC. Sony and Microsoft have an advantage in that they have   other divisions devoted tablets and cell phones, which allows them to   integrate their gaming divisions fluidly. Sony has the PlayStation Suite   available on some of their phone models, while Microsoft’s Windows phones include   Xbox Live connectivity. Another significant market is internet gaming,   including the myriad of Facebook games. They are all competing for often the   same gaming sales as the console competitors, except on devices already owned   by consumers.

Wii,   had a longer way to fall than its competition. After its late 2006 launch,   the Wii dominated both hardware and software sales charts. It did so   primarily by attracting consumers that hadn’t been a big part of the   videogame market previously. But around 2009, those consumers started   shifting over to mobile phone and Facebook games in a big way, leaving   Nintendo nowhere to go but down from its historical highs. This transition   has also caused a lengthy dip in sales for the portable system segment, which   Nintendo has traditionally dominated. (Orland and Technica)

 

Management Problem:

Nintendo corporation is suffering from its first ever operational lose for the fiscal year that ended in March, 2011. The company announced that they had net sales of $12.35 billion, which is down 29.3% compared year-over-year. Nintendo also stated that the company’s net income fell over 66% to only $946,110. Another hit for the company was that hardware and software sales also were down compared to year-over-year comparisons. During the three month period (April-June 2012), Nintendo sales for the Wii were down to only 710,000 compared to 1.6 million the previous year. The company did announce that sales for the Wii have hit 96 million since its launch, more than the Nintendo Entertainment System and Nintendo 64 combined. (Haselton)

 

 

 

 

 

 

Total Sales and Market Share for Each Year – 7th Generation

Units in Millions (VG Charts Data)

                       

Another hit for Nintendo is the that sales fell nearly 24% compared to last year, while Rivals Sony and Microsoft both reported an increase in sales. Sony’s PlayStation 3 reported an increase in sales around 14% while Microsoft reported that Xbox 360 sales were up nearly 34%. Another hit was that Nintendo has lost an incredible amount of Market Share. Three years ago, the company firmly head the #1 in the market accounting for close to half the market sales (45.7%), while today it was fallen to last place, accounting for only 21.3% of the market sales. (Reisinger)

Nintendo entered the sixth generation video game market with under-developed motion sensation technology compared to the full motions-free camera technology that Microsoft developed to broaden the Xbox 360’s audience beyond its typical gamer use. (Pham)  “Yusuf Mehdi, the CMO of Microsoft’s Interactive Entertainment Division, announced on Tuesday that more than 67 million Xbox360’s have been sold since the console launched in 2005, and it has generated more than $56 billion in sales. The motion sensing input accessory, Kinect, has sold more than 19 million units and the company’s Xbox Live service now boast 40 million members. Xbox users are spending more time on the system and are averaging 84 hours of usage each month. Mehdi also revealed that Microsoft holds a 47% market share of the current-generation console market, however he did note that sales, while continuing to increase year-over-year, are slowing down.” (Graziano)

Marketing Problem(s):

1.)    Nintendo Wii doesn’t support features (HD gaming, DVD/CD/Blu-Ray playback) like the competitors seventh-generation consoles.

“The system uses a more powerful version of the Nintendo GameCube’s processor, and it doesn’t have nearly as much polygon-pushing power as the Xbox 360 or the PlayStation 3. While Microsoft’s and Sony’s consoles support high-definition outputs of up to 1080p, the Wii can hit only the GameCube’s ceiling of 480p, and even that mode can’t be used with the Wii’s included composite AV cables. (Most if not all of the Wii’s games will, however, be optimized for wide-screen TVs.) The Wii also lacks advanced surround sound, instead sticking with the GameCube’s Dolby Pro-Logic II matrixed surround (based on a stereo signal, not native 5.1). In other words, if you’re looking for state-of-the-art eye candy, you’re going to want to opt for the PS3 or the Xbox 360–either of which will take a significantly larger chunk of your bank account.” (CNET)

2.)    Nintendo must develop new consoles and games to compete with the ever growing smart phone game market. 

Gaming has moved rapidly in the direction of shorter, simpler games played via social networks and mobile devices. “Mobile gaming has more users and is growing more rapidly than any other gaming platform in the US.  In 2010, Smartphone gamers represented just under half (45.8%) of all mobile gamers; by the end of 2012, they will represent three-quarters of all mobile gamers. Nearly half (49%) of mobile owners will use mobile games by 2013. By 2016, eMarketer estimates that over half (53%) of the general population will be mobile gamers. The growth of social gaming is slowing, down to 10% growth in 2012 (a significant drop from growth rates of 27% in 2010 and 31% in 2011), but is still stronger than the rate of increase for social network users.” (McNaughton)

Research Objectives:

1.)    What type of game consoles do consumers want?

The Wii has great games for couples, families, and hardcore gamers alike, with a slight emphasis on couples and families and a smaller number of hardcore titles. The 360 is definitely more of a system for adults. There are definitely family games to be found on the system, but nowhere near the amount that can be found on the Wii.  Both systems have great system-exclusive games. The Xbox 360 has both the Halo and Gears of War series and the Wii is home to classic franchises like Mario, Zelda, and Metroid.  Microsoft’s Xbox Live is the best online service for any modern console. With integrated voice communications, friend lists, Netflix compatibility, the Xbox Live Marketplace, and a host of other features, it’s the clear winner here. The downside to Live, of course, is the fact that you have to pay for it. At roughly 50 bucks a year, that’s one less game you’ll be buying, but I’ve always found the service well worth the price.  Getting online with the Wii is a complicated process requiring friend codes and lacking in voice chat for most games. Nintendo’s family focus requires it to take drastic steps in order to ensure that no gamers are inadvertently exposed to objectionable material, an approach that many gamers find limits their online enjoyment. The upsides to the Wii’s limited online features are that they’re absolutely free.  For beginners and those who find the overly-complicated button layouts of modern controllers confusing, the intuitive nature of the Wii’s controls can be a godsend. For hardcore gamers who prefer the flexibility modern controller’s offer, they can be incredibly frustrating.  The Nintendo Wii doesn’t play movies at all. No DVDs, no HD-DVDs, no Blu Rays. The Wii plays games, period. (Sell and Hartman)

2.)    Do consumers prefer to games using a standard game console, handheld device, or games able to be played on a smartphone?

Mobile phone sales have skyrocketed in the past decade due to significant advances in technology and new innovation trends in the market.  Web devices have begun to reshape every aspect of our society.  There are more than 6 billion mobile subscribers worldwide which accounts for 87% of the world’s population.  Over 300,000 apps have been developed in the past 3 years.  Apps have been downloaded 10.9 billion times. (Daniells) 64% of apps used are for mobile gaming.  According to a new infographic by businessdegree.net, more than $12 billion was generated by mobile gaming in 2011 with 34% of the top grossing apps in the app store. (Taylor)

From 2009 to 2011, sales figures for digital games grew from 20 to 31%. This included mobile apps and social network gaming. Based on figures from the infographic, in 38% of U.S. households games are played on Smartphones, and in 26% on wireless devices. While these numbers might not seem too impressive at first, Smartphone gaming is expected to grow over the next few years. So far this year, 2012, over 100 million mobile phone users played games on their phones. According to the infographic, there’s a trend towards that amount almost doubling by 2016.No wonder, as playing games on your phone or online is usually less expensive than buying a traditional videogame. Board, trivia and card games are played most often on mobile phones, leading by 47% compared to other game types. (Yull)

3.)    What new technology can be added to video game consoles?

Many people always want the newest and best technology when it comes to purchasing any electronics. In order to be competitive in the marketplace, Nintendo needs to be sure to keep up with the recent technological developments, as well as listening to what the consumer is asking for in new devices. The next generation Wii, the Wii U, is going to have a lot more third party support. The graphics in the device, DirectX11, will be on par of those in the Xbox and PlayStation. The Wii U controller will also feature a large 6.2 inch touch screen, as well as a Wii U pro controller that will appeal to hardcore gamers. This controller as well as the Wii U game system will be compatible with the older generation Wii games as well as the Wii Fit balance board and remotes. The controller will also function as a TV remote control, so you can easily flip back and forth between game playing, and the Wiiverse social media service all while being able to watch a television show at the same time. (Ferretti)

4.)    Does HD gaming matter when purchasing a video game console?

The newest faze when it comes to gameplay is the ability to have it be in HD. Currently, the first generation Nintendo Wii lacks this. The device does not have HD graphics, which makes it seem obsolete technology wise compared to its competition which now offer HD graphics. Many professional and hard-core gamers want the best when it comes to technology, and the lack of HD graphics makes them likely to stay away from purchasing the Wii.(Reisinger)

Also, another issue comes when it comes to attracting the best games to be playable on your console. Most game developers first reach out to Sony and Microsoft to launch their games on, as they know that the system can support their technology and graphics requirement. These often shy away from Nintendo due to lack of technology and fear that the game won’t be able to be played to its full potential on the Wii device. (Fritz)

5.)    How much does the level of online play affect game console sales?

When it comes to online game play, the award for the best can be awarded to Microsoft’s Xbox live. Xbox live features a number of key features, including Netflix Compatibility, Xbox Live Market Place, integrated voice communications, friend lists, as well as a number of other key features. These features do come with a cost, live costs around $50 per year to subscribe to, a downside especially with a struggling economy and many on tight budgets. Nintendo Corporation struggles in this arena. While it does offer the ability to go online, it is often complicated for most users to do so. It requires friend codes that you must obtain from each individual you wish to connect with, and these must be obtained outside of the Wii network. Once connected to each other, you can now send messages via the “Message Channel” on the device. The Wii also lacks the voice chat that is extremely popular with Xbox Live. The one positive of Nintendo’s online game program is that is offers quite a bit of protection for younger gamers, something that parents will enjoy, and a key feature of Nintendo’s focus on the family in general. (Sell and Hartman)

Outside Database

Database website www.researchandmarkets.com has a plethora of research resources, across a variety of categories, not limited to business and finance. This database includes a full business analysis for Nintendo, including a detailed SWOT profile, information on crucial employees, and a number of financial reports. From May 2011 this analysis is relatively recent, with some of the future plans happening now. Nintendo is a large company, spanning many nations and continents, so a report compiling so much detailed information together in a comprehensive manner would be very helpful. The data has been gathered by GlobalData, a worldwide consulting/research firm. (GlobalData)

Collection Method

Our secondary data yielded some initial problems to the iceberg, yet it didn’t provide everything that we needed.  We knew that we would have to include questions that addressed how long surveyors played video games, how many hours they spend playing video games, what systems they own, the amount of money they spend on playing video games, what are their main reasons for playing video games, and most importantly, what features do they feel are most important when considering what type of device to play video game on.  In order to answer these questions, we created a survey, which contained 22 questions, and conducted our research using convenience samples.  We decided that we would sample at least 50 people, and, in the end, N=60.  We wanted to maximize the number of game players who took the survey so 30 were completed at I.U.S.B, 10 were completed at Old Navy, Wal-Mart’s electronics section, and GameStop on Black Friday, 2012.

Hypothesis Testing

Q1: Do consumers play significantly more games on Smart Phones or Game Consoles?

Intuition: I feel that consumers play significantly more games on smart phones today than they do on console games. This is due to personal experience that most people I know never discuss any console games that they play, but they always discuss games that can be played on smart phones/tablets. Also, you see a lot more Angry Bird items out on the market, which is a smart phone game, compared to Mario Kart memorabilia, which is an extremely popular console game. Also, the majority of the population owns a smart phone or tablet, while less own a game console.

Hypothesis:

Ho: The mean overall time a spent playing a game on smart phones is equal to time spent on console games.

Ha: The mean overall time spent playing a game on smart phones is significantly greater than the time spent playing a game on consoles.

 

 

 

 

 

One-Sample   Statistics

 

N

Mean

Std.   Deviation

Std.   Error Mean

(Q7b) How many hours do you spend playing video games each week   on: Smartphone

54

4.37

3.223

.439

(Q7c) How many hours do you spend playing video games each week   on: Game Console

54

4.89

3.462

.471

 

The results of our survey show that there were 54 respondents who answered each question. There was a mean overall time spent playing games on a smart phone is 4.37, while the mean time spent playing video games on a console was 4.89.

Conclusion:

It appears that my intuition was not correct, as it we look at the mean value for each question; it shows that people spend a greater amount of time playing video games on a console device rather than a smart phone device. This means that we can reject the null hypothesis,

Follow-Up: With the rise of mobile gaming, we would like to know if people find console games and mobile games similar when it comes to playing video games.

Q2: Do people find console gaming similar to mobile device gaming?

Intuition: I believe that the majority of people will not find mobile device gaming similar to console gaming. This is because the two are very different from the research we have done. Most smart phone games are very simple compared to their console gaming counterparts.

Hypothesis:

Ho: Console gaming is similar to mobile phone gaming

Ha: Mobile phone gaming is significantly different from console gaming.

 

One-Sample   Statistics

 

N

Mean

Std.   Deviation

Std.   Error Mean

(Q11) Is mobile gaming service similar to console gaming? (yes   or no)

54

.06

.231

.031

 

Results:

A total of 54 respondents gave a mean response of .06 on if console gaming was similar to smart phone gaming. This means that the majority of people find the two different, as the number is extremely close to 0, which was our code for them not being similar.

Q3:Do hard core and casual gamers prefer the Wii more than mobile and rare gamers.

Intuition:  Nintendo continues to pursue its basic strategy of “Gaming Population Expansion” by offering compelling products that anyone can enjoy, regardless of age, gender or gaming experience. (Nintendo Consolidated Financials)  Just three years ago, Nintendo Co.’s video-game device was nearly impossible to find, as hard-core gamers clamored for it along with novices, including families with young children and grandparents drawn to its easy-to-use wand. (Fritz)  With this, we believe that hard core gamers and casual gamers will prefer to play the Wii more than mobile gamers and rare gamers.

Ho:  On average, hard core and casual gamers are equal in their preference in playing the Wii when compared to mobile and rare gamers.

Ha: On average, hard core and rare gamers will prefer to play the Wii significantly more than mobile and rare gamers will prefer to play the Wii.

 

Levene’s   Test for Equality of Variances

t-test   for Equality of Means

F

Sig.

t

df

Sig.   (2-tailed)

Mean   Difference

Std.   Error Difference

95%   Confidence Interval of the Difference

Lower

Upper

(Q5c) How important is your preference for playing video games   on: Wii Equal variances assumed

.816

.370

2.769

52

.008

1.043

.377

.287

1.798

Equal variances not assumed    

2.587

24.542

.016

1.043

.403

.212

1.874

 

 

 

 

 

 

Group   Statistics

  (Q10) Do you consider yourself a Hard-core gamer, a casual   gamer, a mobile gamer (cell phone) or rare gamer (less than 2 days a week)?   (please select one)

N

Mean

Std.   Deviation

Std.   Error Mean

(Q5c) How important is your preference for playing video games   on: Wii >= 3

16

3.44

1.413

.353

< 3

38

2.39

1.198

.194

 

There are 38 people who consider themselves hard core and/or casual gamers with a mean of 2.39 in their preference for playing video games on the Wii and there are 16 people who consider themselves mobile and/or rare gamers with a mean of 3.44 in their preference for playing video games on the Wii

Since the Levene’s test for the equality of the variance in the preference for playing games on the Wii is not significant (p= .370 > .05), we can assume that the two variances are equal.  Hence, we report the upper row of results for the independent sample t-test.

The independent sample t-test (testing if the mean amount of hard core/casual gamers and mobile/rare gamers are equal in their preference for playing video games on the Wii) is significant (p= .008 < .05).  However we must reject both hypotheses.

Conclusion: This goes against our intuition because our results were opposite of what we predicted.  Mobile and rare gamers seem to prefer the Wii more with a mean of 3.44 which is almost right between important and very important in selecting the Wii.  Oppositely, Hard core and casual gamers seem to prefer the Wii less with a mean of 2.39 which is more on the end of the Wii being slightly important in their choice for playing video games.  Perhaps hard-core and casual gamers ran to the Wii initially, but over time they seemed to prefer playing games on the other platforms.

Follow-Up:   We would like to see if there is a significant relationship between an individual’s interest in HD gaming capabilities, DVD/CD/Blu-Ray playback, online capabilities or ease of online connectivity, and adequate storage space for consoles and an individual’s preference in playing games on the Wii.  If these are positive predictors, we may be able to conclude that Nintendo is losing business to the two segments that it’s trying to reach because their system lacks the extra features that Microsoft and Sony offer.

Q4: Does the importance of HD gaming capabilities, DVD/CD/Blu-Ray playback, online capabilities or ease of online connectivity, cost of purchasing the game unit, and ease of playing with kids or grandparents affect how consumers select the device to play video games on.

Intuition:  “Nintendo has sold a huge number of consoles, but that doesn’t mean much if the software isn’t there to support it, and for Nintendo, the software just hasn’t been there—not like on the PS3 and 360.  For the casual gamer, inevitably that fascination with the hardware had to end.  Casual gamers bought the Wii for the novelty of the system, while core gamers buy games they are excited about–which continues to provide a steady stream of income for the manufacturers as those gamers pick up new titles. And that’s not even counting lucrative micro-transactions and paid downloads.  Nintendo also made a mistake in not cultivating its online community. When you turn on an Xbox 360 or PS3 you see links for trailers and news about upcoming releases.  Nintendo dropped the ball here, and the casual fans just lost interest because they had nothing to keep them engrossed.” (Digital Trends Staff)  Due to the fact that the Nintendo Wii lacks where these systems excel and as a result those systems are outselling Nintendo currently, we predict that there will be a positive relationship between the importance of HD gaming capabilities, DVD/CD/Blu-Ray playback, online capabilities or ease of online connectivity, and adequate storage space for consoles when it comes to playing video games on the Nintendo Wii.

Ho: There is no significant relationship between these features and an individual’s preference in playing games on the Nintendo Wii.

Ha:  An individual’s interest in HD gaming capabilities, DVD/CD/Blu-Ray playback, online capabilities or ease of online connectivity, and adequate storage space for consoles will significantly affect the preference in playing games on the Wii.

Results:

ANOVAa

Model

Sum of   Squares

df

Mean   Square

F

Sig.

1 Regression

8.209

4

2.052

1.155

.342b

Residual

87.051

49

1.777

   
Total

95.259

53

     
a. Dependent Variable: (Q5c) How important is your preference   for playing video games on: Wii
b. Predictors: (Constant), (Q9e) NOT considering a specific   game,  How important in the selection   of a platform to play games on is: Adequate storage space for consoles, (Q9c)   NOT considering a specific game,  How   important in the selection of a platform to play games on is: Online   capabilities or ease of online connectivity, (Q9d) NOT considering a specific   game,  How important in the selection   of a platform to play games on is: DVD/CD/Blu-Ray playback capabilities,   (Q9a) NOT considering a specific game,    How important in the selection of a platform to play games on is: HD   gaming capability

 

 

Coefficientsa

Model

Unstandardized   Coefficients

Standardized   Coefficients

t

Sig.

B

Std.   Error

Beta

1 (Constant)

3.965

.624

 

6.351

.000

(Q9a) NOT considering a specific game,  How important in the selection of a   platform to play games on is: HD gaming capability

-.021

.142

-.027

-.147

.884

(Q9d) NOT considering a specific game,  How important in the selection of a   platform to play games on is: DVD/CD/Blu-Ray playback capabilities

-.028

.144

-.034

-.197

.845

(Q9c) NOT considering a specific game,  How important in the selection of a   platform to play games on is: Online capabilities or ease of online   connectivity

-.174

.130

-.194

-1.335

.188

(Q9e) NOT considering a specific game,  How important in the selection of a   platform to play games on is: Adequate storage space for consoles

-.127

.169

-.145

-.752

.456

a. Dependent Variable: (Q5c) How important is your preference   for playing video games on: Wii

 

 

 

 

Model   Summary

Model

R

R Square

Adjusted   R Square

Std.   Error of the Estimate

1

.294a

.086

.012

1.333

a. Predictors: (Constant), (Q9e) NOT considering a specific   game,  How important in the selection   of a platform to play games on is: Adequate storage space for consoles, (Q9c)   NOT considering a specific game,  How important   in the selection of a platform to play games on is: Online capabilities or   ease of online connectivity, (Q9d) NOT considering a specific game,  How important in the selection of a   platform to play games on is: DVD/CD/Blu-Ray playback capabilities, (Q9a) NOT   considering a specific game,  How   important in the selection of a platform to play games on is: HD gaming   capability

Conclusion: There is no significance on the Analysis of Variance (p=0.342).  This goes against our original intuition that HD gaming capabilities, DVD/CD/Blu-Ray playback, online capabilities or ease of online connectivity, and adequate storage space for consoles will significantly affect the preference in playing games on the Wii. As a result we must reject our Ha and accept our Ho that there is no significant relationship between these features and an individual’s preference in playing games on the Nintendo Wii. These game players don’t seem to care to about all of these extra features that hard-core gamers prefer when they choose what platform to play their video games on.  As a result, for core Wii players, these features seem as extra options that they can go without.

Follow-up: This could be very important because it seems that Nintendo targeted infrequent and/or the casual gaming market.  Most people inside of this market are under 16 years of age or they are older than the age of 30.  As a result, we need to test whether older people play more games on consoles than younger people.

Q5 Do older people (OP), above 30, play more on their consoles than younger people(YP)? Do younger people play more on their Smartphone than older people? 

Intuition: According to the ESRB website the average gamer is 34 years old. (ESRB). The people above 30 may play more often on their consoles since they often have the funds to buy the consoles and games. However, the average age of mobile gamers is 25-34 years old. (Nanigans) As a result, we believe that younger people may play more often on their smartphones since more of the games are free and they have fewer funds to buy the expensive consoles and games.

H1}     Ho = OP and YP spend equal amounts of time playing consoles.

Ha = OP spend significantly more time playing on their consoles than YP.

H2}     Ho= OP and YP spend equal amounts of time playing on smartphones.

Ha= YP spend significantly more time playing on their smartphones than OP.

 

Group   Statistics

  (Q22) What is your age?

N

Mean

Std.   Deviation

Std.   Error Mean

(Q7b) How many hours do you spend playing video games each week   on: Smartphone >= 3

27

3.48

3.203

.616

< 3

27

5.26

3.046

.586

(Q7c) How many hours do you spend playing video games each week   on: Game Console >= 3

27

5.74

3.096

.596

< 3

27

4.04

3.653

.703

 

 

 

 

Independent   Samples Test

 

Levene’s   Test for Equality of Variances

t-test   for Equality of Means

F

Sig.

t

df

Sig.   (2-tailed)

Mean Difference

Std.   Error Difference

95%   Confidence Interval of the Difference

Lower

Upper

(Q7b) How many hours do you spend playing video games each week   on: Smartphone Equal variances assumed

.037

.849

-2.090

52

.042

-1.778

.851

-3.485

-.071

Equal variances not assumed    

-2.090

51.869

.042

-1.778

.851

-3.485

-.071

(Q7c) How many hours do you spend playing video games each week   on: Game Console Equal variances assumed

2.368

.130

1.849

52

.070

1.704

.922

-.145

3.553

Equal variances not assumed    

1.849

50.638

.070

1.704

.922

-.147

3.554

 

Results:

H1) there are 27 people over the age of 30 that spend a mean time of 5.74 on consoles, while 27 people under the age of 30 spend a mean of 4.04 on consoles.

Step 1) Since the Levene’s test for the equality of the variances of the time spent on consoles by OP and YP is NOT significant (p = .13 > .05), we can assume the two variances are equal. As such, we report the upper row of results for the independent samples t-test.

Step 2) The independent samples t-test testing that OP and YP spend equal amounts of time on consoles is NOT significant (p = .07 > .05), so we cannot reject the null hypothesis that the time spent is equal.

Conclusion: This goes against our intuition that people above 30 play games on their consoles more often than people under 30. This could be because the older people often have families and responsibilities to consider so they may not play as much as they like, while younger people have fewer responsibilities and can focus more on personal gratification by playing games.  Hence the mean time spent on consoles between the two groups is roughly equal, between 1 and 4 hours a week.

H2) The are 27 people over the age of 30 that play a mean of 3.203 on smartphones, and 27 people under the age of 30 play an average of 5.26 on their smartphones.

Step 1) Since the Levene’s Test for the equality of the variances of the amount of time OP and YP spend on smartphones is NOT significant (p = .849 > .05), we can assume that the two variances are equal, so we report the upper row of results.

Step 2) The independent samples t-test testing that OP and YP spend equal amounts of time on Smartphone IS significant (p = .042 < .05), so we reject the null hypothesis that the time spent is equal. This suggests the two means are significantly different.

Conclusion: We conclude the amount of hours spent playing on smartphones by YP is significantly more than the hours spent by OP. This goes with our intuition and research. Looking at the mean amount of hours spent by YP and OP playing on smartphones, we conclude the average amount of time spent is between 3.48 and 5.26, or between 1.5 hours and 3.5 hours a week.

Follow-up: Younger people and older people play roughly the same amount of time on consoles, but younger people play more on smartphones. To get the younger people to play more on their consoles, Nintendo should consider offering lower priced, downloadable games. The ease of accessibility through downloads, as well as the cheaper price may bring some of these mobile gamers of all ages to the consoles.

Q6: Do older people (OP) above 30 spend more money on the Wii than younger people (YP)?

Intuition: The Nintendo Wii is a family friendly console, with games that appeal to a variety of ages, with more family friendly games than the competitors. People above 30 often have families and children they share their console with, and so they may spend their dollars on a console everyone can play. Younger people may focus more on personal satisfaction, and tend to spend less on the family friendly system.

Ho = OP and YP spend the same amount of money on the Nintendo Wii.

Ha = OP spend significantly more on the Nintendo Wii than YP.

 

 

 

 

Group   Statistics

  (Q22) What is your age?

N

Mean

Std.   Deviation

Std.   Error Mean

(Q8c) How much money have you spent on purchasing video games   and downloadable video game content for: Wii >= 3

27

3.15

2.741

.528

< 3

27

1.81

1.442

.278

 

Independent   Samples Test

 

Levene’s   Test for Equality of Variances

t-test   for Equality of Means

F

Sig.

t

df

Sig.   (2-tailed)

Mean   Difference

Std. Error   Difference

95%   Confidence Interval of the Difference

Lower

Upper

(Q8c) How much money have you spent on purchasing video games   and downloadable video game content for: Wii Equal variances assumed

23.845

.000

2.237

52

.030

1.333

.596

.137

2.530

Equal variances not assumed    

2.237

39.366

.031

1.333

.596

.128

2.539

Results:

There are 27 people above the age of 30 who spend on the Wii a mean of 3.15, and there are 27 people under the age of 30 who spend a mean of 1.81 on the Wii.

Step 1) Since the Levene’s test for the equality of the variances of the money spent on the Wii by OP and YP is significant (p = .000 < .05), we cannot assume the two variances are equal, so we report the bottom row of results for the independent samples t-test.

Step 2) The independent samples t-test test if that mean amount spent on Wii by OP and YP is equal is significant (p = .03 < .05), so we reject the null hypothesis that the two amounts are equal. This infers that the two means are significantly different.

Conclusion: This goes with our intuition that people above 30 spend on average spend more on the Nintendo Wii than people under 30. The older people may be more concerned with getting more value for their purchase and a system for the whole family does that better than one primarily aimed toward them. Since younger people do not have to consider as many factors, they may spend more on the Xbox 360 and PlayStation 3 which have a better selection of games aimed toward their interests. Older people spend between $20 and $50, while younger people spend between $0 and $20.

Follow up: The younger people may choose to spend their dollars on the PS3 and 360 instead, more so than the older people.

Q7: Do people under 30 (YP) spend more on the PlayStation 3 and Xbox 360 than people over 30 (OP)?

Intuition: Following up on previous test, testing if younger gamers spend more on these systems that are targeted at them, than the older people who may focus on the family elements of the Wii.

H1}     Ho = OP and YP spend the same amount of money on the PlayStation 3.

Ha = YP spend significantly more money on the PlayStation 3.

H2}     Ho = OP and YP spend the same amount of money on the Xbox 360.

Ha = YP spend significantly more money on the Xbox 360.

 

 

 

 

Independent   Samples Test

 

Levene’s   Test for Equality of Variances

t-test   for Equality of Means

F

Sig.

t

df

Sig.   (2-tailed)

Mean   Difference

Std.   Error Difference

95%   Confidence Interval of the Difference

Lower

Upper

(Q8d) How much money have you spent on purchasing video games   and downloadable video game content for: X-Box 360 Equal variances assumed

.437

.511

.712

52

.479

.519

.728

-.942

1.979

Equal variances not assumed    

.712

50.786

.479

.519

.728

-.943

1.980

(Q8e) How much money have you spent on purchasing video games   and downloadable video game content for: Playstation 3 Equal variances assumed

4.336

.042

1.026

52

.310

.741

.722

-.708

2.190

Equal variances not assumed    

1.026

49.501

.310

.741

.722

-.710

2.191

 

 

 

 

 

 

Group   Statistics

  (Q22) What is your age?

N

Mean

Std.   Deviation

Std.   Error Mean

(Q8d) How much money have you spent on purchasing video games   and downloadable video game content for: X-Box 360 >= 3

27

3.78

2.873

.553

< 3

27

3.26

2.459

.473

(Q8e) How much money have you spent on purchasing video games   and downloadable video game content for: Playstation 3 >= 3

27

2.81

2.936

.565

< 3

27

2.07

2.336

.450

 

Results:

H1) There are 27 people under the age of 30 who spend a mean of 2.07 dollars on the PlayStation 3, and 27 people over 30 that spend on average 2.81 dollars on the PlayStation 3.

Step 1) Since the Levene’s test for the equality of the variances of the amount of money spent on the PS3 by OP and YP is significant (p = .042 < .05), we cannot assume the two variances are equal, and must report the bottom row of results for the independent sample t-test.

Step 2) The independent samples t-test testing if the mean amount of money spent on the PS3 by OP and YP is equal is NOT significant (p = .310 > .05). This means we cannot reject the null hypothesis that the two means are equal.

Conclusion:  This goes against our intuition that younger people spend more on the PS3 than older people. This could mean the older people surveyed do not have families and don’t need family games.

H2) There are 27 people under 30 who spend a mean of 3.26 dollars on the Xbox 360, and 27 people above 30 who spend a mean of 3.78 on the Xbox 360.

Step 1) Since the Levene’s test for the equality of the variances of the amount spent on the 360 by YP and OP is NOT significant (p = .511 > .05), we can assume the two variances are equal and report the upper row of results for the independent t-test.

Step 2) The independent samples t-test testing if the mean amount  of money spent on the 360 by OP and YP is equal is NOT significant (p = .479 > .05). This means we cannot reject the null hypothesis that the two means are equal.

Conclusion: These results go against our intuition that YP spend more on the 360 and PS3 than OP. This could be because the 360 and PS3 both have a selection of family games, although smaller than the Wii, while also having a wide variety of mature games. As a result, OP may buy the PS3 or 360 for the family. This is further supported when considering that these systems have further functionality than the Wii, and are a better value for family entertainment. It could also indicate the people surveyed as a whole are less likely to have a family and less concerned with family friendly games.

The Four P’s

 

Price

Pricing is complicated for videogame consoles. Due to amount of new technology that goes into a new console, the manufacture cost is very high. These days’ companies often price their consoles below cost to make it more consumers friendly. The losses are then recuperated by software and peripheral sales.  At launch the Wii U costs $300 for the base unit, and $350 for the deluxe version. Historically, this is a relatively high price tag for a console, especially one from Nintendo, who released the Wii for $250 in 2006. This price helped vault their system above competition. The Xbox 360 launched at $300-$400, while the PlayStation 3 launched at $500-$600. At the time these were also very expensive, and prices were lowered slightly a year later.  Before these consoles were released, the common price for a new console was $200, going back to the Atari in 1977. When adjusted for inflation, however, many of these prices skyrocket toward the $400 range, many surpassing that even. The Xbox 360’s adjusted price is $351, while the PlayStation 3 is $570. With others adjusted for current value, we see the Wii U’s price tag is much more consumer priced than others have been in the past. An advantage for recent consoles is their inclusion of other functions. While the consoles of past only played games, today’s consoles can play DVD’s and Blu-Ray, stream TV and movies, and also connect people through the internet. This high functionality supports the high prices, making them a worthwhile investment for some consumers. (Matthews)

Product

In order to be competitive in the ever changing gaming market, Nintendo needs to branch out from its comfort shell, and long standing traditions. There are a number of different improvements and changes that Nintendo can make. These include branching into the mobile gaming market, working with popular gaming companies to be included in the release of new titles.

The biggest improvement and change that Nintendo can make in order to increase its profit and popularity, as well as help gain back its market share, is to enter the mobile cell phone gaming market. The majority of the population who own smart phones, or in some cases tablets, play games on them. They appeal to the majority of the population due to the ease of play, and the low cost. To many, it is much more appealing to pick up your phone or tablet while in between commercials, study breaks, waiting for classes or appointments, or even just to relax than setting up game play on a console. The games are easy to play for a few minutes at a time, and are also very inexpensive. There are quite a few free games on the app marketplace, that support themselves with ads, but the games that cost money are generally anywhere from $3-$5, which is the area where Nintendo should attempt to enter. They should develop new games for the devices, as well as transfer current popular devices onto the smart phone market. This may require some changes to the games.

Another area of improvement in the product Nintendo can make is to work with the large game companies behind popular releases such as Madden NFL, Call of Duty, Gears of War and others, so that when the game is first released to the public, it is offered for the Wii U. This will make the Wii U more attractive to gamers, as they will have a wider selection of titles, as well as the ability to have the titles as soon as they are released, instead of having to wait around. This may make them more likely to purchase the Wii U and accessories.

 

Place

In our opinion, Nintendo should continue its current distribution and selling strategy. We should continue consoles at chain big-box retail locations (Wal-Mart, Best-Buy, Target), as well as online sales through retailers such as Amazon.com. Nintendo should also continue selling units at video game stores (Game Stop etc.). We also feel it would be in Nintendo’s best interest to expand where it sells its video game software. Gap Inc.’s chain Old Navy recently began selling video games for the Holiday season, including Nintendo titles, and we believe Nintendo should expand this concept to other popular chains. Another area for Nintendo to expand on is selling its video games for download online.

Promotion

In 1985, Nintendo released Duck Hunt as a second game option of the first Mario Brothers Game in the United States.  27 years later, Nintendo released the Wii U.  To commemorate the 27th anniversary, we are running the Duck Hunt Scavenger Hunt Promotional Giveaway.  Every day in the first three weeks of December, Nintendo will be giving away a limited release (105 total games) of Duck hunt for the Wii U to the first 5 winners of the virtual scavenger hunt.  The scavenger hunt will started out at our website, Nintendoduckhuntgame.com, every day at 8am.  People can play via the computer, laptop, or on their Smartphone.  The game will consist of 5 random Nintendo questions and 5 Nintendo video game questions.  Everyone who answers all 10 questions correctly will be given a password to enter at WiiU.com.  Once at WiiU.com, players will have to play an online version of Mario where they have one life and only one chance to complete a level from one of the Mario Games (39 different Mario games have been released since 1985).  Once an individual has completed the level, they will be redirected to a page that asks for their basic demographic.  After that, they will be given a special number that they have to take to the GameStop that closet to their home.  Once they are there, they will take a picture with our cardboard Mario, posing with their game and a special limited release Duck Hunt Gun for the game.

The level will change daily but contestants can try as many times as they want to enter the contest until all 5 games have been given away for that day.  This promotion will act as our way of creating excitement, while at the same time, offering awareness and getting more internet and mobile phone user aware of our brand, products offered, and, most importantly, players get to try out simple versions of the games that we offer over the internet for three weeks.

Final Concluding Ideas

Although Microsoft and Sony also make both hardware and software, Nintendo views its software and hardware as an integrated offering, so it doesn’t make versions of its games for other mobile devices such as Smartphone’s or tablets. Aside from the improvements to hardware that the Wii U will offer, Nintendo will also look to improve its social network capabilities and features and expand its digital business with add-on content and increased digital distribution of its software.  (Hovers) In conclusion of our report, we advise that Nintendo should follow the above recommendations included in the price, promotion, place and product area. While in some cases our data may not match the recommendations, it must be understood that a small sample of 60 from a small geographical area of South Bend, does not does not give a very clear picture of the majority of the population. Our recommendations are based on not only the data collected, but the research we conducted. A lot of the research that is collected is done by seasoned professionals, covering a large sample. The majority of the research points to an ever growing smart phone game market, with console sales staying steady, but losing ground in comparison.

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Taylor, H. (4-18-2012). The rise of the billion dollar mobile gaming market: infographics.  Retrieved from http://econsultancy.com/us/blog/9638-the-rise-of-the-billion-dollar-mobile-gaming-market-infographic

Theesa. (2012). Industry Facts. Retrieved from http://www.theesa.com/facts/index.asp

Yull, S. (7-30-2012). The Videogames Industry is Changing: Mobile Gaming Expected to Rise. Retrieved from http://www.trenditionist.com/2012/07/30/the-videogames-industry-is-changing-mobile-gaming-expected-to-rise/

 

 

 

 

 

 

 

 


 

Appendix

Charts From: Gamasutra

 

 

 

 

 

 

 

Video Game Survey

1. Have you ever played video games? (yes or no)  _______

2. Do you currently play video games, not including going to an arcade to play games? _______

3. If you answered no to either question, why don’t you play video games? If you answered yes to both questions skip this question.

  1. cost
  2. not interested
  3. not enough time
  4. lack of skill
  5. not allowed (parents, teachers, etc.)
  6. other_____________________________________________________

If your answer to # 1 or # 2 was “No”, answer please skip to question # 17

4. How long have you been playing video games?

  1. 6 months to 1 year
  2. 1 year to 2 years
  3. 2-5 years
  4. 5-10 years
  5. 10 or more years

5. Please scale the following in order from 1 to 5 (1 being the least important and 5 being the most important), in your preference for playing video games. (over the internet via computer browser, mobile gaming (such as off of a smart-phone), on a Nintendo Wii, X-Box 360, or PlayStation 3).

 

1

2

3

4

5

Internet (PC Based)

Mobile

Wii

360

PS3

6.  Please select the following devices that you currently own. (select all that apply)

  1. Nintendo Wii
  2. Xbox Kinect
  3. PlayStation Move
  4. None

7. On average, about how many hours do you spend playing video games each week on each of these devices?

Facebook

Smartphone

Game Console

PC Game

       

8.  Over the last year, roughly how much money have you spent on purchasing video games and downloadable video game content for each of the following devices?

 

Zero

1-$20

$21-$50

$51-$90

$91-$120

$121- $150

$151-$200

Over $200

Internet (PC Based)

Mobile

Wii

360

PS3

 

9. Do NOT consider a specific game.  Use the scale below to indicate how important each of the following is in the selection of a platform to play games on (scale 1 -5 for each); 1 being the least important and 5 being the most important).

 

1

2

3

4

5

  1.   HD gaming capability
         
  1.   The number of games available
         
  1.   Online capabilities or ease of online connectivity
         
  1.   DVD/CD/Blu-Ray playback capabilities
         
  1.   Adequate storage space for consoles
         
  1.   External Hard drive capabilities for consoles
         
  1.   Cost of playing/purchasing game titles
         
  1.   Motion free capability
         
  1.   Ease of playing with kids or grandparents
         
  1.   Appearance of Console
         
  1.   Playing game on mobile phone
         
  1.   cost of purchasing a game unit
         

 

10. Do you consider yourself a Hard-core gamer, a casual gamer, a mobile gamer (cell phone) or rare gamer (less than 2 days a week)? (please select one)     _____________________________

11. Is mobile gaming service similar to console gaming? (yes or no)  ______________________

12. Which is more important for video game playing, a small screen or big screen?  __________

13. What is your dream video game screen size?

  1. 4inch-9inch
  2. 19inch-27inch
  3. 32inch-40inch
  4. 42inch-55inch
  5. 56 inch and over

14. Where do you enjoy playing video games?

  1. While waiting to meet someone
  2. In your bedroom
  3. On the couch
  4. Before/after class
  5. On breaks
  6. Home
  7. Evening and Weekends

15. On a 1 -5 scale, what is/are your MAIN reason(s) for playing video games? (1 being the least important and 5 being the most important).

 

1

2

3

4

5

Boredom          
To waste time          
To let off some “steam”          
To follow a story line          
To socialize with other people          
To immerse myself into another world          
To challenge my mind          
To compete with other people or computers          
For pure enjoyment          
For achievements          
To gain power          

 

16. What are your Top 3 (in order) genres, or video game categories, that you enjoy to play? (Please choose from the list on the bottom of this questionnaire).

#1.________________________________________________________________

#2.________________________________________________________________

#3.________________________________________________________________

17. Using a scale of 1=very inactive, 2=somewhat inactive, 3=somewhat active and 4=very active, how physically active do you consider yourself?     _______________________

18. Using a scale of 1=very inactive, 2=somewhat inactive, 3=somewhat active and 4=very active, how socially active do you consider yourself?     __________________________

19. What is your ethnic background?

 

A.        African American

B.        Caucasian

C.        Hispanic

D.        Asian

E.         Other

 

20.  Gender:   ____ Male       ____ Female

21.  Classification:

 

A.        High School Grad

B.        Undergraduate

C.        Bachelor’s Degree

D.        Graduate Student

E.         Master’s Degree/PH.D

 

22.  Age:

 

A.        18-20

B.        21-24

C.        25-29

D.        30-35

E.         36-40

F.         41 and older

 

Video Game Genres (Question 15)


Action

Fighting

First-person shooter

Role-playing

Massively Multiplayer Online Games

Simulators

Racing

Sports

Military

Space/ Flying

Strategy

Strategy type War games

Real-time strategy

Real-time tactical God games

Economic simulation games

City-building games

Adventure

Arcade

Educational

Maze/ Puzzle

Pinball

Platform

Stealth

Survival horror

Vehicular combat

 

 

 
1 Comment

Posted by on January 15, 2013 in Marketing Research

 

One response to “Nintendo and Their Financial Woes (Marketing Researc

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