Nintendo the nintendo 64
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Nintendo: the Nintendo 64. Presenters: Ayami Nakanishi Asuka Oya Laurent Pawlowski Dustin Ciarla. Agenda. Today’s Agenda. Nintendo Recap Video Game History Embryonic 1 st Generation 2 nd Generation 3 rd Generation Nintendo’s Downfall Current Situation 4 th Generation

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Nintendo the nintendo 64

Nintendo: the Nintendo 64

Presenters:

Ayami Nakanishi

Asuka Oya

Laurent Pawlowski

Dustin Ciarla


Today s agenda

Agenda

Today’s Agenda

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Familiarize you with the Nintendo company.

  • Go through the evolution of video game technology.

  • Nintendo’s fatal strategic decision.

  • The current and forecasted repercussions.


The nintendo story

Agenda

The Nintendo Story

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Nintendo was founded in 1889 in the business of manufacturing playing cards.

  • Nintendo gains success in plastic card games (1950’s).


The early fragmented market

All the technology was created in the USA

The Fairchild (1975)

The Atari Wars (1975-1978)

Atari VCS 2600 is the victor (1979)

Atari captures 80% of the market

Agenda

The Early Fragmented Market

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future


Problems for atari

Agenda

Problems for Atari

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • ROI for its venture partner Warner is not high enough.

  • PC price decrease of 1983 shakes the entire market.

    High-margins on console sales is no

    longer feasible

  • Atari had been approached by Nintendo to co-operate in the release of a new console called the Famicom but refused due to monetary constraints.


Go west

Agenda

Go West

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Japanese companies enter the market:

  • Nintendo introduces the Nintendo Entertainment System [NES] (1983)

  • Sega releases the Sega Master System after speeding up its R&D 6 months later (1983)

    A new business model is introduced.

  • Consoles sold at cost.

  • Profit made on video game royalties.


Nintendo a success

Agenda

Nintendo a Success

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo grabs major market share:

  • Japan (92%)

  • North America (95%)

  • Europe (52%)

    NES consoles sold: 62 million

    Sega consoles sold: 10 million

    Large success attributed to the popularity

    of the Super Mario Bros game.


Level 2

Agenda

Level 2

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Sega creates the Megadrive console to

steal Nintendo market share.

(Japan 1988 and NA 1989).

The Megadrive is superior in all areas:

  • Better graphics

  • Longer/complex games

  • More buttons


Nintendo fights back eventually

Agenda

Nintendo Fights Back…Eventually

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo responds late in the game with

the Super Famicom/Super Nintendo

[SNES] (Japan 1990, NA 1991, EU 1992).

By 1993 Nintendo recovers ground:

  • SNES consoles sold: 49 million

  • Megadrive consoles sold: 23 million

    Reason why Sega was unsuccessful:

    Product life cycle and the economy


New challengers

Agenda

New Challengers

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

New competitors release their own consoles

with innovative business strategies:

  • 3DO (early 1993)

  • Amiga CD 32 (early 1993)

  • Atari Jaguar (late 1993)

  • Sega Saturn (late 1994)

  • Sony Playstation [PS1] (late 1994)

    Where is Nintendo?


Nintendo late in the game

Agenda

Nintendo…Late in the Game

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

By June of 1996 Nintendo unveiled its

contending system: Nintendo 64 [N64]

Nintendo’s late start resulted in

considerable market share loss

  • Sony Playstation: 100 million

  • Nintendo 64: 34 million

  • Sega Saturn: 10 million


Cartridge concerns

Agenda

Cartridge Concerns

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo decided to maintain its cartridge

format for playing games on its N64 for

The following reasons:

  • Pirating protection

  • Resilience and Quick Loading

  • Enhancement Options

  • Onboard Saving feature

  • Compatible with Internet Distribution Strategy


Unforeseen repercussions

Agenda

Unforeseen Repercussions

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo’s concerns over cartridge and

console technology unfortunately hurt

Nintendo in the long run:

  • PS1 games were pirated profusely, however this helped bolster its console sales at eh expense of competitors.

  • Nintendo’s cartridges could only hold 64 mbs compared to 700 mbs for CDs


Unforeseen repercussions cont d

Agenda

Unforeseen Repercussions (cont’d)

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Nintendo’s development of the cartridge/console was too costly and led to an exodus of small developers.

  • The Internet Distribution Project was dropped.

  • Developers shifted their focus to other platforms due to the limitations of the N64 cartridge.


What took so long

Agenda

What Took So Long!

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • N64 console required advanced system features due to its late entry into the market.

  • Nintendo broke the barriers in areas of graphics processing, multiplay options, and peripheral design.


Worth the wait

Agenda

Worth the Wait

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Nintendo continuously delayed the release of its console for more than 2 years for certain regions of the world.

  • Nintendo’s slogan became “Is it worth the wait? Only if you want the best!”

  • Begging one’s customers to wait has never been one of the successful business strategies of the 20th century.


Self sabotage

Agenda

Self-Sabotage

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Nintendo’s target market were children aged 4-12.

  • Previous Nintendo generation were ignored, left to the competition.

  • Childish animation: “not cool”.

  • Few game titles of interest to adult population and even fewer for teenagers.


Nintendo playstation

Agenda

Nintendo Playstation???

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Nintendo had originally contacted Sony to work on a CD expansion for its SNES

  • Nintendo breached their contract with Sony when they approached Phillips to work on a similar project.

  • Through Nintendo’s unprofessional conduct a formidable competitor was formed.


Late and at twice the cost

Agenda

Late and at Twice the Cost

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • N64 games costs were high due to:

    • Nintendo’s royalty system, extensive R&D and developer difficulty in fitting games onto its cartridges.

  • N64 games cost: 10 000 Yen

    PS1 games cost: 6000 Yen

  • Console cost was high despite Nintendo’s “at cost” sales strategy.

    • High console R&D


Sony s ironfist

Agenda

Sony’s Ironfist

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Sega released its Dreamcast in Nov. of 1998.

  • Sony released its Playstation 2 in Mar. of 2000.

  • Sega admits final defeat in Jan. of 2001.

  • Nintendo Gamecube enters market in Sept. of 2001.

  • Microsoft Xbox enters in Nov. 2001


And the winner is

Agenda

And the Winner is…

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

  • Sony PS2 sales: 75 million

  • Microsoft Xbox sales: 20 million

  • Nintendo Gamecube sales: 19 million

  • Sega Dreamcast sales: 9 million

    Reasons for rankings:

    • Sony and Microsoft are conglomerates with deep pockets, access to diverse networks, etc.

    • Nintendo limited its target audience.

    • Sega has never obeyed the console product life cycle.


Nintendo s future

Agenda

Nintendo’s Future

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo will have to compete against:

  • Sony’s Playstation 3

  • Microsoft’s Xbox 2

    Sony has experience in the console

    Industry and will remain a major player.

    Microsoft is committed to investing in the

    Xbox project.

    So where does Nintendo fit?


Nintendo s future1

Agenda

Nintendo’s Future

  • Nintendo Recap

  • Video Game History

    • Embryonic

    • 1st Generation

    • 2nd Generation

    • 3rd Generation

  • Nintendo’s Downfall

  • Current Situation

    • 4th Generation

  • Nintendo’s Future

Nintendo is too late to leverage their

brand loyalty amongst older gamers.

Nintendo’s console technology will always

be one step behind competition.

The child market segment is small and

less lucrative, however the opportunity for

profit does exist.

Nintendo will entrench itself into youth

gaming via the handheld industry.


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