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
The Fairchild (1975)
The Atari Wars (1975-1978)
Atari VCS 2600 is the victor (1979)
Atari captures 80% of the market
AgendaThe Early Fragmented Market
High-margins on console sales is no
Japanese companies enter the market:
A new business model is introduced.
Nintendo grabs major market share:
NES consoles sold: 62 million
Sega consoles sold: 10 million
Large success attributed to the popularity
of the Super Mario Bros game.
Sega creates the Megadrive console to
steal Nintendo market share.
(Japan 1988 and NA 1989).
The Megadrive is superior in all areas:
Nintendo responds late in the game with
the Super Famicom/Super Nintendo
[SNES] (Japan 1990, NA 1991, EU 1992).
By 1993 Nintendo recovers ground:
Reason why Sega was unsuccessful:
Product life cycle and the economy
New competitors release their own consoles
with innovative business strategies:
Where is Nintendo?
By June of 1996 Nintendo unveiled its
contending system: Nintendo 64 [N64]
Nintendo’s late start resulted in
considerable market share loss
Nintendo decided to maintain its cartridge
format for playing games on its N64 for
The following reasons:
Nintendo’s concerns over cartridge and
console technology unfortunately hurt
Nintendo in the long run:
PS1 games cost: 6000 Yen
Reasons for rankings:
Nintendo will have to compete against:
Sony has experience in the console
Industry and will remain a major player.
Microsoft is committed to investing in the
So where does Nintendo fit?
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.