Ch. 6 - Consumer Decision Making

Nintendo has attempted to incorporate the idea of their gaming consoles going above and beyond just playing video games. With their most recent consoles( Wii, Wii U and 3DS), Nintendo has built them in a way that they've become more like "media boxes" than video game consoles. They have the ability to go on social networking sites like facebook via built-in apps, search the web using a web browser, and stream videos from Netflix and Youtube.

Nintendo wants their consoles to be the centerpieces of everyone's entertainment centers. The problem is, Nintendo's major competitors Sony and Microsoft have been doing the same thing for MUCH longer than Nintendo has and arguably do it way better. Back in 1999, Sega(who no longer make gaming consoles) released the Dreamcast. Dreamcast was the 1st gaming console that had the ability to connect to the internet. Playing games with people across the world, browsing the web at a time when not everyone had access to a desktop computer, and playing music CDs, Dreamcast was revolutionary. Sony took notice to the popularity of Sega's Dreamcast and set off to create the successor to the Playstation with the changing consumer tastes that the Dreamcast started. In 2000, Sony released the Playstation 2(PS2), a console that did everything the Dreamcast did, but better. The graphics for gaming were better, the online functionality was better and it had the added bonus of being the 1st console to also have a built-in DVD player. The PS2 swiftly put the revolutionary Dreamcast to sleep by the end of 2001(I was 11 at the time and was really bummed out about it. I really liked Dreamcast . . . .). Now Sony changed the battlefield, and Microsoft decided to join the fight with their 1st console, the Xbox in the same year. Xbox did pretty much the same thing that PS2 did, had better graphics and better media integration, and a built-in hardrive but made the mistake of not including a DVD player so the PS2 continued to dominate the market.

Now here's where Nintendo's blunder comes in. Nintendo was developing their latest entry during the life cycle of Dreamcast and during the development cycles of both PS2 and Xbox. Unlike Sony and Microsoft, Nintendo failed to pay notice to the impact the Dreamcast had on the market and the shift in tastes for consumers so when they released their Gamecube in the same year, it ended up doing less than both PS2 and Xbox. Nintendo had to release the console at a much lower price than the competition to make it appealing. Historically speaking, the Gamecube was a failure compared to older Nintendo systems.

Fast forward to 2005-2006 and its the dawn of Sony's PS3 and Microsoft's Xbox 360. Both of these systems aimed to drastically improve the functionality of their predecessors. This was the beginning of social media becoming popular and so there was focus on making gaming more social. Nintendo was also developing their newest console, the Wii. The Wii's gimmick was that it used motion controls so gaming became more of an exercise under the guise of playing games. Nintendo was adamant in not going in the same direction as Sony and Microsoft. At 1st, the Wii(which released before both PS3 and X360) did really well. It was the ultimate party/exercise machine . . . buuuuuuuut when the fad eventually died down, Nintendo found itself in a similar situation it had with the Gamecube.

Now its 2014. Nintendo now has it's newest console, Wii U on sale that does what Sony's new PS4 and Microsoft's new Xbox One does and at a lower price point. It seems as though they've learned their lesson when it comes to paying attention to the tastes and behaviors of consumers, but it seems as though its too little too late. Both Sony and Microsoft continue to dominate console sales despite being more expensive(I personally own a PS4 with no desire to buy a Wii U). As a consumer you'd have to be crazy to go for the inferior product. Consumers who want entertainment centerpieces as well as gaming consoles will always go with the console they feel holds a stronger presence, something they can brag about to their friends. "Yeah, I got a PS4" just sounds better than "Yeah, I got a Wii U" plain and simple.

Ch. 3 - Ethics & Social Responsibility

Nintendo approaches the concept of operating business very much like it's approach to developing video game software: making sure that everyone has a smile on their faces. From it's treatment of employees to making sure operations are running as green as possible, Nintendo is(seemingly) no-nonsense when it comes to ethics.

"At Nintendo, we emphasize safety and reliability in manufacturing products of the highest quality so that consumers of all ages can enjoy them with peace of mind."

Nintendo follows through with this statement by following the safety standards across all regions, Including the Consumer Product Safety Improvement Act of 2008 here in the U.S., the Toy Safety Directive for the European region, and the Toy Safety Standards of Japan for Nintendo's motherland. Nintendo also ensures that all of it's hardware is tested and approved for sale and all software is rated appropriately before they are sold. This keeps various games that would be too mature for younger gamers out of their reach(In this country, in order to purchase a rated "M"(for mature) game, you need to be at least 17 years old with a valid I.D.). Nintendo however rarely publishes such content on their systems so it isn't much of an issue.

"We recognize that the strengths and talents of each employee inspire Nintendo's competitive edge. We strongly believe that promoting the development of each employee to his or her fullest potential is the best way to increase the long-term collective strength of the company and is the best path to individual job satisfaction."

Through Nintendo's Human Resources Development program, Nintendo evaluates the strengths and weaknesses of each employee and encourages them to always seek greater. There is room for advancement and many incentives(including wage and salary increases) in place to encourage strong performance. Its more or less in line with Herzberg's Two-Factor theory: a satisfied employee is more likely to work more efficiently, and that in turn is better for the whole company(obviously). With that said, I find it illogical to think that other businesses(mainly Nintendo's direct competitors, Sony and Microsoft) wouldn't follow a similar set of ethics in terms of employee satisfaction. But what do I know? I'm just a humble college student.*shrugs*

Even Super Mario thinks it sounds like a bunch of generic corporate mumbo jumbo

"Nintendo Co., Ltd. established the Environment Committee in September 2011, with the company President serving as committee chair, in order to promote environmentally conscious activities. We also established our Environment Policy to guide environmental activities and implemented the PDCA (Plan - Do - Check - Act) cycle, an environmental management system based on ISO 14001, with defined targets specific to environmental activities. Some of our overseas subsidiaries have also established groups to promote the environmental activities of the company."

But I digress, continuing on with this observation of Nintendo's ethical standings, Nintendo claims to run all manufacturing processes as well as transport of manufactured goods in an eco-friendly way. Nintendo also claims all of its products are built with a similar mindset, with it's gaming consoles utilizing energy-saving technology. This to me, is very laughable. How is it possible that gaming systems are eco-friendly? I mean, sure they save a bit of energy, but honestly, 70 years from now when they burn out, they sure wont be going anywhere. Plastic and metal wiring isn't really known for being biodegradable, I'm just saying . . . . Anyways, I guess in a way to make up for this, Nintendo holds electronic recycling drives around the world in order to promote recycling. 

At Nintendo, Everything is green! . . . Veeery, very green! . . . .

So on paper, everything seems straight and narrow with Nintendo in terms of it's business ethics, but who can be so sure? While reading Nintendo's CSR from 2013, I couldn't help but feel like I'm just reading a bunch of nonsense. Sterile words I would expect a computer to mutter if computers gained sentience. Who knows, maybe I'm wrong, but my slightly cynical view on this world(as well as multi-billion dollar businesses) is making me believe there could possibly be some underhanded things happening behind the scenes. Again, what do I know? I'm Just a humble college student.

Ch. 2 - Strategic Planning for Competitive Advantage

Nintendo for the last 30-40 years has had a focus towards  videogame home entertainment systems and software. In its tenure, Nintendo has focused on creating innovative as well as family friendly video games geared towards all ages. Nintendo is very adamant about the content that is available on its console and the type of software produced under the Nintendo name brand. This has been seen in it's quality control system that places strict guidelines to the amount of violence and other graphic content; The games that are approved by Nintendo gain the "Nintendo Seal of Quality", and are allowed to be sold and marketed on and for Nintendo consoles.

Nintendo Seal of Quality

With this family-oriented approach to the videogame industry, Nintendo has differentiated itself from it's competition. Where Nintendo's major competitors Microsoft and Sony market their respective systems and software to older gamers(within the late teens up to mid 30's) with a focus on games dealing with mature subject matter, Nintendo markets to young gamers and gamers who prefer more light-hearted entertainment. Nintendo has also ventured into fitness games with their "Wii" videogame console and has branched out to include health conscious people who would otherwise never even touch a videogame console.

This is where Nintendo hopes to excel. With it's vision of creating hardware and software for the whole family to enjoy, Nintendo plans on filling in the gaps left by their super serious competition. From it's youth friendly games to sports and fitness games the whole family can enjoy, Nintendo seeks to gain the upper hand from its competitors.

Reggie Fils-Aime, President and COO of Nintendo of America at the E3 gaming convention

 In my personal opinion, I can understand why Nintendo would go the route they're on in a philosophical kind of way. Myself being a gamer almost all my life, some of the 1st games I've ever played were Nintendo games. Nice, cheerful as well as colorful games with memorable soundtracks. From Tetris to Super Mario, I was always having innocent fun. I feel that nowadays however, children don't have that kind of luxury. You turn on the television and theres commercials for Call of Duty, go outside and theres an advertisement for Grand Theft Auto V on the buses. The younger gamers now are hardly represented and I believe that Nintendo's plan to market directly to them even when the industry now is more mature gamer-centric is very admirable. In theory, a plan like this should offer an easy competitive advantage based on their choice of market. Children and teens have not only more free time to play videogames, but also have more disposable income(whether it be from allowance or part-time jobs in the case of teenagers) and by marketing the Wii as a healthy way of gaming as well as family entertainment, would bring in whole new types of consumers. From parents who want to bond with their children, to elderly people looking for a way to stay active in a fun way that is also not very intensive, Nintendo definitely has a solid plan of attack.

Nintendo Wii: Fun for the whole family

"[Nintendo] aims to create something better than what is already available in the world. We believe this can happen by creating something unprecedented. Since "Game & Watch" and the Nintendo Entertainment System(NES), all the Nintendo hardware has been developed consistently under this philosophy"

                                                                          -Satoru Iwata, President and CEO of Nintendo 

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

 Nintendo is a Japanese based company that began life in 1889 as a manufacturer of hand-made playing cards (for a game called "Hanafuda"; the cards are actually still being sold by Nintendo to this day with their modern franchises displayed on them). The name Nintendo translates roughly to "Work hard, but in the end it's in Heaven's hands" which I can say surely was the case for Nintendo, as they're still a major player within the entertainment and gaming industry. Nintendo began to take its current form post World War II, producing novelty toys and games. In 1977, Nintendo began making its current "bread and butter", Video game entertainment systems under a license from U.S. television manufacturer Magnavox. 

Nintendo's Modern Hanafuda deck

"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.

We feel an equal commitment toward our employees. We want to maintain an atmosphere in which talented individuals can work together as a team. Commitment and enthusiasm are crucial to the high quality of our products and support services. We believe in treating our employees with the same consideration and respect that we, as a company, show our customers." - Nintendo's Mission Statement

Original Nintendo video game characters, Old and New.