Nintendo case study

Enzo Garcia
Rémi Terrier
Florimond Chahbazian
Paol Bourlès
Titouan Gombert
 1 - Video Games competitive landscape
Suppliers
Suppliers
hardware component : storage, technology chip, storage, battery
negotiating power : suppliers that have exclusive technologies and limited competition
may have greater bargaining power
quality and reliability : performance and reliability of consoles
innovation partnership : to make product with console producer to have competitive
advantage

Entry Substitute
high barrier to entry : significant Industry Rivalry
investment, patent, manufacturing
facilities intense competition pc gaming
Established brands : Sony, Nintendo, innovation and competition : consoles with unique features, exclusive games, and mobile gaming
Microsoft, Google... immersive gaming experiences cloud gaming : emerging market
Technological expertise : hardware, pricing pressure : periodic price cut to stimulate demand and strong price competition retro gaming : nostalgia driven
software, gaming ecosystem strategic alliance : partnership, acquisition of studios...
Regulation hurdles : copy rights,
certification and industry regulation

Buyers Power
diverse consumer preference
brand loyalty : a lot of established brands in the market already implanted
consumer behavior : digital content, multiplayer gaming influence purchasing decision
Purchasing power may influence their decision
Suppliers
 2 - Nintendo positioning in the market
Hardware Innovation Exclusive Content Maintenance of a
and Iconic Franchises Coherent Gaming Ecosystem
Offers a hybrid gaming
experience between a home Nintendo has various iconic and provides robust online services,
console and a handheld device exclusive titles such as Mario, which enable players to play
Switch’s design allows Nintendo Zelda, Pokemon, Animal Crossing online, and add data to the cloud
to reach various customers, from regular releases maintain both the continued commitment to
casual players to “geeks”, by consumers interest and software support and system
offering versatility and portability hardware sales updates reinforced the long-term
value

Accessibility and Diversification of

User-Friendliness Product Line
Positioned as an accessible brand Animal Crossing Nintendo offers multiple versions
for everyone, games are easy to Super Smash Bros of the Switch : Lite (cheaper) and
play Zelda BW OLED (better visual exp)
Switch’s versatility (home & on- enable the company to better
the-go) reinforce its user-friendly cater the consumer needs while
aspect expanding it and to drive sales
 3 - Path to sucess in Brazil
Exclusivity
Devices Exclusivity Local Factors
In order to develop a consistent fan-base, Nintendo National gaming stores struggle to attract
According to Statista in December 2023, Smartphones
has to focus on making exclusive content. customers in Brazil because of their affordability
(66%), Laptops (44%) and Consoles (33%) were the
The company has a stranglehold on Zelda, Super- and accessibility.
most used devices for gaming in Brazil.
Smash Bros, Mario and Pokemon saga only In order to be competitive, Nintendo could try to
As a founding father of affordable gaming consoles
because the firm is also the game developer. build stores in Brazil because more than one game
such as home (Wii), handheld (GameBoy, DS) and
On the other hand, Sony and Microsoft have the in two is currently purchased on Amazon.
hybrid devices (Switch), Nintendo should rethink its
advantage of possessing the exclusivity of iconic Furthermore, Nintendo could adapt its franchises to
strategy to adapt to the Brazilian market.
games, such as Halo on Xbox devices or God of War the Brazilian culture, in order to propose a more
Thus, Nintendo should try to implement mobile
on Playstation hardwares. Indeed, if players develop a targeted offer. In fact, social and cultural factors are
games in the Brazilian market, like the company
strong interest and attachement to a certain game, considerable components of consumers’ behaviors.
previously did with Mario Kart Tour or the Pokemon
they will remain loyal to it and to the console on Understanding these factors would allow Nintendo to
saga for instance.
which the game is playable. They will do whatever it launch hit-games without falling into the trap of fan
According to Statista, the purchasing power of
takes to be able to fully immerse again in the service. For instance, family is worshiped in Brazil.
households seems to be the main reason explaining
universe they grew up with. Therefore, Nintendo should develop more games
the use of smartphones. Indeed, 60% of Brazilians
Nintendo could therefore expand its scope of playable with one’s family to better meet the
only bought one game or none in-between 2016 and
playable devices by allowing other platforms Brazilian’s market needs. In fact, Nintendo’s strategy
2018. It explains why Brazilians use mobile devices to
providers to possess the licences Nintendo has. It should heads towards the creation of content that
play video games, as they are often free or
will not reduce the sales of the company, because resonates with Brazilian players, including language
affordable.
most users of Nintendo devices like to play remotely and cultural references.
Furthermore, PC gaming is the 2nd most used device
with handheld devices, such as Animal Crossing or Nintendo should try to implement a unique pricing
in Brail. As a traditional platform provider, the only
Pokemon on Switch. system regarding its games in Brazil, as high import
way to play Nintendo games on PC platforms is by
In fact, it will allow traditional Sony/Microsoft users to taxes and tariffs on electronics keep hampering
using an emulator. Hence, Nintendo lacks of
have access to those licences, fostering the already trade. The firm could possibly partners with local
competition in this sector. Consequently, the firm
existent Nintendo’s related games community. manufacturers or leveraging local production
should expand its scope by implementing
Nintedo should develop more diverse and complex incentives.
partnerships with PC platform providers such as
games to attract a new segment of gamers, other Young players are viewing gaming as an escape from
Apple, Microsoft or even Linux to attract the Brazilian
than continuously creating remakes of successful poverty, resulting in a booming ecosystem that is
market.
games. increasingly appealing to teams and sponsors alike,
Moreover, Nintendo might create a competitive
For instance, Sony was able to attract an astonishing thanks for instance to the winning of SK Gaming
advantage in Brazil by developing cross-playing
amount of players when they allowed Valve to (2016) that helped to develop the CS:GO community
video games, like Fortnite did.
display its games on Steam. in Brazil. Nintendo could benefit from this local trend.
Thanks for listening !