The impact of innovation on the video games sector, through the case of Nintendo

Plan

● Nintendo's story● The Wii case : Radical Innovation

● The Wii U : Innovation or improvement ?

The story

● 1889 : Creation by Fusajino Yamauchi as a game card company, selling only in japan.

● 1970 : Nintendo starts to sell arcades

games ● 1972 : First home video game

console : Odyssey

The first big innovation for nintendo was the passage from

game cards to video games, and so, the risk of changing the strategy

of the company.

● 1985 : Nintendo work with Shigeru Miyamot on the game Donkey Kong. That's the born of the famous Mario.

● 1983 : Nintendo launch the NES. This is the begining of their international success on video games market.

Phillips and Atari, the main competitors, renounce to this market.

1990

The GameBoy arrives in the market

This is a revolution for video games, which is now something you can play

EVERYWHERE.

● After this success comes a long period of instability.

New competitors appear and it becomes hard for Nintendo to stay competitive. ● They try to create a console with the concept of virtual reality but this is a complete fail.

● They'll have to wait the 7th generation of consoles to be leader again, thanks to the Nintendo DS and the Wii.

The case of Nintendo, proves that every innovation goes

with the notion of risk

● The VirtualBoy has been sells at only 700 000 exemplars, even if it was a huge innovation.

● It has cost a lot of money, time and energy to the company but was a fail.

● On the opposite, the apparition of the Wii or the game boy have been huge success.

The Wii CaseA radical innovation

● The Wii is a home video game console released on

2006 by Nintendo. It is their 7th generation console.

What are the first 7 console's generations ?

1 2 3 4 5 6 7

● The wii is a huge innovation on the world of video game. The most radical innovation is the technology used  : motion-sensor controller. Indeed, the control can feels the position and the moovements of players.

● The main idea of nintendo was to create a new gameplay to stay competitive on the market. They decided to be in opposition with their competitors who wanted to launch consoles very powerfull and well designed.

The processus of innovation

● By creating the Wii, Nintendo creates a real revolution on the video game sector. This is a a radical innovation for the gameplay, and the risk they take with the cost of R&D and the different positionning is going to pay back.

« Innovation « Innovation distinguishes distinguishes

between a leader between a leader and a follower  »and a follower  »

Steve Jobs

The Wii UInnovation or

improvement ?

● The Wii is a console of the 8th generation, released in 2012.

● The main caracteristic of the Wii U, compared to the Wii, is the joystick which includes a touch screen. It is called the Wii U GamePad.

● It is the mix between a regular joystick and a touchpad.

● The functions of the gamepad are  : ➔ Play with the screen of the TV or with the

screen of the GamePad➔ Videoconference with other GamePad➔ Gyro sensors function➔ Joystick

● The console in itself is not much different from the Wii  :

The main difference is the size.

Can we really talk about innovation for

Wii U ?

● Innovation is not always about creating a new product. It can also be about improving something.

● There are 4 kinds of innovation :

● Wii U was supposed to be a radical innovation : new technologies and new marketing but...

It failed !!!

● Nintendo wanted to attract hardcore gamers with this console.But keeping the same name and the same design made a confusion on the mind of consumers.

● The marketing was not adapt enough and the Wii U appears to be an improved Wii.

● Also, the main technologies are the same than for the Wii

● Wii U is between architecturale innovation and incrementale innovation because of the lack of differences in technologies and marketing.