Brian Howard (brihow)

Nintendo… there’s no play like it

Problem● People need something to do

Products (Recent)● Home Consoles (Wii, Wii U, Switch)

● Handheld Consoles (DS/3DS and variants)

FinancialsProfitable? - Kind of

2013 - $75.5 million net income

2014 - $225 million net loss

2015 - $348 million net income

2016 - $146 million net income

Revenue has been decreasing

Yen(¥)

Business Model● Advertise to all types of people

● Quality content over hardware, “Seal of Quality”

● Sometimes even sell console at loss (Wii U, to name one)

History1889 - Founded as a card company

1963-1968 - Multiple business ventures, all failed but toymaking

1980 - Game & Watch

1983-1985 - NES basically saves video game market from crash

1989 - Game Boy, handheld dominance begins

2004 - Nintendo DS sells 154m+

2006/2012 - Wii sells 100m+, Wii U bombs

2016 - First mobile game

2017 - Switch - success or failure - tbd

Secret Sauce● Family friendly, age unrestricted fun

● “Simplicity can be a disruptive innovation”

● Appease casual and “hardcore”

Role● Sometimes a shaker, sometimes… not so much

● Innovative design, for better or worse

Competition

Handheld Target Audience

Home Console Specs

Console Starting Prices

Nintendo Yes Everyone Low Lower

Sony Yes Selective High Higher

Microsoft No Selective High Higher

Prediction - Neutral● Huge cash reserve (some $4+ billion)

● Haven’t really shaken anything recently, Switch tbd.

● History of success and failure

Sourceshttps://en.wikipedia.org/wiki/History_of_Nintendo

https://en.wikipedia.org/wiki/List_of_best-selling_game_consoles

http://blog.printrunner.com/nintendo-business-model/

https://finance.yahoo.com/quote/NTDOF

https://www.nintendo.co.jp/ir/pdf/2013/annual1303e.pdf

https://www.nintendo.co.jp/ir/pdf/2014/annual1403e.pdf

https://www.nintendo.co.jp/ir/pdf/2015/annual1503e.pdf

https://www.nintendo.co.jp/ir/pdf/2016/annual1603e.pdf