Nintendo

Revenue

¥1.056 trillion (2018)

Employees

5,501 (2018)

Founded

1889



Overview:
Nintendo Co., Ltd. is a Japanese multinational consumer electronics and video game company headquartered in Kyoto. Nintendo is one of the world's largest video game companies by market capitalization, creating some of the best-known and top-selling video game franchises, such as Mario, The Legend of Zelda, and Pokémon. Founded on 23 September 1889 by Fusajiro Yamauchi, it originally produced handmade hanafuda playing cards. By 1963, the company had tried several small niche businesses, such as cab services and love hotels. Abandoning previous ventures in favor of toys in the 1960s, Nintendo developed into a video game company in the 1970s, ultimately becoming one of the most influential in the industry and Japan's third most-valuable company with a market value of over $85 billion. From 1992 until 2016, Nintendo was also the majority shareholder for the Seattle Mariners of Major League Baseball.

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Industries:
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Information Technology
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Entertainment



Similar firms (based on pattern co-occurrence):
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3 shared patterns
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3 shared patterns
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3 shared patterns
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3 shared patterns
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4 shared patterns
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3 shared patterns
Business Model Patterns:

Aikido

How they do it: When the video console market was dominated by Sony (Playstation) and Microsoft (Xbox), Nintendo introduced the Wii console with totally different attributes and features than the two successful products from Sony and Microsoft. Instead of targeting serious gamers, the Wii targets a broader target group allowing them a more interactive and fun-focused game experience. In addition Nintendo first introduced a wireless controller with a movement detector, creating a totally different product than its competitors.

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Digitization

How they do it: Nintendo was one of the pioneers digitizing gaming experience and making multi-player gaming possible on a Nintendo device or TV screen. This allowed the company to introduce a completely new form of gaming experience, vastly different from traditional, offline games.

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E-commerce

How they do it: Nintendo sells its game consoles, games as well as accessories via their online store. In addition games can be downloaded directly from the interface of the console only requiring a registered account and an internet connection. This channel allows Nintendo to avoid any distribution or physical production costs.

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Lock-in

How they do it: Once a customer owns a Nintendo console, the only games compatible are the ones licensed by Nintendo itself. This means that Nintendo generates additional revenue with every game sold. It is generally not possible to run 3rd party games on the console which are not certified by Nintendo.

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Long Tail

How they do it: Nintendo offers a wide variety of games for its game consoles. The games are not necessarily developed from Nintendo itself but all need to be certified by Nintendo to run on the consoles. The large variety of games allow for targeting of different age groups and genres.

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Razor And Blade

How they do it: Nintento’s game consoles are the base product for the customer. However the consoles only run Nintendo certified games on it.

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