University Corporate Entrepreneurship Gaming Industry Report

This report delves into corporate entrepreneurship within the video game industry, examining the strategies and innovations of key players such as Nintendo, Microsoft, and Sony. It explores the impact of digital distribution and technological advancements on the industry's evolution, highlighting the significance of 'modding' and the rise of online gaming platforms. The report analyzes Nintendo's innovative approaches, including the Wii and Switch, and contrasts its strategies with those of Microsoft and Sony. It also discusses Nintendo's challenges, such as supply chain issues and competition from mobile gaming. Furthermore, the report evaluates marketing strategies for new gaming controllers, emphasizing the importance of targeting diverse customer bases and non-consumption markets. References are provided for all the studies and research used to create this report.

Running head: CORPORATE ENTREPRENEUR
CORPORATE ENTREPRENEUR
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1CORPORATE ENTREPRENEUR
Answer 1
Digital distribution along with the rise of the advanced internet technologies in gaming
stimulated the video game industry at the evolution of 21st Century. While the rate of the
distribution of internet technologies was deliberated to accomplish the consoles, it had immense
influence on the domain of PC gaming (Norman & Verganti, 2014). However, the elevating
support of digital distribution permitted smaller as well as autonomous developers to be
competent to acquire more probabilities without the treats related with the cost of generating
physical copies of the game. ‘Modding’ which is the act of modifying hardware and software or
implementing transformations to the game’s code has been recognized as an immensely
renowned activity during the early phase of 2000 (Hollensen, 2013). The next generation of
consoles such as Sony Play station 2 (2000) along with Microsoft Xbox (2001) and Nintendo
Gaming Cube released launched in the year 2001 offered various online gaming platforms via
internet. Although the gaming consoles would insulate PCs on the arena of digital multi gamer,
the introduction of Microsoft Xbox live in early 2000 as considered as their digital service
further introduced several recent features to the domain of digital console gaming.
Sony is implementing a consumer interactive approach for its product development in
order to sustain the video gaming industry with Nintendo and Microsoft. Sony anticipates that
gaming developers will identify the importance of core system and further introduce their smart
phones or tablet titles to Vita. However, Microsoft on the other hand, regardless to its
competition with portable services of Sony and Microsoft has shifted its focus in trading process
in a different currency (Kodama & Shibata, 2014). Microsoft furthermore has explicitly revealed
that their strategy concentrates on developing seamless Xbox Live Services across several
gaming platforms.

2CORPORATE ENTREPRENEUR
Answer 2
Nintendo has received immense recognition because of being one of the most innovative
thinking companies. The company’s inventive and creative ideas have achieved successes with
its creation of Wii and DS. In recent times, Nintendo has been making significant shifts towards
mobile along with the development of video gaming with the combined home or portable
consoles called the Switch (Goode, Dahl & Moreau, 2013). The most significant differentiator
of Nintendo has been its immense family-friendly approach further derived from its Wii’s
motion sensitive regulator to non-violent gaming characters such as Mario and Splatoon.
Nintendo has developed into one of the largest video gaming manufacturing industry
further producing over $ 4 billion in net sales in 2016. On the other hand, two of its primary
competitors Microsoft and Sony depend entirely on third party software for their consoles, a
major market proportion of Nintendo games are established in-house. It is further to note that
Nintendo’s rate of profitability from both hardware and software generated to an approximate
amount of $ 4 billion (Norman & Verganti, 2014). The sale of Nintendo’s most recognized
product called the Nintendo Wii has been reported to have amounted over 3 billion across the
world. Nintendo has been always implemented innovative strategy that has revealed the way it
launches enough hardware consoles to establish a sales record further by sustaining its systems
exceptional enough to increase its sales growth (Inoue & Tsujimoto, 2017). Several reports
reveal that each system of the company is an event that has managed to precede the sales record
of its competitors. The Nintendo has been known for setting its price at the appropriate rate
whereby they sales of Nintendo Switch accounted for around $300 during its launch in
comparison to Microsoft Play station 4 that ranged for around $400 during its launch.

3CORPORATE ENTREPRENEUR
Answer 3
Nintendo’s innovative approach with its NES Classic Edition gaming console has
reportedly underestimated the fundamental of stocking suffers as it was nearly impossible for
consumers to buy the product. As the company produced very less divisions that failed to cater
the broad array of users. Nintendo must initiate producing gaming consoles which must remain
to the recent times and further focus on the lack of legitimate controlling options related to
downloading recent games (Vargas-Hernández et al., 2014).
Responses to Nintendo’s NES, that was introduced, several uncertainty raised among the
gaming analysts based on the rate of sales NES Classic Edition would be able to compete against
the domain of smart phones as well as products based on tablets known as iPad in particularly
with the increasing device-centric gaming has been competing with the rapidly developing social
networking domain (Norman & Verganti, 2014). Though, NES Classic Edition has been
gathering recognition, the company is expected to progress more into the domain of social
networking business. However, it is to be noted that the base model of Nintendo NES Classic
Edition has been launched over the rate of $300 in US, the significance of Nintendo in the game
console market is anticipated to be at a market risk (de Oliveira Teixeira et al., 2013).
Furthermore, the existing dissatisfaction in the arena of US video game industry has been
accountable because of the high rated price of the leading gaming systems. However, Nintendo’s
decision related to controller can be regarded as advantageous to its competitor, Microsoft as it
established its foundation on the basis of service-subsidized hardware program.
Answer 4

4CORPORATE ENTREPRENEUR
Nintendo in order to market its new gaming controller in the video game console must
seek to expand and further develop its effective strategy of intensifying the gaming market needs
to focus of competing against the non-consumption domain. Being in the position of Nintendo’s
market management the company’s portable gaming devices must primarily focus on population
comprising of Baby Boomers who seek a seamless approach to contest the influence of
developing on their emotional perception. The company despite of concentrating on sharper
graphic designs, splendid sound system or complex gaming interfaces, Nintendo must extend its
market position by creating simpler and reachable video games that could cater to the entire
market (Baltaci et al., 2013). Furthermore, Nintendo can implement its strategy by concentrating
on health conscious women along with a non-conventional market catering video game systems.
Nintendo being the leading company in the portable gaming domain needs to continue to provide
its services that would further appeal to a diversified customer base (Goode, Dahl & Moreau,
2013). While video game consoles typically intends to gather young male population, the recent
Nintendo Wii red gaming console and controller must intend to focus on Wii-themed parties as
well as the introduce sessions of Wii bowling leagues in order to achieve the demands of the
product.

5CORPORATE ENTREPRENEUR
References
Baltaci, G., Harput, G., Haksever, B., Ulusoy, B., & Ozer, H. (2013). Comparison between
Nintendo Wii Fit and conventional rehabilitation on functional performance outcomes
after hamstring anterior cruciate ligament reconstruction: prospective, randomized,
controlled, double-blind clinical trial. Knee surgery, sports traumatology,
arthroscopy, 21(4), 880-887.
de Oliveira Teixeira, E., & Werther Jr, W. B. (2013). Resilience: Continuous renewal of
competitive advantages. Business Horizons, 56(3), 333-342.
Goode, M. R., Dahl, D. W., & Moreau, C. P. (2013). Innovation aesthetics: The relationship
between category cues, categorization certainty, and newness perceptions. Journal of
Product Innovation Management, 30(2), 192-208.
Hollensen, S. (2013). The Blue Ocean that disappeared–the case of Nintendo Wii. Journal of
business strategy, 34(5), 25-35.
Inoue, Y., & Tsujimoto, M. (2017). New market development of platform ecosystems: A case
study of the Nintendo Wii. Technological Forecasting and Social Change.
Kodama, M., & Shibata, T. (2014). Strategy transformation through strategic innovation
capability–a case study of Fanuc. R&D Management, 44(1), 75-103.
Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research vs.
technology and meaning change. Design issues, 30(1), 78-96.

6CORPORATE ENTREPRENEUR
Vargas-Hernández, J. G., & Velasco-Guzmán, M. O. (2014). Sony PlayStation Strategies in the
Video Market. Journal of Applied Management and Investments, 3(4), 265-273.