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Case Details:
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Nintendo: Disruptor Being Disrupted  
Product Ref: 12/506C Company: Nintendo

Product Type: Case Industry: Consumer Goods
Software & Services
Technology Hardware

Related Product(s): Teaching Note
In February 2011, Nintendo released the next evolution of the DS line of handheld gaming devices in Japan: the Nintendo 3DS. Despite initial rave reviews of the new device, sales figures were much lower than expected. In July 2011, Nintendo announced that it would reduce the price of 3DS by 30% to boost sales. At the same time, Nintendo president Satoru Iwata declared salary reductions for all of Nintendo's directors, starting with a 50% cut of his own salary. In October 2011, Nintendo predicted that the net loss for the year ending in March 2012 would be US$264 million, a first in the company's 30-year history. Back in 2006, the Nintendo Wii disrupted the video game industry, and in the following years, Nintendo was disrupted by Microsoft with Kinect and by Sony with PlayStation Move as well as by Apple and Google with their game-changing products targeting the mobile industry. It remained unclear how Nintendo could turn around and reclaim the few glorious years after the release of the Nintendo Wii game console and the Nintendo DS handheld game device.
Functional Area : Strategy & General Management

Learning Objective: This case provides an analysis of how technology companies such as Nintendo can cope with a fast-paced environment, the disruptive innovations that Nintendo faces and how companies can innovate in order to stay competitive in high-growth industries.
Length: Text: 11 pages
Exhibits: 6 pages
Country: Japan

Pub. Year: 2012 Level of Difficulty: 2
This product type is available in the following language(s):      English
Related Information: N/A
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