The Nintendo Wii
• Japanese company started in 1889 • Oldest, largest, and most renown in console manufacturing • Market Capitalization=$78.4 billion • Stock valued at around $69-$70 (closed at $69.16 on Oct.5, 2007) • Experienced huge financial success with introduction of Wii- launched Nov.19, 2006
– 11 million sold by Oct.8, 2007
• Prior to Wii: success with Nintendo 64 and the handheld platform, Nintendo DS
• Total assets= $13.5 billion • Net income =$1.5 billion • Revenues= $8.27 billion –From $4.35 billion in 2006
Stock Performance:
Nintendo Co., Ltd. vs. Microsoft Co. & Sony Cp. – 5 Years
The Wii’s Features
• Cutting Edge controller system: includes “Wii-mote” and motion sensor bar over TV which detect players’ movements • USB and WiFi capabilities enable internet connection • Comes with Wii Sports package
COMPETITVE ADVANTAGE
• Low price of $249.99 • Low switching cost because of compatibility with GameCube games and controllers • The “Wii- mote” • Enters new market: family gaming, accessible for people of all ages
Wii triumphs over top competitors!There’s no match for The Wii!
New Markets
• The Wii has been able to attract new audiences including older and younger people as well as women • Still has appeal for “veteran” gamers • Network effects
Fun For the Whole Family
Let the lines begin!
What’s in store for the upcoming holiday season
“If you see one buy it!”- George Harrison, Senior VP of
Marketing and Corporate Communication at Nintendo of America
The Holiday Rush
• 1OO additional games • New controllers: the Wii Zapper (handheld gun), the Wii Steering Wheel, the Wii Balance Board • Guitar Hero 3 for Wii
Threats to the Wii
• Injuries occur because of losing control of controllers • Hard for Nintendo to meet demand for product • Eventually competitors will catch up and cater to these new markets
Gaming for a Good Cause
• Wii used in brain rehabilitation • Physical therapy for strokes • Used for patients with movement and balance problems • Army uses Wii for injured soldiers
QUESTIONS?