HISTORY OF NINTENDO CONSOLES By the Numbers… (10) Wii U Launch date: 2012 Lifetime sales to date: 13.36 million units Launched in 2012 — an attempt to beat both Microsoft and Sony to the market — the Wii U took the name of the highly-successful Wii console and ran it into the ground. Through a mix of unclear messaging and underpowered hardware, Nintendo failed to sell console buyers on the new system. Consumers instead turned to the likes of Sony's PlayStation 4 and Microsoft's Xbox One for their gaming consoles. (9) GameCube Launch date: 2001 Lifetime sales to date: 21.74 million units Nintendo's GameCube helped launch the dawn of the modern era of video games. The competition shifted from a battle between Nintendo, Sega, and Sony to a battle between Nintendo, Sony, and Microsoft. Nintendo launched its last "traditional" game console in this time period. (8) Nintendo 64 Launch date: 1996 Lifetime sales to date: 32.93 million units With the introduction of the N64 console, Nintendo shifted gears and made significant changes from the competition’s products. Instead of using digital media for games (compact discs), the N64 was the last Nintendo console to use cartridges. This severely limited the Nintendo 64 technologically against competitors and resulted in a shift in the balance of market share. (7) Super Nintendo (SNES) Launch date: 1990 Lifetime sales to date: 49.1 million units When Nintendo's first system, the Nintendo Entertainment System (NES), was at the peak of its popularity, it dominated over 90% of the American video game market. However, the company faced very little (if any) competition. However, when Nintendo launched its Super Nintendo system in 1990, Sega was beginning to gain millions of fans with its Master System and Genesis consoles. (6) Nintendo 3DS Launch date: 2011 Lifetime sales to date: 13.36 million units With the 3DS, beyond mobility, Nintendo hoped to differentiate its product with a glassesfree 3D experience. Consumers weren’t overly impressed with the 3D tech fortunately sales remained strong with a strong lineup of games, a low price point, and aggressive marketing. Even still, it sold half the units of its predecessor (a difference of nearly 60 million units). (5) Nintendo (NES) Launch date: 1983 Lifetime sales to date: 61.91 million units The console that started it all: the Nintendo Entertainment System, more commonly known as the "NES“, the console became a cultural touchstone for millions of people. For years, parents all over America referred to all video game consoles as "the Nintendo" — like Xerox stands in for photocopies and Kleenex stands in for tissue paper — largely due to Nintendo's complete video game dominance in the mid-'80s. Talk about building a powerful brand! (?) Nintendo Classic Launch date: 2016 Lifetime sales to date: ? Nintendo recently released a “classic” version of its old NES console for $60. The system quickly sold out (within days) and, based on the high demand and low supply, is currently selling for us much as $400 on eBay. Details are foggy as to how many more units of the console Nintendo will be supplying over the holidays but one thing is obvious: the popularity of Nintendo’s original gaming system remains strong with consumers. (4) Game Boy Advance Launch date: 2001 Lifetime sales to date: 81.51 million units Nintendo's handheld systems are notoriously enduring, and the GBA was no exception. It played games that were about as impressive as those on the SNES, but it was a handheld that fit in your pocket! Keep in mind this was years before the normalization of smartphones, years before Apple ever unveiled its iPhone. (3) Wii Launch date: 2006 Lifetime sales to date: 101.63 million units In the long, steady decline of sales of Nintendo's living room game consoles, the Wii is the shining exception. It sold exceptionally well, and its motion-based controls attracted gamers and non-gamers alike. The Wii is still the only game console that's just as likely to be found in a living room as it is in a retirement home — that's an incredible accomplishment. Despite being innovative and assuredly pushing the video game market towards new input methods like motion controls (Microsoft's Kinect and Sony's PlayStation Move attest to that), the console is viewed as a failure by many market analysts. That's for one simple reason: The Wii was purchased by over 100 million people, but few of those folks ended up buying games for it. (2) Game Boy Launch date: 1989 Lifetime sales to date: 118.69 million units Much like the original NES, the original Game Boy is regarded as a classic at this point. It was, for millions, the machine that powered "Tetris" — indisputably one of the best games ever made. It was also the console that kept millions of kids from incessantly asking, "Are we there yet?" on family vacations, that kept millions of commuters from reading while on the subway, that enabled kids to stay up far past their bed time playing games. (1) Nintendo DS Launch date: 2004 Lifetime sales to date: 154.02 million units Nintendo's most successful console ever made, by a huge margin, is the Nintendo DS. It was innovative — two screens! touch gameplay! a microphone built right in! — and ahead of its time. The iPhone didn't launch until 2007, and it was another year-plus before Apple's ubiquitous phone pushed into mobile gaming. Gamers marveled at its impressive graphics, its innovative approach to design, and its mobility. It delivered on the promise of the Game Boy and upped the ante. It's no surprise that the DS is Nintendo's most successful console — in many ways it embodies the best aspects of Nintendo's business, all in one. It's unique, inexpensive, full of great games, and fills a need that most folks didn't know they had. Nintendo Switch Launch date: 2017 Lifetime sales to date: ???????? Nintendo hasn’t released many details relating to the upcoming launch of the Nintendo Switch leaving many analysts to wonder, where will it rank five years from now??? DISCUSSION QUESTIONS 1) WHY DO YOU THINK THE NINTENDO “CLASSIC” HAS BEEN SO POPULAR WITH CONSUMERS? 2) DO YOU THINK NINTENDO STRATEGICALLY LIMITED DEMAND FOR THE “CLASSIC” CONSOLE? WHY OR WHY NOT? 3) WHAT MUST NINTENDO’S “SWITCH” CONSOLE MUST DO TO COMPETE WITH SONY AND MICROSOFT GAMING CONSOLES? 4) WHAT IS PRODUCT DIFFERENTIATION? WHAT IS POSITIONING? 5) HOW HAS NINTENDO DEPLOYED DIFFERENTIATION AND POSITIONING STRATEGIES IN THE PAST TO HELP MARKET THEIR PRODUCTS? 6) WHAT IS COMPETITION? HOW DOES COMPETITION IMPACT YOU AS A CONSUMER? 7) WHO ARE NINTENDO’S COMPETITORS? 8) HOW MIGHT NINTENDO POSITION / DIFFERENTIATE THE “SWITCH” CONSOLE TO GAIN A COMPETITIVE ADVANTAGE IN THE MARKETPLACE? 9) IF YOU WERE RESPONSIBLE FOR MARKETING THE SWITCH CONSOLE OVER THE HOLIDAYS, WHAT WOULD YOU DO?
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