Mobile: the Next Platform for Nintendo
by taeyi kim
While browsing through classmates’ blogs, Michelle Kwok’s submission, titled “Mobile Nintendo?” had several interesting perspectives on Nintendo’s current business decisions that I found relatable and largely support.
Nintendo is a Japanese company that started the “era of living-room gaming.” Nintendo is often credited as the precipitator for an enormous consumer base today with companies like Sony and Microsoft entering the market with their video game consoles.
The 21st Century has presented the proliferation of smartphone gaming, technological advancements and independent developers outside of the mainstream video game providers. The rapid growth of the smartphone market has forced companies to remain competitive in that industry, provoking traditional gaming companies to adapt their strategies and utilize smartphones as personal gaming devices.
Michelle discusses the “huge change” of Nintendo to “jump-start” into the mobile gaming market with mobile “Super Mario Run,” and resisting their conservative approach towards games. Additionally, Michelle offers her opinion, which postulates that Nintendo’s efforts to sustain themselves by refocusing their production are beneficial to the company.
I agree with Michelle’s point that shifting their focus to smartphones was a wise choice for Nintendo. Free-to-go smartphone games are ubiquitous, and their primary customers (casual gamers) would prefer to pay a small amount of money rather than purchase an expensive console. Likewise, many consumers already own smartphone devices, so the idea of paying for additional applications at relatively low costs is appealing to everyday users.
As in any market, consumer opinion and taste change with time and trends. As customers’ shift their values and needs, companies have to adapt in order to satisfy demand and prevent becoming obsolete. For instance, if the Gap continued selling wide leg jeans instead of keeping current with consumption trends, we can assume they would not generate a revenue. The same can be said for cars, sports merchandise and technologies.
The relationship between businesses and customers’ buying style reflects the natural process of coevolution; in order for a business to remain competitive, they must adapt to changing customer preferences. Nintendo provides an example of this awareness by recognizing a trend and utilizing this to reestablish themselves as innovators in the field.
The concept of transient advantage refers to a strategy that allows firms to change more quickly and more often to maintain a strong position in the market for many years. Nintendo embraced the fact that they need to adapt and recognized that utilizing transient advantage meant that needed to pursue new initiatives. However, Nintendo has not abandoned their traditional interests in developing gaming consoles, which illustrates their belief that they remain influential and competitive in that realm of gaming.
Word count: 434
References:
https://www.innosight.com/insight/making-the-shift-from-sustainable-to-transient-advantage/