1

A brand audit by: Edward Oboli

Prof. Haworth

Table of Contents:
1.
2.
3.
4.
5.
6.
7.
8.

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11.

Company Overview
Category & Competition
Products
Brand Analysis

3
19
21
24

Consumer Profile
Advertising & Marketing Communication
Media and Promotions
Internet
Pertinent Info
Brand Value
Brand Exploratory
Works Cited

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34
36 & 37
38
41
42
43
46

Company: Nintendo

Location: Kyoto, Japan

Organization and Major Activities: The company manufactures and sells gaming and home entertainment products. It also
manufactures and markets hardware and software for its home video game systems.
Subsidiaries: Nintendo of America Inc, Nintendo of Canada Ltd., Nintendo of Europe GmbH, Nintendo France S.A.R.L., Nintendo
Benelux B.V., Nintendo Iberica S.A., Nintendo RU LLC., Nintendo Australia Pty. Ltd., Nintendo Taiwan Co. Ltd., Nintendo of Korea
Co. Ltd., Nintendo Technology Development Inc., Nintendo Software Technology Corporation, Nintendo (Hong Kong) Co., Ltd.,
Nintendo European Research ad Development SAS, Mario Club Co., Ltd., Nintendo Network Service Database Inc., Monolith
Software, Ltd., 1-Up Studio co,. Ltd, Nd Cube Company, Ltd ., Retro Studios, Inc., SiRAs.com Inc., and iQue, Ltd.
Brand History: Nintendo was founded as Marufuku Company, Ltd., in Kyoto, Japan, in 1889 by Fusajiro Yamauchi. Marufuku made
playing cards for the Japanese game of Hanafuda, believed to have its origin from Tarot cards. In 1907 Marufuku introduced the first
Western-style playing cards in Japan. Marufuku initially made the cards for Russian prisoners of war during the Russo-Japanese
War of 1904-05, when the soldiers wore out the decks they had brought from Russia. Between 1907 and World War II Marufuku
solidified its status in the playing card business. World War I, in which Japan fought on the side of the Allies, did not affect business
in any remarkable way. In 1925, however, Marufuku began exporting Hanafuda cards to Japanese communities in South America,
Korea, and Australia. From 1925 to 1928 Marufuku developed new marketing strategies to place its products in tobacco shops,
complemented by aggressive, more Westernized advertising.
The rest of Nintendos brand history will be shown in the bullet points below:
1933- The company was established as an unlimited partnership, Yamauchi Nintendo & Co.
1947- Mr. Yamauchi began a distribution company, Marufuku Co. Ltd.
1950- Hiroshi Yamauchi took office as President and headed the manufacturing operation of Yamauchi Nintendo & Co.
1951- The name of the company was changed to Nintendo Playing Card Co. Ltd.
1952- The company's consolidated factories were dispersed in Kyoto, Japan.
1953- Nintendo Playing Card Co. Ltd. became the first to succeed in manufacturing mass-produced plastic playing cards in Japan.
1959- The company started selling cards printed with Walt Disney characters, opening up a new market in children's playing cards
and resulting in a boom in the card department.
1963- The company changed its name to Nintendo Co., Ltd. and started manufacturing games in addition to playing cards.
1970-The stock listing was changed to the first section of the Osaka Stock Exchange. A reconstruction and enlargement of
corporate headquarters was completed. The company began selling the Beam Gun series, which employed opto-electronics,
introducing electronic technology into the toy industry for the first time in Japan.

Company: Nintendo (cont.)

1973-The company developed a laser clay shooting system which rivaled bowling as a major pastime in Japan.
1974-Nintendo developed an image-projection system and employed the 16mm film projector in amusement arcades. The
company began exporting these arcade machines to America and Europe.
1975-In co-operation with Mitsubishi Electric, Nintendo developed a videogame system using an electronic video recording
(EVR) player for Japan.
1976-The microprocessor was introduced into a videogame system created by Nintendo.
1977-The company developed home-use videogames in cooperation with Mitsubishi Electric: "TV Game 15" and "TV Game 6".
1978-In March, Nintendo released a simplistic arcade cocktail table game based on the board game Othello, entitled Computer
Othello. On the screen, green, white and black Othello pieces were replaced with square and plus symbols, respectively.
Computer Othello had no joystick, only ten coloured buttons per player.
1979-Minoru Arakawa, son-in-law of Nintendo's Japanese chief Hiroshi Yamauchi, opened Nintendo of America in New York
City. Nintendo started an operations division for coin-operated games.
1980-The company created a wholly owned subsidiary, Nintendo of America Inc. in New York. Nintendo began selling the
"GAME & WATCH" product line in Japan, the first portable LCD videogames with a microprocessor. Nintendo artist Shigeru
Miyamoto created the game Donkey Kong. The hero, originally called Jumpman, is a carpenter
racing to save his girlfriend,
Pauline, from a crazed ape. Jumpman was later renamed during the establishment of Nintendo of America's headquarters by
Nintendo Co., Ltd. In honor of Jumpman's resemblance to their office landlord, Mario Segali, he was later renamed 'Mario'.
1981-Nintendo developed and distributed the coin-operated video game "Donkey Kong." This video game quickly became the
hottest-selling individual coin-operated machine in the business.
1983- The company built a new plant in Uji City to increase production capacity and to allow for business expansion. In July,
Nintendo listed stock on the first section of the Tokyo Stock Exchange and started work on the home videogame console "Family
Computer" (Famicom), employing a custom CPU (Custom Processing Unit) and PPU (Picture Processing Unit).
1984-Nintendo developed and started selling the unique, twin-screen interactive coin-operated videogame "VS. System". At the
same time, the company launched the Famicom system in Japan, later renamed Nintendo Entertainment System (NES) when it
launched worldwide. Stellar software titles were developed one after another, from Excitebike, Super Mario Bros. and Metroid to
The Legend of Zelda and Punch-Out! From these titles, it was Super Mario Bros. that quickly became a smash hit around the
world. Studies at the time showed that children were as or more familiar with Mario as they were with Mickey Mouse and Bugs
Bunny.

Company: Nintendo (cont.)

1986- The Nintendo Entertainment System was launched in Europe and instantly became a major hit and a must-have in homes
across the continent. Nintendo developed and began selling the "Family Computer Disk Drive System" in Japan to expand the
functions of the Famicom. Also in Japan, the company began installation of the "Disk Writer" to rewrite game software.
1987-Nintendo sponsored a Famicom "Golf Tournament" in Japan as a communications test using the public telephone network
and Disk Faxes to aid in building a Famicom network.
1988-The company researched and developed the Hands Free controller, making the NES accessible to even more Nintendo fans.
The game library for the NES grew to 65 titles, helping to broaden the system's appeal to include more adults.
1989-The Game Boy, the first portable, handheld game system with interchangeable game cartridges, is introduced in Japan along
with Tetris.
1990-Japan entered the 16-bit market by releasing the Super Famicom in the autumn. Game Boy was launched in Europe and
established what would become an astronomical worldwide installed base for the Nintendo handheld console. In June, Nintendo of
Europe was set up as a wholly owned subsidiary of Nintendo, based in Grossostheim, Germany.
1992- The Super Nintendo Entertainment System (Super Famicom) was launched in Europe in June. The console went on to sell
more than 46 million units worldwide. Japan saw the release of the Super NES Super Scope and Mario Paint with the Super NES
Mouse Accessory. The long-awaited Zelda sequel, The Legend of Zelda: A Link to the Past, also arrived for the Super NES.
1993-The Super FX Chip was announced: a breakthrough technology for home video systems. The first game using the Super FX
Chip, Star Wing, was released in April. Nintendo of the Netherlands was established and Nintendo products, which had previously
been distributed and managed by Bandai in the Netherlands, were handed over. Other subsidiaries were also established in
France, UK, Spain, Belgium and Australia.
1994-The Super Game Boy accessory was released, expanding the library of games that could now be played on the Super NES.
Nintendo helped pioneer the development and implementation of an industry-wide rating system in the United States. This year
also saw the introduction of a game that would set a new standard in video game excellence - using proprietary Advanced
Computer Modeling (ACM) graphics, Donkey Kong Country took the US holiday season by storm. The Nintendo Gateway was
launched, putting Super Nintendo units and a selection of SNES games into commercial planes for the enjoyment of passengers.

Company: Nintendo (cont.)

1995-Thanks to the success of Donkey Kong Country, ACM graphics were introduced to the Game Boy system by way of Donkey Kong
Land. Along with this boost to the Game Boy system line, Nintendo also introduced the Play It Loud! series of Game Boy systems with
colour casings. ACM graphics made another appearance on the Super NES with the release of the arcade smash-hit, Killer Instinct. In
Japan, Nintendo began selling the SatellaView adapter for Super Famicom, enabling the system to receive digital data from a broadcast
satellite. At the same time, Nintendo introduced a 32-bit Virtual Immersion system known as the Virtual Boy. Nintendo enhanced the
quality of ACM graphics for the upcoming release of Donkey Kong Country 2: Diddy's Kong Quest and released Cruis'n USA and Killer
Instinct in arcades. Nintendo produced its one billionth game cartridge.
1996-Nintendo 64 launched in Japan on 23 June. Thousands lined up to be the first to experience the world's first 64-bit home
videogame system. More than 500,000 systems were sold on the first day. Another system launch occurred in early September when
Nintendo introduced the Game Boy Pocket, a sleeker, 30-percent-smaller version of the world's most popular handheld. Super Mario 64
was proclaimed by many as "the greatest video game of all time." Meanwhile, the Super NES saw the release of the third game in the
continuing Donkey Kong series, Donkey Kong Country 3: Dixie Kong's Double Trouble. Pokmon, a new gaming phenomenon on the
Game Boy, was released in Japan on 26 February.
1997-In March, Nintendo 64 launched in Europe and sold 2.3 million in the first year. Nintendo introduced the Rumble Pak, which
enabled players to feel the realistic vibrations contained in the game.
1998-Nintendo introduced Game Boy Color and the innovative devices Game Boy Camera and Printer, bringing new life to the longestrunning hit in the history of interactive entertainment. Game Boy Color systems were cased in two brand-new colours: purple and clear
purple. The highly anticipated The Legend of Zelda: Ocarina of Time for Nintendo 64 was released, setting new standards and breaking
pre-order records for any videogame to date.
1999- Nintendo released Pokmon throughout Europe on 8 October. Nintendo expanded the library of high-quality software with
innovative titles such as Pokmon Snap and Pokmon Pinball, the latter including a built-in rumble feature. Hits such as Mario Golf,
Donkey Kong 64 and Perfect Dark were launched. Also, during the summer, the range of Game Boy Color coloured casings expanded
with red, green, yellow and blue added to the collection.Nintendo first announced plans for a new system utilising an IBM Gekko
Processor and Matsushita's Unique DVD Technology.
2000- The Nintendo Game Boy became the most popular selling console ever as sales surpassed 100 million. Meanwhile, the
Pokmon franchise continued to be a worldwide phenomenon, and Nintendo celebrated its success with a limited edition release of
Pikachu Nintendo 64. The N64 expanded its library of classics with hits such as The Legend of Zelda: Majora's Mask, Ridge Racer 64
and Mario Tennis. The Nintendo of the Netherlands office became responsible for both Belgium and the Netherlands market and
changed its name to Nintendo Benelux. Meanwhile, the headquarters of Nintendo Co., Ltd were relocated to Minami-ward of Kyoto,
Japan.

Company: Nintendo (cont.)

2001-Nintendo UK was established in January, and a new office opened in Slough, Berkshire, UK. Pokmon Gold and
Silver for Game Boy Color were simultaneously and successfully launched in Europe on 6 April, 2001. Over its launch
weekend, one million units of Pokmon Gold and Silver were sold, making it the fastest selling game ever in Europe.
Game Boy Advance launched on 21 March in Japan, 11 June in US and 22 June across Europe. It set the mark as the
fastest selling console ever with 500,000 units being sold within the first week in Europe. Game Boy Advance launch
successes included first-party favourites such as Super Mario Advance and F-Zero: Maximum Velocity. Nintendo
GameCube was launched on 14 September, 2001 in Japan and 18 November, 2001 in America. In all, 2.7 million units
were shipped by December, of which 95% sold through. The sales success of Luigi's Mansion and Super Smash Bros.
Melee marked both popular games as flagship titles for the console. Game Boy Advance e-Reader hardware launched
in Japan on 1 December and brought a new meaning to portable gameplay. Different game information stored on eReader cards could be swiped through the e-Reader and transferred onto the Game Boy Advance.
2002-Nintendo Italia was established on 2 January and opened an office in Milan. Game Boy Advance - now available in
new Black and Platinum editions - smashed the 5 million hardware units barrier across Europe. Pokmon mini, the
world's smallest console, was launched on 15 March across Europe with four titles, including Pokmon mini Party and
Pokmon mini Pinball. Nintendo, Sega and Namco announced joint development of 3D computer graphic board
"TRIFORCE" on 22 February for next generation arcade machines. Nintendo GameCube launched in Europe on 3 May
with 1 million units, a recommended retail price of 199 and 20 launch titles. Since that time, it's been joined on the
shelves by spectacular new Mario adventure Super Mario Sunshine, revolutionary wireless controller Nintendo
WaveBird, and over 100 titles of every genre and description. At the end of May, after 52 years at the helm of the
company, Nintendo Co., Ltd, President Hiroshi Yamauchi announced his retirement, naming Satoru Iwata as his
successor. By the end of 2002, more than 25 million Game Boy Advance units were in homes around the world.
2003-In March, the Game Boy Advance SP was released, building on the massive success of the Game Boy Advance
by adding a smart clam-shell design. The new system was an instant success. March also saw the release of the
stunning Metroid Prime, hailed by fans and critics alike as one of the best games for Nintendo GameCube. In May, to
celebrate the first birthday of Nintendo GameCube, the eagerly awaited The Legend of Zelda: The Wind Waker arrived,
bringing one of Nintendo's flagship characters to the system in striking, cel-shaded style. In June, the release of the
Game Boy Player for Nintendo GameCube meant that gamers could experience Game Boy and Game Boy Advance
titles on their television sets. With the release of Pokmon Ruby and Sapphire in July, the Pokmon phenomenon
erupted for the first time on Game Boy Advance. October saw the return of a well-loved franchise in the form of Mario
Kart: Double Dash!! for Nintendo GameCube.

Company: Nintendo (cont.)

2004-January saw the worldwide announcement of Nintendo's mystery system: the Nintendo DS, a dual-screened
handheld with Touch Screen technology. In the autumn, Pokmon FireRed and LeafGreen are launched for Game Boy
Advance, continuing the success of the Pokmon phenomenon. 2004 also saw the arrival of many different special
editions of the Game Boy Advance: Tribal Edition (June), Classic NES Edition (July), Limited Pink Edition (October),
Zelda Limited Edition (November) and Mario Limited Edition (November) were all released across Europe. Toward the
end of the year, the Nintendo DS was released in the US and Japan to immediate success. The new dual-screened
system also featured wireless multiplayer, Touch Screen technology and backward compatibility with Game Boy
Advance titles.
2005-On 11 March, the Nintendo DS was launched in Europe to immediate success. By June the system had sold a
million units throughout Europe. Meanwhile, Nintendo introduced the Game Boy Micro. Measuring just 4 inches wide by
2 inches tall, the ultra-stylish Game Boy Micro featured a backlit screen.
2006-Nintendo DS rose to the top of the gaming world as the most popular portable console, thanks to games suitable
for everyone. Players all over Europe made Animal Crossing: Wild World, New Super Mario Bros and Metroid Prime
Hunters best-sellers. Nintendogs ushered in the Touch! Generations brand of games, a range of titles that let people
play like never before. Dr Kawashima's Brain Training - the top Touch! Generations title - became a huge hit even
among people who never played before. Nintendo DS renewed its look in June with the Nintendo DS Lite, which
features brighter screens along with its slim design. The year ended with the launch of Wii. The new home console with
its innovative control system found an audience with both Nintendo fans and those who don't traditionally play
videogames. The console's success is bolstered by titles such as Wii Sports and the newest episode in the Zelda series,
The Legend of Zelda: Twilight Princess. Prior to the launch of Wii, Nintendo President Satoru Iwata conducted a series
of internal interviews with Nintendo staff as well as external developers providing an in-depth look behind the scenes of
the company and the process of bringing new hardware and software to market. The Iwata Asks series of interviews
would be continued in years to come, often candidly revealing information about the inner workings of the company, both
past and present.
2007- With Wiis emergence at the end of 2006, the stage was set in 2007 for the arrival of a range of titles that took
advantage of the systems unique capabilities and threw the door wide open to a whole new gaming audience.

Company: Nintendo (cont.)

2008- Building on the growing number of people discovering videogames for the first time through Wii and Nintendo DS whilst
continuing to cater to long-time Nintendo fans, 2008 saw the release of more software that quickly scored a direct hit with public
affections. In April, Wii Fit and the Wii Balance Board took Europe by storm, inviting whole families to have fun at home whilst
becoming more aware of their personal fitness levels. Later in the year, the launch of Mario Kart Wii and the Wii Wheel accessory
brought players of all ages and experience levels together for classic Mario Kart action that was straightforward for beginners and
engrossing for experts. The month of May saw the launch of WiiWare, a game download service that offered Wii owners access to a
host of affordable and varied new titles that could be purchased from the comfort of their sofas via the Wii Shop Channel. Another new
service, the Nintendo Channel, was also launched on Wii, providing users with access to info, news and interviews relating to
upcoming titles. In June Nintendo of Europes website welcomed another country with the inclusion of South Africa. Towards the end
of the year two more high-profile titles were released for Wii. Shigeru Miyamotos entry into the music game genre, Wii Music, allowed
families to get together and freely experiment simulating the playing of a wide variety of music instruments. Closing the year was
Animal Crossing: Lets Go to the City which supported the Wii Speak accessory, connecting living rooms across an Internet
connection, allowing players to talk to each other as they visited each others towns in the game.
2009- In March, Nintendo Iberica S.A. opened a branch office in Lisbon to provide marketing and commercial services of Nintendo
products in Portugal. During the same month Nintendo also announced it had shipped its 100 millionth Nintendo DS system worldwide.
A month later the Nintendo DS range grew with the arrival of Nintendo DSi in Europe. The new handheld system included new camera
and sound features that took the experience of using DS to the next level and made it an indispensable asset for those who picked one
up. Another major new feature was the introduction of Nintendo DSiWare, allowing players to download an ever-growing range of
games and applications to give their handheld an even more personal touch. Notable releases that gave players a platform to let their
creative juices flow were Mario vs. Donkey Kong: Minis March Again that allowed players to create and share their own levels, while
the free Flipnote paved the way for an entire community of budding animators to share their handmade flipnotes with the world.This
year also saw the release of the eagerly awaited Pokmon Platinum Version as well as Professor Layton and Pandoras Box, while the
active play phenomenon was extended to Nintendo DS with the release of Walk With Me: Do You Know Your Walking Routine?
which included two Activity Meters allowing players to keep track of their walking routines in a playful way. Wii Fit returned in a new
shape, with Wii Fit Plus offering users more ways to monitor their fitness. The addition of a Calorie Check tool and the option of
customising workouts around a players own personal needs ensured it was even more convenient for everyone to find their feet with
the hit fitness software. November saw the eagerly awaited launch of New Super Mario Bros. Wii, which offered the first four-player
experience in a Mario adventure, letting experienced players help newcomers along as they stormed Bowsers castle together and
catering for the continued expansion of the gaming audience as well as long-time Mario fans.

10

Company: Nintendo (cont.)

2010-In January Nintendo announced it would be distributing Monster Hunter Tri for Wii in Europe, as part of an ongoing effort of
providing strong third party support for quality titles. With free online play and full Wii Speak support the Japanese gaming
phenomenon made its first entry on a Nintendo system. February saw the launch of a limited edition Pink Nintendo DSi bundle
including Nintendo presents: Style Boutique, the 2009 game that lets players experience the ins and outs of running their own
fashion emporium. The Nintendo DS range of handheld systems grew even larger in size in March when Nintendo DSi XL went on
sale in Europe. Including all the features of the original Nintendo DSi, the Nintendo DSi XL boasted larger screens, a wider viewing
angle making it suitable for playing games together, as well as a larger, more comfortable stylus and pre-installed Nintendo
DSiWare games and applications. Pokmon HeartGold Version and Pokmon SoulSilver Version joined the system on shop
shelves in the same month, while more bite-sized fun came in April with the release of WarioWare: Do It Yourself for the Nintendo
DS family of systems. September saw another gaming icon reach a milestone, as Nintendo commenced celebrations for Marios
25th anniversary. Marking a quarter of a century since the release of Super Mario Bros. in Japan, the campaign included several
limited edition hardware bundles released to celebrate Marios career.
2011-Early 2011 saw the release of Nintendo 3DS, which allows users to see stereoscopic 3D visuals without the need for special
glasses. The system launched with a varied software line-up, including Nintendo-developed games Pilotwings Resort and
nintendogs + cats, and its catalogue expanded in May with Steel Diver and Dead or Alive Dimensions, distributed and marketed in
Europe by Nintendo. Meanwhile, Wii owners were not left in the cold with the releases of Mario Sports Mix and Kirbys Epic Yarn in
February. Nintendo continued to enhance the offering of Nintendo 3DS throughout the year, giving users access to innovative and
unique games exclusive to Nintendo 3DS, Virtual Console classics, and over 1,000 DSiWare games with the launch of Nintendo
eShop in June. The same month also gave Nintendo 3DS owners the opportunity to enjoy a fresh take on an old favourite in The
Legend of Zelda: Ocarina of Time 3D, including remastered graphics and new features such as Boss Challenge and motion
controls. Wii owners were treated to one of the systems biggest games in August with the release of Xenoblade Chronicles. This
expansive role-playing game featured an innovative combat system, a cast of unique characters and a rich, compelling game world
for players to explore. Nintendo DS owners could embark on a unique journey of their own in Inazuma Eleven, a blend of RPG and
football from LEVEL-5, developer of the Professor Layton games. Nintendo commemorated 25 years of The Legend of Zelda in
2011, with a range of activities throughout the year. In September, Nintendo made The Legend of Zelda: Four Swords Anniversary
Edition on DSiWare available for free for a limited time, and later in the year London played host to a special one-off concert, The
Legend of Zelda 25th Anniversary Symphony Concert Tour. The anniversary celebrations culminated with the November launch of
The Legend of Zelda: Skyward Sword for Wii, alongside a special limited edition gold-coloured Wii Remote Plus. November and
December truly offered experiences for everyone: Mario took to Nintendo 3DS to discover new worlds in SUPER MARIO 3D LAND
and race off the start line in Mario Kart 7, while Professor Layton and the Spectres Call, Kirbys Adventure Wii, and Pullblox
completed a year packed with varied and innovative gaming.

11

Company: Nintendo (cont.)

2012- This was a landmark year for Nintendo, seeing the launch of a new home console, Wii U, and also a new handheld system,
Nintendo 3DS XL. The Last Story, an epic RPG from the creator of Final Fantasy, launched on Wii in February. The first European
Nintendo Direct was also broadcast, connecting Nintendo with its fans to deliver news directly. In March, Mario Party 9 and
PokPark 2: Wonders Beyond entertained Wii owners, while Pit burst back into the limelight on Nintendo 3DS in Kid Icarus:
Uprising, the first title in the Kid Icarus series in over 20 years. Nintendo 3DS XL, a new handheld system featuring the largest
screens yet found in a Nintendo portable console, was released in July. The summer also saw varied titles launch in succession:
the zany music action of Beat the Beat: Rhythm Paradise on Wii, the strategic Pokmon Conquest, and New Art Academy, which
continued to teach players a range of artistic skills. August rounded out with the launch of New Super Mario Bros. 2, which
challenged players to reach a whopping one million gold coins. October saw the launch of some fan-favourite portable offerings as
Pokmon White Version 2 and Pokmon Black Version 2 arrived on Nintendo DS, while the puzzle professor returned in Professor
Layton and the Miracle Mask on Nintendo 3DS. November 2012 heralded the launch of a new Nintendo home console: Wii U.
Nintendos first high definition home console boasted dual screen gaming thanks to the Wii U GamePads built-in screen, which
opened up new gameplay possibilities and ways to interact in the home. Wii U was backed up by a strong software line-up at
launch, including New Super Mario Bros. U and Nintendo Land, introducing new ways for friends and families to play together.

2013- March, Luigis Mansion 2, a sequel to the original Nintendo GameCube launch title, was launched for Nintendo 3DS as part
of The Year of Luigi, celebrating 30 years of Marios younger brother. Nintendo also worked with TT Games to release two
exclusive LEGO titles: LEGO CITY Undercover on Wii U, and prequel LEGO CITY Undercover: The Chase Begins on Nintendo
3DS. In April, strategy came to Nintendo 3DS in the form of Fire Emblem: Awakening, and the portable console also received a
double dose of Donkey Kong in May as Donkey Kong Country Returns 3D launched alongside Nintendo eShop title Mario and
Donkey Kong: Minis on the Move. Animal Crossing: New Leaf arrived on Nintendo 3DS in June, giving players the chance to live
life at their own pace as mayor of a town populated by quirky animals, while The Year of Luigi continued in full force in July with the
release of Mario & Luigi: Dream Team Bros. on Nintendo 3DS and New Super Luigi U on Wii U. The eagerly-anticipated Pikmin 3,
the first wholly original entry in the real-time strategy series in nearly ten years, also arrived on Wii U in July. In August, Nintendo
released Wii U mass-action game The Wonderful 101 in collaboration with PlatinumGames Inc., and October brought experiences
both new and nostalgic. On Wii U, The Legend of Zelda: The Wind Waker HD was released, a high definition remaster of the 2003
Nintendo GameCube classic. This was followed up by an exclusive title in the Sonic the Hedgehog series, Sonic Lost World, on Wii
U and Nintendo 3DS, while Wii Party U and Wii Karaoke U by JOYSOUND brought a party atmosphere to round off October.
Nintendo 2DS, a handheld with the ability to play all Nintendo 3DS titles in 2D, was introduced in October. It was accompanied by
the launch of the new Pokmon titles, Pokmon X and Pokmon Y, which gave players new Pokmon and new mysteries to
discover in the spectacular Kalos Region. In November, SUPER MARIO 3D WORLD, the first high definition, multiplayer 3D Mario
platform game, was released on Wii U. A trio of sporty titles also arrived to warm players up in the cold winter months: Mario &
Sonic at the Sochi 2014 Olympic Winter Games, Wii Fit U and Wii Sports Club. Nintendo 3DS also ended the year on a high note.
In November, The Legend of Zelda: A Link Between Worlds was launched, while Nintendo released a home version of its Louvre
Museum audio guide on Nintendo eShop, named Nintendo 3DS Guide: Louvre. Finally, the year was topped off with the release of
Bravely Default, a new Square Enix RPG for Nintendo 3DS.

12

Company: Nintendo (cont.)

2014-Mario Party: Island Tours January launch put a portable party in the hands of Nintendo 3DS and 2DS players,
while February showcased the breadth of Nintendos software offerings. There was underwater strategy in Steel Diver:
Sub Wars, over-the-top football action in Inazuma Eleven 3: Team Ogre Attacks!, and the return of a gaming icon in
Donkey Kong Country: Tropical Freeze on Wii U. More of Nintendos big names continued to come out in force, with
Yoshis New Island, Professor Layton vs. Phoenix Wright: Ace Attorney, Mario Golf: World Tour and Kirby: Triple Deluxe
all hitting Nintendo 3DS in the first half of the year. Wii U owners were similarly spoilt for choice, with the launch of
Game Boy Advance games on Wii U Virtual Console in April, and the much-anticipated May release of Mario Kart 8.
The first high-definition entry in the popular kart racing series launched to strong review scores, and sold over 1.2
million copies worldwide in its first weekend. Things continued to heat up in June. Tomodachi Life for Nintendo 3DS
and 2DS gave players a quirky world of Mii characters to enjoy, and Nintendo revealed brand new games and
experiences in its Digital Event at the Electronic Entertainment Expo. Among the announcements was amiibo, a new
range of figures of Nintendo characters that can interact with supported software, such as Super Smash Bros. for Wii
U.

13

Company: Nintendo (cont.)

Financial Data & Annual Report:

Assets (Annual) (JPY) Currency
FISCAL YEAR END
CASH & SHORT TERM INVESTMENTS
CASH
SHORT TERM INVESTMENTS
RECEIVABLES(NET)
TOTAL INVENTORIES
RAW MATERIALS
WORK IN PROCESS
FINISHED GOODS
PROGRESS PAYMENTS & OTHER
OTHER CURRENT ASSETS
CURRENT ASSETS - TOTAL
LONG TERM RECEIVABLES
INVESTMNT IN ASSOCIATED COS
OTHER INVESTMENTS
PROPERTY, PLANT & EQUIP - NET
PROPERTY, PLANT & EQUIP-GROSS
LAND
BUILDINGS
MACHINERY & EQUIPMENT
OTHER PROPERTY, PLANT & EQUIPM
ACCUMULATED DEPRECIATION
ACCUM DEPRECIATION - LAND
ACCUM ATZ-PP&E CAPITAL LEASES
OTHER ASSETS - TOTAL
DEFERRED CHARGES
OTHER TANGIBLE ASSETS
TOTAL INTANGIBLE OT ASSETS-NET
TOTAL ASSETS

03/31/13
03/31/12
03/31/11
903,301,000 958,322,000 1,171,076,000
478,761,000 462,021,000 812,870,000
424,540,000 496,301,000 358,206,000
45,439,000
41,229,000
134,933,000
178,722,000 78,446,000
92,712,000
11,576,000
7,175,000
7,069,000
2,008,000
235,000
438,000
165,137,000 71,034,000
85,205,000
1,000
2,000
0
64,788,000
62,789,000
69,985,000
1,192,250,000 1,140,786,000 1,468,706,000
0
67,835,000
5,300,000
6,000,000
41,799,000
61,205,000
32,228,000
86,152,000
87,856,000
80,864,000
86,152,000
145,741,000 132,441,000
42,001,000
41,374,000
41,606,000
26,351,000
25,739,000
27,124,000
13,363,000
18,233,000
10,638,000
3,000
2,000
2,000
57,885,000
51,577,000
0
0
0
22,152,000
16,069,000
11,482,000
0
0
0
11,289,000
8,363,000
5,943,000
10,863,000
7,706,000
5,539,000
1,410,188,000 1,311,216,000 1,599,280,000

14

Company: Nintendo (cont.)

Liabilities (Annual) (JPY) Currency
FISCAL YEAR END
03/31/13
ACCOUNTS PAYABLE
107,045,000
SHORT TERM DEBT & CURRENT PORT
ACCRUED PAYROLL
2,131,000
INCOME TAXES PAYABLE
OTHER CURRENT LIABILITIES
CURRENT LIABILITIES-TOTAL
LONG TERM DEBT
0
LONG-TERM DEBT EXCL CAP LEASES
CAPITALIZED LEASE OBLIGATIONS 0
PROVSION FOR RISKS & CHARGES 16,593,000
DEFERRED INCOME
0
DEFERRED TAXES
(37,690,000)
DEFERRED TAXES - DEBIT
OTHER LIABILITIES
9,290,000
TOTAL LIABILITIES
182,668,000

03/31/12
86,700,000
75,000
2,565,000
3,563,000
81,661,000
194,475,000
69,000
0
40,000
14,444,000
(57,185,000)
37,690,000
7,425,000
120,191,000

03/31/11
214,646,000
57,000
2,431,000
1,008,000
65,108,000
155,438,000
94,000
29,000
94,000
11,647,000
0
(35,017,000)
57,185,000
7,394,000
317,419,000

187,000
32,301,000
83,736,000
333,301,000
0

35,017,000

15

Company: Nintendo (cont.)

Income Statement (Annual) (JPY) Currency
(000's )
NET SALES OR REVENUES
COST OF GOODS SOLD (EXCL DEP)
DEPRECIATION/DEPLETION/AMORT
GROSS INCOME
SELLING, GENERAL & ADMINISTRAT
OTHER OPERATING EXPENSES
OPERATING EXPENSES - TOTAL
OPERATING INCOME
EXTRAORDINARY CREDIT - PRETAX
EXTRAORDINARY CHARGE - PRETAX
NON-OPERATING INTEREST INCOME
PRETAX EQUITY IN EARNINGS
OTHER INCOME/EXPENSE - NET
EARNINGS BEF INTEREST & TAXES
INTEREST EXPENSE ON DEBT
INTEREST CAPITALIZED
PRETAX INCOME
INCOME TAXES
CURRENT DOMESTIC INCOME TAX
CURRENT FOREIGN INCOME TAX
DEFERRED DOMESTIC INC TAX
DEFERRED FOREIGN INC TAX
INCOME TAX CREDITS
MINORITY INTEREST
EQUITY IN EARNINGS
AFTER TAX OTHER INCOME/EXPENSE
DISCONTINUED OPERATIONS
NET INC BEFORE EXTRA/PFD DIVS
EXTRA ITEMS & GAIN/LOSS SALE O
NET INCOME BEFORE PREFERRED DI
PREFERRED DIVIDEND REQUIREMENT
NET INCOME - BASIC
NET INCOME AVAILABLE TO COMMON

03/31/13
635,422,000
12,637,000
172,186,000

(36,410,000)
3,220,000
5,523,000

68,000
0
(1,000)

7,099,000
0
7,099,000
7,099,000

03/31/12
647,652,000
487,009,000
12,523,000
135,776,000
184,845,000
0
671,832,000
(37,320,000)
2,947,000
0
7,721,000
0
41,357,000
10,197,000
0
0
10,197,000
3,029,000
(215,000)
3,244,000
0
(13,000)
0
0
7,099,000
0
(43,204,000)
0
(43,204,000)
(43,204,000)

03/31/11
1,014,345,000
487,604,000
6,794,000
147,525,000
212,586,000
0
684,972,000
171,076,000
0
322,000
6,870,000
(31,278,000)
0
(60,877,000)
(17,660,000)
(5,141,000)
0
(12,519,000)
0
0
50,000
0
(43,204,000)
0
77,621,000
0
77,621,000
77,621,000

623,889,000
383,662,000
0
843,269,000
0

(49,690,000)
127,934,000
0
127,934,000
50,263,000
41,627,000
8,636,000
-

0
77,621,000
0

16

Company: Nintendo (cont.)

Cash Flow (JPY) Currency
(000's )
03/31/13
03/31/12
NET INCOME/STARTING LINE
10,197,000
DEPRECIATION, DEPLETION & AMOR
DEPRECIATION AND DEPLETION
12,637,000
TOTAL OTHER CASH FLOW
(1,581,000)
FUNDS FROM OPERATIONS
21,253,000
EXTRAORDINARY ITEMS
0
FUNDS-OTHER OPER ACTIVITIES
(61,644,000)
DECREASE/INCREASE RECEIVABLES
DECREASE/INCREASE INVENTORIES
INCREASE/DECREASE ACCT PAYABLE
INCREASE/DECREASE INC TAX PAYA
DECREASE/INCR OTH ASTS/LIABILT NET CASH FLOW-OPERATING ACTIVS
CAPITAL EXPENDITURES
5,788,000
ADDITIONS TO OTHER ASSETS
0
NET ASSETS FROM ACQUISITIONS 0
TOTAL SOURCES 1,919,591,000
1,610,607,000
TOTAL USES
1,919,591,000
1,610,607,000
INCREASE IN INVESTMENTS
1,895,772,000
DECREASE IN INVESTMENTS
1,995,757,000
DISPOSAL OF FIXED ASSETS
65,000
OTHER USE/(SOURCE) - INVESTING 5,158,000
OTHER USES - INVESTING
5,158,000
OTHER SOURCES - INVESTING
0
NET CASH FLOW - INVESTING
(89,104,000)
NET PROCEEDS FROM SALE/ISSUE C
PROCEEDS FROM STOCK OPTIONS 0
OTHER PROCEEDS FROM SALE/ISSUA
COM/PFD PURCHASED, RETIRED, CO
LONG TERM BORROWINGS
0
INCREASE/DECREASE IN SHORT TER
REDUCTION IN LONG TERM DEBT
0
CASH DIVIDENDS PAID - TOTAL
12,801,000
COMMON DIVIDENDS (CASH)
12,801,000
PREFERRED DIVIDENDS (CASH)
0
OTHER SOURCE (USE) - FINANCING (72,000)
OTHER SOURCES - FINANCING
0
OTHER USES - FINANCING
72,000
NET CASH FLOW - FINANCING
(12,873,000)
EFFECT OF EXCHANGE ON CASH
26,368,000
INCREASE/DECREASE IN CASH/SHOR

03/31/11
(60,877,000)
12,637,000
12,523,000
(34,394,000)
(82,748,000)
0
(12,207,000)
1,691,000
(83,608,000)
20,738,000
(465,000)
(390,000)
(40,391,000)
19,979,000
0
0
1,132,503,000
1,132,503,000
1,545,194,000
1,406,222,000
170,000
5,611,000
5,611,000
0
164,392,000
0
0
0
0
0
0
39,644,000
39,644,000
0
(179,000)
0
179,000
(39,823,000)
(18,009,000)
62,208,000

127,934,000
12,523,000
6,794,000
(19,277,000)
115,451,000
0
(37,348,000)
85,500,000
9,811,000
(107,128,000)
(2,908,000)
(94,955,000)
10,940,000
0
0

1,018,335,000
875,473,000
536,000
772,000
772,000
0
154,038,000
0
0
0
0
0
0
102,314,000
102,314,000
0
(63,000)
0
63,000
(102,456,000)
(28,576,000)
(317,179,000)

6,794,000

(12,377,000)
20,109,000
(42,172,000)
78,103,000

0
79,000
0

(206,967,000)

17

Company: Nintendo (cont.)

RATIO ANALYSIS
FISCAL YEAR END
03/31/13
QUICK RATIO
CURRENT RATIO
6.13
CASH & EQUIVALENTS % TOTAL CUR 75.76
RECEIVABLES % TOTAL CURRENT AS
INVENTORIES % TOTAL CURRENT AS14.99
ACCOUNTS RECEIVABLES DAYS
24.89
INVENTORIES (DAYS) HELD
Key Personnel:
Satoru Iwata (Rep), President
Shigeru Miyamoto (Rep), Senior Managing Director
Genyo Takeda (Rep), Senior Managing Director
Tatsumi Kimishima, Managing Director

03/31/12
4.88
7.34
84.01
3.81
6.88
49.64
96.37

03/31/11
6.43
4.41
79.74
3.61
6.31
47.81
64.06

3.92

9.19

63.59

18

Company: Nintendo (cont.)

Recent News:
National Post's Financial Post & FP Investing (Canada)
December 9, 2014 Tuesday
Early Edition
Wii U revival boosts Nintendo in holiday season

BYLINE: PAVEL ALPEYEV AND TAKASHI AMANO, The Gazette

SECTION: FINANCIAL POST; Pg. B7
LENGTH: 271 words
DATELINE: TOKYO

Nintendo looks like it's finally going to be able to celebrate this Christmas.
The Japanese game maker that lost 23.2 billion yen ($193 million US) last year is on a surprising comeback with hit game titles such as Super
Smash Bros. and a new line of interactive figurines called Amiibo. At least eight analysts raised profit estimates or ratings since September,
with the two most recent calling for profit to triple. Such results would mark a vindication of sorts for company president Satoru Iwata, who
stuck with a strategy of selling his games only on Nintendo devices rather than offering them on smartphones and tablet computers. With
Super Smash Bros. and Mario Kart 8 gaining popularity, the Kyoto-based company projects it will sell 3.6 million Wii U consoles this year and
take in $1 billion from Amiibo sales in the U.S. alone.
"Nintendo has picked up good momentum heading into the Christmas season," said Tomoaki Kawasaki, a Tokyo-based analyst with Iwai Cosmo
Securities Co., who raised his rating to neutral plus last month. "This time they have a hit lineup. Amiibo represents a new revenue source, and
we are watching it very closely."
When the Wii U was released in November 2012, Nintendo had 23 titles available for the U.S. market. The pace of new software has been slow
since then, and Nintendo now has 53 games available, according to its website, compared with 410 for the predecessor Wii. With the success of
recently released games featuring the plumber Mario and his brother Luigi, analysts expect there to be a flow-on effect to consoles. !
@COPYRIGHT= 2014 Postmedia Network Inc. All rights reserved.
LOAD-DATE: December 9, 2014
LANGUAGE: ENGLISH
DOCUMENT-TYPE: News
PUBLICATION-TYPE: Newspaper
Copyright 2014 National Post
All Rights Reserved

19

Category and Competition

1.
2.
3.
4.
5.
6.
7.
8.
9.

Category: multinational consumer electronics company (video game company)

Size of category: 11 consoles
History of category: 1976-Present
Methods of distribution: Manufactures and sells gaming and home entertainment products. It also manufactures
and markets hardware and software for its home video game systems. Distribution occurs through various retail
outlets both in-store and online.
Major Players:
Square Enix Holdings Co. Ltd.
Namco Ltd.
Sony Corporation
Electronic Arts Inc.
Midway Games Inc.
Hasbro, Inc.
Konami Corporation
Sega Sammy Holdings, Inc.
Microsoft Corporation
Seasonal factors: Profit at Nintendo Co. fell 30 % in the first nine months of the fiscal year as sales of the Wii U
home consoles, 3DS devices and game software dwindled. The popularity of smartphones, tablets and other gadgets
from the holiday season of 2013 to the present has been drawing consumers away from consoles devoted to games.
Nintendo has resisted changing its business to incorporate such devices. "In the fourth quarter, we expect sales to
decrease significantly due to seasonal factors as the year-end sales season concludes," Nintendo said in a statement.

20

Category and Competition (cont.)

Regional factors:
The 3DS will be the first Nintendo handheld product that poses restrctions on all of its games from other regions,
meaning that one can not simply import games from a particular region unless that person has a 3DS from the same
region to play them on.
According to the Nintendo website, the Nintendo eShop for the WiiU is not available in Latin America and the
Caribbean, with the exception of Mexico.
Legal considerations: June 22, 2014-Nintendo lost a lawsuit in the U.K. against Koninklijke Philips last Friday
where the company was found infringing on two of the Dutch technology company's patents with motion technology
used for the Wii and Wii U.
Nintendo should also be wary of their new Amiibo product as it heavily resembles the qualities of Activisions
Skylanders product line.

21

Products Within Category

Share of category by product:

3DS sales in
millions
16
14
12
10
8
6
4
2
0

2010/2011
2011/2012
2012/2013
2013/2014

3DS
sales
in
millions

All-Time Nintendo Console Sales

Wii U
Wii
DSi
DS
GameCube
GameBoy Advance
Virtual Boy
Nintendo 64
Game Boy
Super Nintendo
Nintendo Entertainment System
Total Nintento Console Units Sold
All-Time Nintendo Games Sales
Wii
Wii
DSi
DS
GameCube
GameBoy Advance
Nintendo 64
Game Boy
Super Nintendo
Nintendo Entertainment System
Total Nintendo Video Game Sales

Units Sold
9,680,000
251,570,000
28,430,000
238,000,000
21,740,000
81,510,000
770,000
32,920,000
118,690,000
49,080,000
61,760,000
695,000,000
Units Sold
31,260,000
845,720,000
351,220,000
489,610,000
208,470,000
376,660,000
224,970,000
500,950,000
379,020,000
500,000,000
3,071,000,000

22

Products Within Category

1.
2.
3.
4.

5.
6.

7.

Product-form description:
Nintendo entertainment system-The most notable gaming features of the NES was its horizontal game-pad which replaced
Joysticks and other alternate types of controllers as the de facto design for video game consoles.
Super Nintendo- Gameplay-wise the systems only real innovation was the addition of shoulder-buttons as well as the
cross-formation of its main face-buttons which both would become industry standards in following console generations.
Game Boy- Nintendos second smash hit system. This features an 8 bit CPU like its parent system, the NES, and a blackand-white LCD screen.
Nintendo 64- The system was the first to come standard with an analogue control-stick for playing games, while the
PlayStation and Sega Saturn only came with the standard four-button D-Pad (although both systems had analogue
controllers released later on). Star Fox 64 also introduced the concept of a rumble feature through its Rumble Pak
peripheral, which would shake the controller in accordance to what happened on-screen. The rumble feature would
become a standard feature of all future game controllers.
Virtual Boy- The system was a failed portable video game console released in 1995 by Nintendo. It is noteworthy for being
one of the few failed Nintendo products.
Game Boy Advance-The next in Game Boys evolution. It was a backwards compatible portable system for both the Game
Boy and Game Boy Color. The LCD screen can display more than 32,000 colors, and the updated Game Boy Advance SP
features a rechargeab;e battery and folding case.
GameCube-The system resembled its other major competitors by being a system using optical media for its game.
However, unlike its competitors Nintendo used specifically designed and unique Mini-DVDs. This also resulted with the
requirement to use Memory Cards in order to save game-data (which was not required on the cartridge based N64) but
also was the only console to feature four controller ports (just like the N64). Nintendo also loosened its game-release
policies and was able to gain more third-party support than in the previous console generation.

23

Products Within Category (cont.)

DS and DSi: these were a further evolution of the Game Boy Advance that featured a double touch screen and
backwards compatibility.
Wii-extremely different console compared not only to the Game Cube but other traditional consoles as well.
Released almost two years after Microsofts Xbox 360 and less than a year before Sonys PlayStation 3 the Wii
made its mark quickly due to its unusual motion-sensing technology. Nintendo also opened the market to more
casual gamers, inviting people with no prior experience with video-games with titles focusing on personal fitness as
well as more child oriented titles.
WiiU-Evolution of the Wii that features a touch screen controller.
3DS- evolution of the DS with an additional 3D feature.

New Product Introductions:- New Nintendo 3DS slated for 2015

Benefits and Appeals: Better 3D, bigger memory storage, built-in NFC, bigger screen then even the 3DS XL..
Appeals to eople who may not be satisfied with the size of their regular 3DS or would like to take advantage of the
Amiibo, a product that uses the NFC feature.
New Product Introductions- Nintendo Amiibo
Benefits and Appeals: Uses near field communication (NFC) to interact with supported video game software,
allowing data to be transferred in and out each game and across multiple platforms. Appeals to people who want an
enhanced interactive experience.

24

Brand Analysis
Top brands by dollar or unit sales: (worldwide)

million copies of brand sold

500
450
400
350
300
250
200
150
100
50
0

million copies of
brand sold

25

Products Within Category (cont.)

1.
2.

New Packages and Innovation:

WiiU/3DS console packages with downloadable games inside (top right)
Nintendo 3DS in limited colors such as Sea Green (bottom right)
Recent News about Product Category: Activisions Skylanders franchise has
Released their fourth installment of the Amiibo-like NFC figurines known as
the Trap Team.
Sonys Playstation continues its efforts with the PSVita bundles, a rivaling
console for the Nintendo 3DS. XboxOne also competes with the addition of its
XBoxOne bundles and a unique 1TB game system.

26

Brand Analysis
Top brands by unit sales: Global Hardware by Platform

Platform
1. PS4
2. 3DS
3. XOne

4. PS3
5. WiiU
6. X360
7. PSV
8. Wii
9. PSP
Total

Yearly (change)
11,715,866
(+164%)
6,958,775
(-52%)
6,056,736
(+97%)
3,011,241
(-64%)
2,651,150
(-15%)
2,040,658
(-67%)
1,872,222
(-42%)
532,803
(-73%)
391,786
(-87%)
35,231,237
(-26%)

Total
16,146,005
47,375,564
9,133,686
84,083,250
7,949,941
83,874,040
9,235,237
100,953,839
80,680,020

27

Brand Analysis (cont.)

Growth Trend: Nintendo is a leader in its category within the video game industry. However, the

following share performance graph indicates how their stock has been performing this year in
relation to competitors such as Microsoft and Sony. According to the data the Wii U and the Xbox
One are equally desirable.

28

Brand Analysis (cont.)

Market share : Unfortunately for Nintendo , Sony has the upper hand in this years statistic for market share. Sony
proves to be Nintendos real direct competition.

29

Brand Analysis (cont.)

Growth trends of top software brands::

**In terms of million copies sold opening year.

14
Pokemon
Rumble
Blast

12

10

Pokemon
Black 2
and White
2on
Pokemon
X and Y

8
6
4
2
0
2011 2012 2013

10
9
8
7
6
5
4
3
2
1
0

Super
Mario 3D
Land
New Super
Mario Bros.
2
New Super
Mario Bros.
U
2011 2012 2013

30

Brand Analysis (cont.)

Category share by country and by :region: US, Japan, and Europe

10
9
8

Pokemon US
Mario US
Wii Series US
Pokemon JAP
Mario JAP
Wii Series JAP
Pokemon EUR
Mario EUR
Wii Series EUR

7
6

5
4
3
2
1
0
2011

2012

2013

31

Brand analysis (cont.)

Pricing:

Recent news about competitors: Microsofts XboxOne beat out the

competition for Black Fridays sales with a total share percentage of

31%.

32

Consumer Profile
Demographic users:
5-17 years-old
Family
Nintendos original target customers are males in their

teens to twenties. After Wii, people consider Nintendos

users as cross-gender and of all ages (Byron Acohido,
2006).
Frequency of purchase/usage: Based on primary data,
people most likely use Nintendos products for the
following situations:
1. Get together with friends or family and want to have fun.
2. Feel bored and want to past the time with something
enjoyable.
3. Travel and try to look for something to do on planes, long
car rides (passenger only), or trains.
Place of purchase: Nintendo products can be purchased
at retail stores such as Target, Wal-Mart, Best Buy, Frys,
different Nintendo Outlets and online.

33

Consumer Profile (cont.)

Heavy users: These would include people between the age 5-17 and young adults in

their early to mid 20s.

Awareness and attitudes: Nintendo is known as a classy brand with the goal of
bridging the gap between the older and new generation. It is generally seen as positive
because of such a goal, but at the same time it has experienced some negative light
from a corporate view. This is due to the underperforming of its most recent console
releases of both the 2DS and Wii U.

34

Advertising/Marketing Communications

Nintendos main source of advertising comes from showcases such as E3, TV and Internet (Youtube)

commercials, social media, celebrities, and magazines.

Creative strategy: Nintendo plans to release a monthly line of Amiibo characters from the just released
mega hit Super Smash Bros Wii U and 3DS. By the time all of the Amiibo character figurines come out,
which would be around mid 2015, the new 3DS console that is more Amiibo-friendly than the regular 3DS
XL will already be out.

35

Advertising/Marketing Communications
(cont.)
Past executions: In Summer 2013, Nintendo involved itself in a 3DS product

showcase for the 2013 E3 conference, a video game conference held every year in
California that is an avenue for big video game companies to preview their upcoming
products.
Current: The producer of the NES Remix, Mr. Toyashida, will be hosting the first crossplatform CHAMPIONSHIP MODE Challenge on Miiverse on December 16, 2014. He
asks all of Nintendos Facebook and Twitter followers to post their high scores.
Competitors: In the last year, Sony has spent over $100 million to promote and market
PS4 since its launch. They have hired new advertising agency, Bartle, Bogle, Hegarty
New York, who are known for Googles Chrome and Coca-Cola ads.

36

Media
Category and brand spending: Nintendo spent 57.6 billion yen (about $570 million

US) on advertising in the last nine months. Compared to the last nine months of 2012,
that's 8.5 billion, or about $85 million, more. Bear in mind that was the nine months
Nintendo launched the Wii U. Nintendo forecasts it will spend 78 billion yen, or about
$780 million US, on advertising for the fiscal year, meaning another $200 million US or
so could be spent on advertising stuff like Mario Kart 8 in the span of three months.
Using some data from here and here and some arithmetic, you can see Nintendo
spent 12 billion yen, or about $120 million US, on advertising in the same three
months in 2013.
Seasonality: The most brand spending occurs around Black Friday in Q4 and E3
conference in the summer.
Media employed by top brand: YouTube -Last year, Nintendo asserted that it was
entitled to ad revenue on user-generated YouTube videos that use Nintendo content
"such as images or audio of a certain length." YouTube users who received Content ID
match claims, which notified them that they were using copyrighted material, could
keep their videos live by adding Nintendo advertisements to their videos. Proceeds
from those vides are split between Nintendo and YouTube but not the video's
creator.

37

Promotions
Promotions used n category: TV commercials, Wifi events, live competitions, Twitter, Facebook

and use endorsements.

Major brand promotion types: Demos of upcoming games, using male and female stars to appeal
to all target markets, contests exclusive to certain game titles for certain systems.
Examples:
1. Penelope Cruz in 2012 Nintendo 3DS commercial. She wears a mustache to play Super Mario. The
actress cant take her eyes of the gaming system, but intent of the commercial is for male video
game players cant take their eyes off her.
2. Mike Tyson in 1986 classic boxing game, Punch Out!!(NES).
Success Rates: Nintendo 3DS is currently the #1 handheld system and the reissue of Punch Out!!

for the Wii has sold 1.27 million copies worldwide.

Competitor promotions: Jerry Seinfeld in 2008 Microsoft XBox commercial,
and Harrison Ford in 2011 PS3 commercial.

38

Internet and New Media

With Nintendos website, it will allow their consumer to make many selections

and browse at different consoles and games from wherever they may have
internet access.

39

Internet and New Media (cont.)

Ecommerce activities: The Nintendo eShop on the handheld or

console system will allow consumers to comfortably browse at

different Nintendo products while playing their favorite games.
Social media activities: To build up anticipation Nintendos official
Twitter and Facebook page has posted pictures of the upcoming
upgraded version of the 3DS XL. Nintendo also asks its audience
about possible ideas or fun question that somehow relate to a certain
aspect from a Nintendo product. Example: Based on your most
defining personality trait, what would your Kong name be? Are you
more Funky or Cranky?

40

Internet and New Media

Aside from the website, Nintendo has Twitter, Instagram and Facebook account in

order to can engage with consumers and also keeps the consumers up to date on new
products.
Their online presence is one of their stronger factors as it appeals to a younger
audience, as well as brings in a more carefree and jubilant aspect which isnt really
displayed as well as it should be in different retail outlets.

41

Other Pertinent Information

One of Nintendos main tools for brand resonance is the music while the consumer is

gaming. In an interview with Koji Kondo, composer for the game Mario Maker and
Nintendo's third-person shooter Splatoon, he says the following,
I think a few things have changed quite dramatically. With the advance in
computer technology and hardware evolution, we're seeing a shift from what we maybe
consider very computer-esque music back in the day to being able to use actual
instrumentation and create music that's performed by whole orchestras.
That used to be a solo gig where I'd compose the music and create all the sound effects
that we were going to use. And now we're actually hiring professional musicians, bands,
or orchestras to come in and perform the music. Record and implementing that into the
game, those are the biggest changes that I've seen.

42

Brand Value
Nintendos brand equity has been going up and down through out the year

but overall, the brand value has been going up. Since it is considered a casual
and family-friendly, the price of their items do not seem to be incredibly high
anytime soon which could possibly hurt the brand. The Wii U was even
admitted by Nintendo to be a flop, so brand equity has gone because of that,
but as long as Nintendo remains in style and up to date with the current
gaming landscape, they will have the ability to maintain the price range and
possibly higher the prices in the future.

43

Brand Exploratory
Quantitative Research:

44

(cont.)

45

Brand Exploratory (cont.)

Recommendations (based on primary data):
1. The first recommendation would to build a stronger presence upon the older

generation. This can potentially be fulfilled by the inclusion of more games like
America Test Kitchen, or even the inclusion of more strategy or puzzle games. Many
older people love t play Suduku or crossword puzzles, so maybe they could invest a
little more into this existing market.
2. The second recommendation for Nintendo would be to strengthen its recaptuing of the

core gamers. They have done this with the reintroducing of the classic Kid Iccarus:
Uprising and Duck Hunt Dog brands being included in the newest installment of the
very popular Smash Bros series. For core gamers, there are few games on the Wii
U that can actually appeal this market besides Super Mario Bros. Nintendo should offer
more of these classic games to possibly achieve the goal of recapturing the core
audience from back then.

46

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