1. Innovation and Technology Transfer An analysis of the Nintendo Michael Yip my2e09 Connor McCabe cm7e09 Aristea-Maria Zafeiropoulouaz4g09

2. Overview Market analysis Technological analysis Intellectual Property Evaluation Conclusion

3. Market Analysis

4. History & Gaming Market 2006 Nintendo is a major player in the game industry Nintendo DS outselling PSP in 2006 Tremendous expectation on 7th generation gaming – high performance, stunning graphics MS Xbox 360 released in November 2005 Sony PS2 outsold Xbox 360 in 2006

5. Social &leisure gamers enjoy simple, non-competitive games Also enjoy gaming with friends and other online players Dormant gamers enjoy gaming with friends and family Together accounts for 53% of the US market Highlights the importance of social interaction

6. Nintendo’s strategy Invited mums to give opinion on what makes them want to buy the product for their children Wii can play all Nintendo made games (multiple consoles in home makes mess – mums unhappy) Wireless (wires makes mess – mums unhappy) Less power – less noisy (noise makes mums unhappy), can be on for 24 hours Opted to create unique game interface and cheap console (designed to sell for 25,000 yen – USD 211)

7. Technology Analysis

8. Xbox 360 - £210-280 First to market Good graphics Expensive but popular online service: Xbox Live Prone to overheating and needing repair PS3 - £425 Last to market Integrated BluRay player Free online service: PSN Dual Shock 3 controller regressed and lost rumble facility – less interactive Most impressive graphics Bulky takes up a lot of space Wii- £179 Low priced Wireless remotes Motion sensing controllers Free online service: Nintendo Network Service Least impressive graphics Wifi enabled

10. 1st best selling console game in history

11. 26.71 million sales

12. 2nd best selling console game

13. 22.56 million sales

14. 1st best selling bundled game in history

16. Less powerful than competitors’ hardware

17. Last console was not successful

19. Wireless remote reduces mess of cables

20. Low priced console

21. Environmentally friendly

22. Nintendo owns large back catalogue of games

24. Competitors rival products already on the market

25. Competitors willing to capture market share by being loss leaders

27. Wii Network service allows Nintendo to cheaply exploit its games back catalogue

28. Existing gamers bored with current systems and games and looking for new experiences

30. Patents Wii Light Gun Nunchuk

31. Patents

32. IP Protection Legal Issues? Interlink Electronics (2006) Green Welling (2006) Anascape Ltd. (2006) Lonestar Inventions LP (2007) Hillcrest Labs (2008) Trademarks Nintendo® Wii™ Wii Remote™ (initially was rejected) Nunchuck™ Copyright All the games

33. Evaluation

34. Units sold (millions)

35. Units sold (millions)

36. Units sold (millions)

38. Conclusion Competitors response: initially to denounce Wii and its controller system as a novelty toy. Recently both have announced similar wireless ways of interacting with games as Wii does. Microsoft project’s Natal, and Playstation Move.

39. Questions?