Can Nintendo keep it up?

Brand positioning, segmentation and pricing have been core to the success of the Wii. The company managed to differentiate its product from those of its competitors by creating a new console which incorporated new motion sensor technology as well as offering simple ‘casual’ games targeted at the whole family. By doing this, Nintendo has expanded its consumer demographic to include young gamers both male and female, people of all age groups and families and non-family groups.

The company’s main competitors for the Wii, and soon to be launched Wii U, are the fellow ‘seventh-generation’ game consoles the Xbox 360 and Playstation 3. However, as motion sensing technology is becoming a feature of competitor products with the launch of the ‘Xbox Kinect’ and the ‘Playstation Move’, Nintendo is coming under serious pressure to maintain its competitive edge.

New marketing challenges have emerged as there has been a huge decrease in Wii sales compared to previous years, which suggests that their product is at the end of its life-cycle. The recently launched Nintendo 3DS portable console has faced serious problems as innovative technology greatly affected the price and consequently the sales of the product. This helps illustrate that what were once core to the Wii’s success have now become credible challenges for the Wii U. The console’s new technology is expected to increase price significantly, while questions over the accessibility of the new console make it clear that new challenges face Nintendo ahead of the launch of their new console.

The major strategic challenges Nintendo Wii must address in order to keep up with competition is to generate solutions to retain its market share while trying to turn customers away from its chief competitors. Innovation must also be taken into account as the games are thought to have a lack of design feature by more mature audiences.

Nintendo must avoid the mistakes made with the Nintendo 3DS as in order for the Wii U to be a success it needs to have a good price plan, a solid launch schedule and a major marketing plan if it is to keep up with Playstation and Xbox.

Posted by Stephanie.

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