t GRA2406 Production Management Systems 1 By: Thompson Truong Date: 04/08/14 Company Overview • Nintendo is a video game developer, publisher, home console and handheld manufacturer. • Company size 5095 • Nintendo’s Internal Research and Development are divided into 4 divisions. • Demographic includes all age types. Company Overview 5 Headquarters 1.Kyoto, Japan 2.Redmond, Washington 3.Richmond, British Columbia 4.GroBostheim, Germany 5.Scoresby, Victoria, Australia Key Individuals • The founder of Nintendo in 1889. • Born in November 22, 1859 and died in January of 1940 Fusajiro Yamauchi Founder • The third president of Nintendo Co. Ltd., • Served as president for over 50 years and is the last of the Yamauchi family to be president of Nintendo Co. Ltd.. • Under Yamauchi, Nintendo went into toys and the coinop business before entering the home consoles market and revitalizing the video game industry in the US. Hiroshi Yamauchi 3rd president of Nintendo Key Individuals Shigeru Miyamoto • Shigeru Miyamoto is an iconic video game director, producer, artist, designer, and general manager. • He was rated the best video game designer of all time by IGN. • Created the likes of Mario, Zelda Starfox and Donkey Kong. • Gunpei Yokoi was a game designer, he is most recognized for his work that contributed to Nintendo’s success in video games. Gunpei Yokoi • The gameboy, game and watch and the Virtual boy was created by him. As well as a variety of video game series such as Metroid and Kid Icarus. Key Individuals • Satoru Iwata is the current president of Nintendo. He became president in 2002. • Satoru was a game designer that worked at Hal and helped created games such as Kirby's Dream Land. In 1993. Satoru Iwata • He joined Nintendo in December, 2003, as the Executive Vice President of Sales and Marketing, overseeing Canada, North America, and Latin America. • He became the President and Chief Operating Officer of Nintendo of America on May 25, 2006, Reginald "Reggie" Fils-Aime Timeline Nintendo decides to change their business from cards to toys after an unfortunate turn for the card industry. Nintendo’s stocks dropped from 900 yen to 60 yen. Nintendo opens up their first research development branch where they would name games. 1964 September 23 1889 Fusajiro Yamauchi opens a company named Nintendo Koppai. (a Hanafuda card company) Nintendo sets to release the Super Nintendo a system a 32 bit system. 1991 1986 Nintendo releases the Famicom which would be renamed as the Nintendo entertainment system in America and saw huge success. The Gameboy color is released 1998 1996 Nintendo releases the N64 Nintendo releases the Nintendo DS 2004 2001 Nintendo releases the gameboy advance and the gamecube. 2006 The Wii has been released. The 3ds is released 2011 2012 The Wii U has been released sales haven’t been good since. Top Competitors Sony • A multinational conglomerate corporation. Its business is primarily on games, electronics and entertainment. Microsoft • An American multinational corporation, that designs, develops, and sells consumer electronics, computer software and personal computers. Apple • A multinational corporation that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services Blizzard • Video game publisher and developer. Product Specifications Product Specifications Feature Price PlayStation 4 $399.99 [1] Xbox One Wii U $499.99 [2] $349.99 / 299.99 Release Date US: 11.15.2013 EU: 11.29.2013 [3] 11.22.2013 [4] 11.18.2012 Optical Drive Blu-ray/DVD [5] Blu-ray/DVD [6] 25GB Optical Disc (Proprietary) Yes, PS+ subscription not required [7] Yes, with subscription to Xbox Live Gold [8] No RAM 8GB GDDR5 [9] 8GB DDR3 [10] 2GB DDR3 [11] CPU Single-chip x86 AMD "Jaguar" processor, 8 cores [12] 8 Core Microsoft custom CPU [13] Tri-Core PowerPC "Espresso" CPU [14] GPU AMD Radeon Graphics Core Next engine w/ 1152 shaders [15] 853 MHz AMD Radeon GPU w/ 768 shaders[16] AMD "Latte" 550 MHz GPU w/ 320 shaders[17] 1.84 TeraFLOPS/s [18] 1.31 TeraFLOPS/s (estimate)[19] 0.352 TeraFLOPS/s[20] 500 GB 5400 RPM SATA II hard drive [21] 500 GB Hard Drive [22] 8GB or 32GB Flash No [23] Yes, USB [24] Yes, USB Yes, must be at least 160 GB, thinner than 9.5mm [25] No [26] No Cloud Storage Yes [27] Yes [28] No Play As You Download Yes [29] Yes [30] No Remote Download Yes [31] Yes [32] No Account Access from Multiple Consoles Yes [33] Yes No Mandatory Game Installs No [34] Required Internet Connection No [36] Used Game Fee No [39] Game DVR Peak GPU Shader Throughput Storage External Storage Removable Hard Drive Digital game sharing or gifting No Yes [35] No, but required for mandatory day one update. [37][38] No [40] No No No No No Products Research & Development Divisions •Nintendo Entertainment Analysis & Development (EAD) is the main software development division, focuses on internal video game development •Nintendo Software Planning & Development (SPD) focuses overseeing second and third party licensing and development. •Nintendo Integrated Research & Development (IRD) Main hardware development division, focuses on console and handheld development. •Nintendo System Development (SDD) focuses on Nintendo network services and software development kits for consoles. Products Since the original release of the NES. Nintendo has released a total of 6 generations of hardware consoles within the past 3 decades. • • • • • • Systems Include Nintendo Entertainment System (NES) 1986 Super Nintendo Entertainment System (SNES) 1991 Nintendo 64 (N64) 1996 Nintendo Gamecube 2001 Nintendo Wii 2006 Nintendo Wii U 2012 Products Products Cost Cost of development • Manufacture $20 • Retailers $18 • Marketing:$5 • Research and Development $2 Total: $45 Sell For: $90 Profit: $45 SWOT ANALYSIS 2012 Hardware Worldwide Sales 18% 34% Nintendo Ds Nintendo 3DS Wii 48% Revenue STRENGTHS • Nintendo is an established brand and that gives them the advantage. • Highly recognized brand, operating in the video game market since 1977. • Released 4 generations of gaming devices over the past 2 decades. • Diverse geographic presence allows Nintendo to increase its revenues by its global presence. SWOT ANALYSIS Weaknesses • • • • Declining financial performance. Relies on first party titles too much. Behind in technology compared with its competitors. Refuses to make games for rival devices, states that they will make games only for their own devices. SWOT ANALYSIS Opportunities • Growing online game market • Online services can increase revenue • Global gaming industry rapidly growing. • Growing market can provide opportunity to capitalize its position and gain customers. SWOT ANALYSIS Threats • Mobile gaming now poses a big threat as games can easily be downloaded and played on tablets at little or no cost at all. • Piracy, games can be downloaded and played on flashcards or modded systems. • Intense competition with companies such as Sony, Microsoft Blizzard, Apple. • Product life cycles are short. Sources • • • • Wikipedia. Wikimedia Foundation, n.d. Web. 07 Apr. 2014. http://en.wikipedia.org/wiki/Nintendo#Research_.26_Development "Wikia." Nintendo. N.p., n.d. Web. 07 Apr. 2014. http://nintendo.wikia.com/wiki/Category:Nintendo_divisions "PS Vita vs. Nintendo 3DS: How the Specs Compare | Games | Geek.com." Geekcom. N.p., n.d. Web. 07 Apr. 2014. http://www.geek.com/games/ps-vita-vs-nintendo-3ds-how-the-specs-compare-1466871/ "PS4 vs. Xbox One vs. Wii U Comparison Chart." IGN. N.p., n.d. Web. 07 Apr. 2014. http://www.ign.com/wikis/xbox-one/PS4_vs._Xbox_One_vs._Wii_U_Comparison_Chart • Wingfield, Nick. "Nintendo Confronts a Changed Video Game World." The New York Times. The New York Times, 24 Nov. 2012. Web. 07 Apr. 2014. http://www.nytimes.com/2012/11/25/technology/nintendos-wii-u-takes-aim-at-a-changed-video-gameworld.html?_r=0 • Knight, Sophie. "Nintendo Refuses To Make The Radical Change That Could Boost Sales." Business Insider. Business Insider, Inc, 20 Jan. 2014. Web. 07 Apr. 2014. http://www.businessinsider.com/nintendo-refuses-to-make-the-radical-change-that-could-boost-sales-20141 Crews, Veronica. "For The Wii Fit Game." Money 38.9 (2009): 20. Academic Search Complete. Web. 19 May 2014. http://eds.a.ebscohost.com.citytech.ezproxy.cuny.edu:2048/ehost/detail?vid=6&sid=ab387af6-7957-4795aa22775f16c3532a%40sessionmgr4001&hid=4211&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&A N=43743248 •