The paper "The Success of Manchester United Football Club, Nintendo Strategy" is a great example of a management case study. Since the early 1970s, the video game industry has undergone development stages with the recent development having dawned in 2009. The first generation of video games was characterized by machines that had a single game. Pong is an example of a video game that was created by Nolan Bushnell in 1972 which was acquired by Warner Communications Inc. in 1976 under the copyright of Atari (Grant, n.d). The second generation saw the development and launching of the Atari 2600 video games that included Space invaders (1979) and Pacman (1981).
These two games gave Atari an 80 percent share in the video game market in 1982 (Grant, n.d). In 1982, several video game companies such as Mattel with its Intellivision of 1979, Coleco with its Coleco Vision and former Atari employees with their Activision, intensified the competition in the video games industry (Grant, n.d). This competition forced software manufacturers to lower the prices of some games since the market was over flooded with games software.
This second video game developmental stage was known as the 4-bit era that lasted between 1972 and 1985. The third sage was known as the 8-bit era (1985-1986), with Nintendo being the key player in the industry at that time. From 1992-1995, Sega Enterprises Ltd, a Japan industry founded by Americans in 1951, came up with the 16-bit home video system. The 32/64-bit generation was experienced in 1995-1998 with Sony Corporation, Nintendo and Sega being the key competitors in the video game industry. It was during this era that the PlayStation was introduced (Grant, n.d).
Later, the 128-bit era saw the creation of PlayStation 2 in March 2000. Competitive Advantage The three main players in the video game industry are Nintendo, Sony and Microsoft. Nintendo is a Japan card manufacturer that was established in 1889 and entered the video game industry in 1975 (Grant, n.d). Nintendo expanded and established Nintendo of America in 1980 which saw huge sales of video games. Nintendo’ s 8-bit Famicom home video was released in 1983 but was later renamed Nintendo Entertainment System (NES) that was sold in New York.
Grant (n. d) further explains that Nintendo continued expanding worldwide through the development of video games such as the legend of Zelda that sold over a million of copies; Super Mario Brothers that sold over 40 million copies worldwide; and GameBoy which is a portable video game system. To ensure good video game quality and prevent fierce price competition, Nintendo controlled the supply of its game cartridges. All games had a security chip installed so as to ensure that they operate on the Nintendo console. In addition, all games had to be approved by Nintendo before being released whereas the game developers had to follow strict rules when creating the games.
Further, Nintendo had full control of cartridges manufacturing and charged a 20 percent royalty fee and a manufacturing fee of $14 per cartridge to its independent games developers (Grant, n.d). Grant (n. d) also states that those licensed to use Nintendo cartridges were “ limited to develop five NES games a year and could not release an NES game on a competing system for a period of two years. ” Another strategy used by Nintendo to beat its competitors was through lowering the prices of its N-64s software prices so as to attract more game developers and publishers.
Nintendo further came up with a new portable version of its N64 console to counter Sony’ s smaller and portable version of PlayStation (Grant, n.d). In 2001, a new version of the GameBoy was launched in 2001 with the name GameCube which was an internet-ready 128-bit machine.
Davis G.F (2009) The Rise and Fall of Finance and the End of the Society of Organizations.
Grant R.M (n.d) Rivalry in Video Games.
Larson R.C (2008) Starbucks a Strategic Analysis past Decisions and Future Options.
Nanto D.K (2009) The Global Financial Crisis: Analysis and Policy Implications.
Szymanski S (1998).Why is Manchester United So Successful? 9(4).