games Japan's electronics multinationals

Games: Nintendo – the winner takes it all

Game industries in total are MUCH bigger than music industries… in Japan game industries are about 10 times bigger business than music industries… Last weekend we had the Tokyo Game Show – read some key points below! From 2006 Japan’s game sector changed dramatically- Nintendo created several paradigm shifts, and “took off”. Read more about Nintendo driven paradigm shifts below. US games giant Electronic Arts (EA) would rank 5th in sales, was EA Japanese. Japan’s games industries are big!

Nintendo income takes off: Nintendo broke the PC-style race for faster machines, and broke out of the limited market of hard core gamers. From FY 2007 Nintendo’s income takes off:

Operating income for Japan's electronics companies
Operating income for Japan’s electronics companies

Nintendo’s DS: braintraining instead of shooting.

SONY’s PSP goes for power, and Nintendo’s DS changed the paradigm + went for lower price. By the way, we see a shift from TV video games to portable and mobile phone games in terms of numbers: for current 7th generation game platforms portables outsell TV video consoles 2:1. DS’s success encouraged Nintendo to develop the Wii.

sales of SONY-PSP vs Nintendo DS in Japan and globally

Avoid the dinosaurs:

global sales of Nintendo Wii, SONY Playstation PS3, and Microsoft Xbox-360

“Too many powerful consoles are like ferocious dinosaurs. They might fight and hasten their own exinction” (Nintendo’s Shigeru Miyamoto in an interview). Nintendo’s Wii has much less power, lower screen resolution, and is much cheaper to make and cheaper to buy than PS3 and Xbox360. Nintendo makes money on every Wii sold.

Sales of Nintendo-Wii vs SONY-PSP vs Microsoft XBOX
Sales of Nintendo-Wii vs SONY-PSP vs Microsoft XBOX

Report: “Nintendo and Japan’s games industries” (9th edition, 181 pages, release October 15, 2008, pdf-file for download):

Eurotechnology report on Nintendo and Japan's game industry
Eurotechnology report on Nintendo and Japan’s game industry

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