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Nintendo Wii: Supply Chain Issues That Plagued Nintendo Wii

2464 words - 10 pages

Nintendo Co., Ltd. Is a Japanese, multinational, consumer Electronics Company headquartered in Kyoto, Japan and founded by Fusajiro Yamauchi in September 23, 1889. Nintendo originally manufactured handmade hanafuda cards. After several tried and failed businesses, Nintendo settled with video games in 1963(Wikipedia, n.d). Today, Nintendo is the world leader in the growth, development and the continued improvement of the home leisure electronics and have sold more than a billion video games to the world (Nintendo, 2010). Nintendo designed a revolutionary game console in 2006 called “The Wii”. The Wii was envisioned to expand in to a different market segment of casual gamers and people of different age groups creating a new source of revenue for Nintendo. Nintendo has been known to be the breakthrough leader in the industry since 1980 when they first introduced “The Game & Watch” system. This paper will try to look into supply chain issues that plagued Nintendo Wii supply chain from 2006 until 2009, and briefly discussed the mistakes made during the launching of the Wii by Nintendo, and possible strategies that may help Nintendo stay and keep the top spot as a world leader in the video game industry by outselling competitors.

Video Game Industry

The game industry is a fast paced, ever changing industry competing for the same customers, developers, publisher and suppliers. Nintendo’s competitors in this vast $93 billion industry are Sony PlayStation, Microsoft Xbox, Apple and even Facebook now (Meulen & Rivera, 2013).

After five long years of low sales of the GameCube, Nintendo ended the year 2007 with some amazing numbers and the company was again at the top of the Christmas list in most worldwide households. The early 2006 releasing of Nintendo’s Wii put the company on the top list of most successful selling console systems from 2006 through 2009 and in history as one of the most innovated companies. Nintendo was able to break into a market never touched by any other gaming company in history by capturing a new wave of casual gamers ((Bozon & Thomas, 2007). During these years the world economy saw high unemployment and a broken banking system with many financial companies filing for bankruptcy or simply going out of business. Yet, the sales of the new Nintendo Wii proved to be recession proof business.

Nintendo Wii Revolution

In September 14, 2006, Nintendo announced its release of a new video console with an estimated cost of $250 (Schiesel, 2006). The new console would have Wi-Fi and blue tooth capabilities and wireless controllers. It was sold as a package that came with five different games called Wii Sports that gives gamers the sensation of playing real sports when using the wireless controller (Kinsella, 2011). Soon after the Wii console was launched many retail stores experienced supply shortage and were unable to meet the demand for the new Wii console at retail or online stores.

Supply Chain

As a global industry with...

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