Nintendo: Disruptor Being Disrupted Harvard Case Solution & Analysis

In February 2011, Nintendo released the following development of the DS line of handheld gaming devices in Japan: the Nintendo 3DS. Despite initial rave reviews of the brand new device, sales figures were much lower than anticipated. In July 2011, Nintendo announced that it would reduce the cost of 3DS by 30% to boost sales. For all of the managers of Nintendo, Nintendo president Satoru Iwata declared wages decreases at precisely the same time, beginning with a 50% cut of his own wages.

In October 2011, Nintendo predicted that the net loss for the year will be US$264 million, a first one in around 30 years history of the company. However in the year 2006, Nintendo Wii disrupted the video gaming industry, and in the  subsequent years, Nintendo was interrupted by Microsoft with Kinect and by Sony with PlayStation Move as well as by Apple and Google with their game-altering products targeting the mobile industry. It remained uncertain how Nintendo could turn about and recover the few glorious years after the release of the Nintendo Wii game console and the Nintendo DS handheld game device.

PUBLICATION DATE: October 10, 2012 PRODUCT #: HKU982-PDF-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS

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