Nintendo Case Analysis
Nintendo-The Launch of Game Boy Color
Peter MacDougall, president of Nintendo Canada, was highly anticipating the launch of the Nintendo Game Boy color version across North America and Europe on November 23, 1998. This launch was one of the most significant in Nintendo’s history; sales had declined from 1992-1996, but had finally started to recover in 1997. The responsibility of the Canadian release was paced on MacDougall, and although he planned on utilizing some elements of the U.S. launch he realized that that Canada’s launch strategy must be positioned in a different way. The Canadian market varied in comparison to the U.S. market, and would require a unique, targeted, and specific marketing strategy.
Nintendo led the market in the globally lucrative video game retail industry. Nintendo 64 was released in 1996, and quickly became one of the most sought after products in the market. Sales continued to rise throughout 1997, yet in 1998 Nintendo faced a problem as some third-party game developers shifted their focus towards the Song Playstation. As Nintendo console sales began to wane, an even greater importance was placed on the market for Game Boys. Handheld games were becoming a very significant contributor to profits across U.S. and Canada. Comparatively, the handheld market in Canada was not as strong as the U.S. market. The size of the U.S. led to a more demographically balanced base of users spread apart over the country. This resulted in a larger support group of teens and adults in the U.S. Another factor that played into the situation was that Sony had a more aggressive marketing strategy across Canada, directly competing with Nintendo’s sales. However, Sony’s marketing efforts were significantly lighter in the U.S. The consequence of this was that Nintendo Canada had to allot a larger portion of their budget to focus on the marketing of consoles, rather than Game Boys.
The burden placed upon MacDougall was heavy; how to appropriately segment,
Peter MacDougall, president of Nintendo Canada, was highly anticipating the launch of the Nintendo Game Boy color version across North America and Europe on November 23, 1998. This launch was one of the most significant in Nintendo’s history; sales had declined from 1992-1996, but had finally started to recover in 1997. The responsibility of the Canadian release was paced on MacDougall, and although he planned on utilizing some elements of the U.S. launch he realized that that Canada’s launch strategy must be positioned in a different way. The Canadian market varied in comparison to the U.S. market, and would require a unique, targeted, and specific marketing strategy.
Nintendo led the market in the globally lucrative video game retail industry. Nintendo 64 was released in 1996, and quickly became one of the most sought after products in the market. Sales continued to rise throughout 1997, yet in 1998 Nintendo faced a problem as some third-party game developers shifted their focus towards the Song Playstation. As Nintendo console sales began to wane, an even greater importance was placed on the market for Game Boys. Handheld games were becoming a very significant contributor to profits across U.S. and Canada. Comparatively, the handheld market in Canada was not as strong as the U.S. market. The size of the U.S. led to a more demographically balanced base of users spread apart over the country. This resulted in a larger support group of teens and adults in the U.S. Another factor that played into the situation was that Sony had a more aggressive marketing strategy across Canada, directly competing with Nintendo’s sales. However, Sony’s marketing efforts were significantly lighter in the U.S. The consequence of this was that Nintendo Canada had to allot a larger portion of their budget to focus on the marketing of consoles, rather than Game Boys.
The burden placed upon MacDougall was heavy; how to appropriately segment,