Nintendo

Nintendo is a Japanese company which initially began marketing playing cards during the 1800s. Today, it dominates the dedicated game console market, selling both arcade versions and home versions of its popular programs. In addition, it also has a highly popular portable handheld version of many of its games which eliminates the need for outside video input.

Nintendo faces intense competition from Sega, another dedicated game console company, as well as from microcomputers. Until recently, microcomputers were not powerful enough to run appealing games that could compete with the arcadestyle video games, but that is now changing, and increasing numbers of software manufacturers are writing software for the microcomputer market.

Despite these challenges, Nintendo has been highly successful and carries little or no outstanding debt. This is important because it means that the company has considerable borrowing ability which it could exercise in order to fund additional research and development or other programs in order to enter new markets or better exploit existing markets.

In the future, Nintendo should consider writing for the personal computer market and building up its marketing efforts in this area. However, it is too soon for Nintendo to completely abandon its dedicated game console business, so i

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highly lucrative games. Atari has reentered the video game market, although its market share is far below that of either Nintendo or Sega (Toor 21). Marketing Nintendo and Sega have marketed their consoles throughout the world to both private residences and to the video arcade business. Generally, the versions for the home are based on the arcade versions; both Nintendo and Sega also have handheld versions which do not require additional video inputs. Sega and Nintendo opted not to pursue the microcomputer market but instead sell dedicated game consoles. The only software that can be run on these consoles are the games that are produced for them (either Nintendo or Sega cartridges). Nintendo and Sega both encourage thirdparty development of games, and by producing consoles which do not run additional software, they are spared the problem of producing software for several different platforms. Until recently, this strategy was an attractive one which enabled the companies to actively penetrate the markets in which they participate. However, the introduction of Windows95 has improved game capabilities, and more and more personal computers are now shipping with CD-ROM drives, which are the preferred media for shipping game

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