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Nintendo

In: Business and Management

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Case Position Paper- Nintendo
Video Console Rivalry
Patricia A Biever
Lubbock Christian University

Situation Nintendo Co., Ltd. is a multi-national corporation located in Kyoto, Japan. Founded on September 23, 1889 by Fusajiro Yamauchi, it produced handmade hanafuda cards or playing cards of Japanese origin. Nintendo developed into a video game company, becoming what is arguably the most influential in the industry, and Japan's third most valuable listed company, with a market value of over US$85 billion. According to Gruden (2009), “The Nintendo has evolved over the years from the Nintendo Entertainment System, the Nintendo 64, all the way to the Nintendo Wii”. Nintendo of Europe (2010) points out, “Since 1983, Nintendo has sold nearly 2.4 billion video games and more than 420 million hardware units globally, and has created industry icons like Mario™, Donkey Kong®, Metroid®, Zelda™ and Pokémon®”. Nintendo Co. Ltd. headquarters is located in Kyoto Japan. It also has a US base in Redmond, Washington as well as regional offices in a number of other countries throughout the world.
Complication
According to Townes (2011),”The biggest problem with Nintendo is the (relatively) strong yen against the weak dollar and a euro which just broke the Y100 level. Foreign exchange weighs far heavier than any concerns ahead of the Wii U launch, previously over slow post-launch 3DS sales and the price cut to the 3DS, or a lack of games. The average Y/US$ exchange rate in Nintendo's fiscal year ended March 2011, was 85.72; it was as high as 92 in Q1. Compare that to a recent 77, which matches its full year forecast (which was 80 prior to revision when it announced FQ2 results). The yen/euro's average in Nintendo's last fiscal year was 113.12 and was as high as 117 in Q1; compare that to the recent breaking of the 100 level. This may prove problematic since Nintendo's...

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