Blackfriars' Marketing

Monday, September 19, 2005

Why video gamers should pay attention to Nintendo

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I thought this analysis of how Nintendo's strategy fits in the video game market and why its innovations matter was particularly insightful. The best observation: it is much cheaper and more profitable to dominate an emerging gaming category than one that is already mature. Therefore, Nintendo's innovations in new gaming genres and controllers is actually a formula for the largest long-term profits in the industry compared with companies that dominate mature categories. Definitely worth a read, particularly for those interested in the business (as opposed to the technology) of video gaming.