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Nintendo Game Innovation: Wii’s Principles Case Study


Wii is often referred to as an innovative product, which altered the perception of gaming and implied the possibility of being physically involved in the process. Nonetheless, the firm’s positioning in the innovation matrix has to be determined to understand Nintendo’s intentions. Different types of innovation tend to reflect the intensity of changes and the lengths of implementation while having a different impact on the condition of the market.

It could be said that Wii introduced a completely novel concept, which does not comply with the initial settings of the industry and caused disruption to the existent competition. Based on the features related to Wii’s innovation described above, the strategic actions of Nintendo can be characterized by breakthrough innovation due to the compliance with the key descriptor of the principle.

The novelty of Wii’s principles contributes to restructuring and redesigning the current game market while altering the perceptions of gaming and making consoles the memories of the past. In conclusion, the positioning of Wii as a breakthrough innovation is critical and contribute to the understanding of business strategy, revenue-generating mechanism, and value proposition in the subsequent questions.

Despite the operations in the same market, Nintendo, Sony, and Microsoft used different strategies to satisfy the rising wants and demands of their target markets while aiming at the domination of the industry. In this case, it has to be mentioned that Sony’s PlayStation was paying substantial attention to the quality of the image, sound, and speed of the processor to build a perception of one of the leaders of the market in the console segment.

Its emphasis was focused on the previously established sector of players. Meanwhile, Microsoft discovered these features as equally important while being a strong competitor to Sony. In this case, the companies continued the enhancement of the existed technological segment without considering the possibilities for the innovation and R&D concepts to introduce a new model. Sony and Microsoft were ensured that their significant market shares could not be changed dramatically due to the lack of sufficient risk assessment and underestimation of the possibilities of Nintendo’s new product.

In this instance, the introduction of Wii focused on an entirely different value proposition while being able to discover the game market from a dissimilar angle. The company wanted to modify the overall perception of gaming and to escalate its availability to an extended range of users. The company wanted to make the process interactive and involve the user in the process to create an exceptional experience of using the console. In this case, it remains apparent that the proposed value proposition and redesign differentiated the company for the frontrunners of the industry while being the driving force for the company’s shares.

Based on the factors provided above, it could be said that the development and the introduction of a new console were aimed to enlarge the gaming segment by increasing the customer’s base by paying vehement attention to the females and families. Meanwhile, the association of Wii with the interactive and exciting activity with the friendly interface was the primary reason for the increase in the customer’s returns by revolutionizing the perceptions about gaming.

It could be said that Wii was aiming to provide a realistic experience for the users due to the possibility of online integration into the physical game or activity. It could be concluded that the advancement of the value proposition was motivated by the positive influence of the introduced innovation on the brand, upsurge in customer’s returns and satisfaction rates, increase market share, and clear differentiation strategy among the competitors.

A business model determines the key strategies and principles employed by the company to generate a competitive edge. In the context of Wii, Nintendo selected innovation as the primary driver of changes and differentiator from the rivalry. Meanwhile, focusing on the relationships with the customers and a combination of this concept with an innovative solution defined the necessity to prioritize a customer-centered approach.

In this case, the consumers became a centralized element of the buyer-seller relationship, and Wii covered the critical components such as user-friendly interface, association with fun, and involvement in sports activities at home, which helped the company build an exceptional and unforgettable experience for its customers and increase the overall profitability simultaneously.

It could be said that the Wii business model has a substantial correlation with the revenue-generating mechanism due to its ability to surge the efficiency and profitability of the organization. The primary elements were related to augmented customer satisfaction leading to the upsurge in the frequency of return and the free marketing approach related to word-of-mouth. Meanwhile, the overall enlargement of the coverage of the target segment aiming at families and females was an effective boost to the revenue.

It could be said that the compliance of the company’s strategy with the value positioning determined its ability to strengthen its position in the market while becoming a leader among the competitors.

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IvyPanda. (2020, September 29). Nintendo Game Innovation: Wii's Principles. Retrieved from https://ivypanda.com/essays/nintendo-game-innovation-wiis-principles/

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"Nintendo Game Innovation: Wii's Principles." IvyPanda, 29 Sept. 2020, ivypanda.com/essays/nintendo-game-innovation-wiis-principles/.

1. IvyPanda. "Nintendo Game Innovation: Wii's Principles." September 29, 2020. https://ivypanda.com/essays/nintendo-game-innovation-wiis-principles/.


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IvyPanda. "Nintendo Game Innovation: Wii's Principles." September 29, 2020. https://ivypanda.com/essays/nintendo-game-innovation-wiis-principles/.

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IvyPanda. 2020. "Nintendo Game Innovation: Wii's Principles." September 29, 2020. https://ivypanda.com/essays/nintendo-game-innovation-wiis-principles/.

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IvyPanda. (2020) 'Nintendo Game Innovation: Wii's Principles'. 29 September.

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