Introduction:
Nintendo CompanyLimited, Kyoto, Japan,is regarded as an industrial giant and leader which has various profitable products. In 1997 it was estimated that almost 40% of U.S households, owned a Nintendo gaming system. The gaming consoles of Nintendo are mainly known for their reliability and innovation and these factors are also responsible for the growth in revenue and profits of Nintendo. The games of Nintendo are also recognized by various technological institutions as well as various international magazines. In 1996, Time Magazine named Nintendo 64 as the machine of the year.
Before 1997, Nintendo was enjoying huge amount of sales, but in 1998 the sales of Nintendo started to decline due to its reliance on third-party developers who are now more associated with the Sony Play station because they perceive the Play station as more profitable. The Nintendo Game Boy is very successful in America and also in Canada, however, the profits of Canada were not up to the mark because of two reasons.
Firstly, because of the sheer size of the U.S. gaming market. Nintendo has successfully developed games for different segments of the U.S. market. For example, Nintendo has developed some adult-oriented games for the mature and teenage population. This game was significant and one of the biggest profit generator for Nintendo. The second factor was the increasing competition from Sega in Canadian market. Sega advertised andoperated aggressively in the Canadian market as compared to U.S.market. The change in buying behavior of Canadian and U.S. markets was obvious in the late 1990s.It is estimated that just six percentsales of Nintendo, in Canada, comes from Game Boy software and hardware as opposed to U.S. where the sales from Game Boy hardware and software accounted for almost ten percent.
Answer Number 1:
Canadian Market for Nintendo Game Boy Color:
The Canadian market for Nintendo Game Boy Color is different from the other markets because the Nintendo faces significant competition from other game developers in Canada. The case study scenario suggests that Nintendo faces significant difficulties in selling the game boy in Canada because of various competitive forces, demographical patterns and different buying behaviors of Canadians. Nintendo also admits this situation and offers Nintendo game boy using different marketing tactics.
The original game boy was introduced in Canada in 1989 which proves to be very popular because of the various factors,out of which price proves to be the most significant factor. The market in Canada for Nintendo game boy color appears to be saturated.If Nintendo wants to gain the maximum market share and profits from the Canadian market, Nintendo should have to take into consideration many factors such as price, the features of the game boy color, the distribution and marketing channels, etc.
The competition is severe in the Canadian market; the main competitors of Nintendo in the Canadian market are Sega and Turbo Express, however, the stated competitors are not efficient in the handheld arena and Game Boy outclasses every player on that front...................
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