Summary
The article in Business Week is good but it is missing one of the key reasons Nintendo is succeeding. The two Key facts that were not mentioned but are primary to Nintendo's success is that they have a plan and they pay attention to player experience rather than technology. These two factors combined with good technology are helping Nintendo penetrate more and more households in spite of a worldwide recession.
Analysis
Planning
Nintendo's success is not by accident but was and is very carefully planned. Evidence of this can be seen in the fact that they have consistently brought new products on the market just when momentum is starting to slow. Software and hardware releases are timed as an overall plan for sustaining sales numbers.
The DSI is just the latest piece to the puzzle. Just when DS sales needed some help to continue to climb the DSI come out. The introduction of Wii Sports Resort and the Wii Motion Plus will give the Wii added momentum going into the critical fall holiday season.
Player Experience
Nintendo is seen an a company of innovation and it is true it does have some of the most innovative game products on the market but the company does not focus on technology as a way to win against its rivals. In fact both Microsoft and Sony have technologically superior systems when it comes to raw processing power. Nintendo's focus is on how can technology be used to improve player experience.
Nintendo's focus on player experience is what leads it to new technology rather than the other way around. For example, the DSI contains two cameras. From a technology standpoint the cameras are not very impressive, however, isn't concerned that they have the best camera, but rather how a camera can be used to give the player a new game experience.
A good example of Nintendo's mindset about player experience can be seen in their attention to simple things like battery life. Battery life on Nintendo hand-held systems is likely one of the main reasons for their success in the market. While other companies have gone for high power, Nintendo understands that no game is fun if it can't be played. A high-powered game system that sucks a battery dry in a few hours isn't fun once the battery is dead. The expense of constantly buying new batteries becomes burdensome and the high-powered system is relegated to a shelf to collect dust. New technology is only good if it improves the total game experience for the player.
While other console game makers have pursued the expensive route of chasing more and more power, Nintendo has instead understood that better technology only is useful, if it can be used to make better games. greater fidelity in graphics doesn't necessarily make a game better.
If Nintendo continues on its current course of carefully planning its product release schedule and focusing on player experience, the company should see continued strong growth through the remainder of this year and well into the future.
