The Home Video Game Case Study Example | Topics and Well Written Essays - 500 words

The Home Video Game - Case Study Example Nintendo is a one-century old video game company in Japan. Before diversifying into the video game business, Nintendo had built up a card playing business. Nintendo Company is located in Kyoto and is managed by Yamauchi family. It started diversifying into the video game business in the 1970s. Nintendo acquired a video game technology license from Magnavox. The company introduced a home video game system in Japan in 1977. The game was based on the technology which played a Pong variation. Later, in 1978, Nintendo started selling coin-operated video games. Nintendo encountered the first hit with Donkey Kong, a company designed by Shigeru Miyamoto (Hill 20). Capabilities and competitive advantage that led to Nintendo’s success in the home game industry included the decision of the company’s manager which involved Nintendo developing its own video game machine. The manager pushed the engineers of the company to construct high-quality machines. The machines combined high graphics capabilities and their cost was low. They were sold at a half price less than the competing machines (Hill 20). The designed machines were based on consoles, controllers, and plugs in the cartridge format. The machines were made up of two chips which included an eight-bit processing unit and a graphics processing unit. Each chip performed an essential function. To lower the cost of the machines, the manager avoided using the 16-bit processor that was available at that time. The most important aspect of Nintendo Company’s strategy was the creation of cheap but high-quality games. Another important aspect was creating games with few instructions. The environment of the home video game does not allow for a single company to remain dominant over a long period. This is because success in the industry attracts many competitors.  Ã‚