In February 2011, Nintendo released the next evolution of the DS line of handheld gaming device in Japan: the Nintendo 3DS. Despite initial rave reviews of the new device, the sales figures were much lower than expected. In July 2011, Nintendo announced that it will reduce the price of the 3DS by 30% in order to increase sales. At the same time, Nintendo President Satoru Iwata said Nintendo pay cuts for all directors, starting with a 50% cut his own salary. In October 2011, Nintendo predicted … Read more »

In February 2011, Nintendo released the next evolution of the DS line of handheld gaming device in Japan: the Nintendo 3DS. Despite initial rave reviews of the new device, the sales figures were much lower than expected. In July 2011, Nintendo announced that it will reduce the price of the 3DS by 30% in order to increase sales. At the same time, Nintendo President Satoru Iwata said Nintendo pay cuts for all directors, starting with a 50% cut his own salary. Predicted in October 2011 that Nintendo’s net loss for the fiscal year ending March 2012 will be U.S. $ 264 million, its first time in its 30-year history. Back in 2006 interrupted the Nintendo Wii, the video game industry, and in the following years, Nintendo has been disturbed by Microsoft Kinect and Sony PlayStation Move as well as Apple and Google with its game-changing products for the wireless industry. It remained unclear how Nintendo could turn around and demand the glorious few years after the release of the Nintendo Wii game console and the Nintendo DS game console.
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from
Ali Farhoomand,
Kau Wong Shiu
Source: University of Hong Kong
17 pages.
Release Date: 10 October 2012. Prod #: HKU982-PDF-ENG
Nintendo: Disruptor disturbed HBR case solution