Innovation and

Technology Transfer

Michael Yip my2e09

Connor McCabe cm7e09
Aristea-Maria Zafeiropoulou az4g09
 Overview
Market analysis
Technological analysis
Intellectual Property
Evaluation
Conclusion
Market Analysis
 History & Gaming Market 2006
Nintendo is a major player in the game
industry
Nintendo DS outselling PSP in 2006
Tremendous expectation on 7th generation
gaming high performance, stunning graphics
MS Xbox 360 released in November 2005
Sony PS2 outsold Xbox 360 in 2006
 Social & leisure gamers enjoy simple, non-competitive games
Also enjoy gaming with friends and other online players
Dormant gamers enjoy gaming with friends and family
Together accounts for 53% of the US market
Highlights the importance of social interaction
 Nintendos strategy
Invited mums to give opinion on what makes
them want to buy the product for their children
Wii can play all Nintendo made games (multiple
consoles in home makes mess mums
unhappy)
Wireless (wires makes mess mums unhappy)
Less power less noisy (noise makes mums
unhappy), can be on for 24 hours
Opted to create unique game interface and
cheap console (designed to sell for 25,000 yen
USD 211)
Technology Analysis
Wii - 179 PS3 - 425 Xbox 360 - 210-280
Low priced Last to market First to market
Wireless remotes Integrated BluRay player Good graphics
Motion sensing controllers Free online service: PSN Expensive but popular online
Free online service: Dual Shock 3 controller regressedservice: Xbox Live
Nintendo Network Service and lost rumble facility less Prone to overheating and
Least impressive graphics interactive needing repair
Wifi enabled Most impressive graphics
Bulky takes up a lot of space
 509.66 million Wii Games sold until Dec. 2009

1st best selling console game in history

26.71 million sales

2nd best selling console game

22.56 million sales

1st best selling bundled game in history

60.69 million sales

Strengths
Patented wireless controller allowed for more
interactive gaming experiences
Wireless remote reduces mess of cables
Low priced console
Environmentally friendly
Nintendo owns large back catalogue of games
Longer history & track record than competitors
Opportunities
Game industry is increasing in size and net
worth
Wii Network service allows Nintendo to
cheaply exploit its games back catalogue
Existing gamers bored with current systems
and games and looking for new experiences
Large part of market is underdeveloped:
families, young children and elderly are not
served by competitors products
Weaknesses
Long production times
Less powerful than competitors hardware
Last console was not successful
Stock shortages
Threats
Game publishers not supporting the new
system and going with competitors instead
Competitors rival products already on the
market
Competitors willing to capture market share
by being loss leaders
Wii technology wasnt as advanced as its
competitors and could become outdated faster.
Intellectual Property
 Patents
Wii Light Gun Nunchuk
Patents
 IP Protection
Legal Issues? Trademarks
Interlink Electronics Nintendo
(2006) Wii
Green Welling (2006) Wii Remote (initially
Anascape Ltd. (2006) was rejected)
Lonestar Inventions LP Nunchuck
(2007) Copyright
Hillcrest Labs (2008) All the games
Evaluation
 Japan Market
12

10
10
9.72
8.68

8
8.17
7.96
Units sold (millions)

7.8

6.91
6 6.43

5.9

4.99
4

3.67

2.95
2
2

1.14

0
Period 2006-2010
 American Market
35

30
32.02

25 25.99

24.42

23.54
Units sold (millions)

20
20.4

15
15.19

13.11

10
10.61

8.85

5
5.46
3.81
2.37
1.25
0
Period 2006-2009
 World Wide Market
80

70

67.45
60

56.14
50 52.62
Units sold (millions)

50.39

40 44.96

34.55
30
29.62

24.45
20

20.13

10 13.17

9.27
5.84
3.19
0
Period 2006-2009
 Worldwide Total Sales
60

50

40
Units sold (millions)

30 X360
Wii
PS3
20

10

0
 Conclusion
Competitors response: initially to denounce Wii and its controller system as a novelty toy.
Recently both have announced similar wireless ways of interacting with games as Wii does.
Microsoft projects Natal, and Playstation Move.
Questions?