How did Nintendo successfully re-created the home video game business following the Atari-era boom and bust? Yamaha was working on a new gaming console (the Family) that would be cheaper, but at the same time having better graphics and faster action than the competition. They started trying to replicate the “feel” of the Nintendo arcade games however on a less powerful version that would be suitable for home use. They also had a security chip included in the system, so only Nintendo approved cartridges work in the system.
Their mission was not to put out a lot of mediocre grossing games, but to put out a few games a year but top quality ones. To name a few, are Super Mario Brothers, The Legend of Zelda, Meteoroid. To uphold with the demands, Nintendo started licensing other companies to develop games for their system. Nintendo made the licensing companies sign an agreement where they limited each company to to a certain numbers of games they can release each year, so they maintain their market share. By also introducing the Family Computer
Communications Network Systems they made Family a very handy machinery to have in every household by granting Family users to monitor and trade stocks by computer, home shopping, on-line banking, reservation services and information about new video games. 2. How did Nintendo capture so much value from home video games? Please answer this question with specific references to customers, suppliers, substitution and complement Customers By not creating a lot of games that aren’t good but rather make few amazing games hat would satisfy the customer’s needs and it’d be an instant hit.
By licensing it to other companies, more good games were coming out which would mean that the customers would have a larger variety of “amazing” games to pick from Launching the Family Computer Communications network system, they attracted more buyer with the addition of monitoring stocks, home shopping, on-line banking, booking tickets, e- mail, and information about new games. By getting big licensing companies on board like Acclaim Entertainment and quite a few more like Roofer Rabbit, Spenserian