Are One

MichaelBeebe

Jandowan Bektas

Drew Meneilly

MicheleParker

Brand InventorySimple

and Sleek

“Bare Bones” Hardware

Power

Mass Market

Price

Innovation (Controller

& Software)

Ads Focus on

Reactions

Expanded Target Market: Everyone (Family Friendly)"We in the industry have a choice to

make, do we want to appeal to the few or to the masses? Do we want to sell to

more people or sell more and more and

more to less people? Do we want to be inclusive or do

we want to be expansive? At

Nintendo we definitely believe in the power

of the expanded audience.”

45% of Users are Female

Common Use in Retirement Homes

Issues to ExplorePotential Problems•Do consumers miss the features they’re accustomed to from other systems?•Is the hardcore demographic Nintendo has built themselves on satisfied with the available games?•How long are consumers being entertained with these simpler games?

Strength of Associations•How strong are the active and exercise associations due to the related software?•How effective are the new ads at positioning the Wii as a social or party system for everyone?

ResearchResearch

* Focus Group and In-depth Interviews* Survey via Catalyst WebQ

103 participants 66 females, and 37 malesAges 17-59

Associative NetworkAction

Sports

Variety

Exercise

Party

Social

UniqueQuality

Fun

Active

Low Price

Hardcore

Problems with PricePricing ProblemsCheapest price was

ranked the

most important to the purchase decision

13% “Too Expensive”

3rd

Problems with Games

• 19% mentioned problems with the games (not complex, not directed at traditional gamers etc.)

Software Problems

“Traditional” Games

“New Experience” Games4.26 5.26

Level of Satisfaction with “Traditional” Games Lower19% Have problems with the

software

“Not complex”

“Not a lot of normal games”

“A lot of the games are too simple”

Favorite Genre for the WiiFavorite GenresSports31%

Party26%

Exercise16%

Other27%

Three RecommendationsRecommendationsDecrease the price point

Leverage Nintendo’s ownership of the

Mariners

Create a game to attract “traditional”

gamers

Price ReductionReduce the Price• Survey indicates that consumers find the

price to be too high

• We researched the price history and production costs of the Wii and competitors

• We gathered data on historical and current demand for the Wii

• We found Nintendo will benefit from dropping the price of the Wii and they can afford to do so

$199.95 MSRP

Survey Results

Cheapest Price

 

2

5

6

4

3

6

7

5

6

1

2

5

6

6

5.01

What is your least favorite thing about the Wii?

The price

It's expensive.

Price

Cost

Mainly the price.

The freakin price

It is expensive

The cost

The price.

It's expensive.

It's expensive.

Price

The price.

Survey Results• On average participants gave

price a 5.01 importance rating on a 7 point Likert scale

• 13 out of 98 respondents said “Price” was their least favorite thing about the Wii

Price History

Price/System 2006 2007 2008

PS3 $499/$599 $399/$499 $399/$499

X-BOX 360 $299/$399/$479 $279/$349/$449 $199/$299/$399

Wii $249 $249 $249

• Both PS3 and X-Box have come down in price several times since their introduction

• Wii’s selling price has not changed since its introduction at $249

Price History

Profit Margins

Cost/Product At Introduction Now

PS3 $840 $400

X-BOX 360 $525 $323

Wii $196 $158

Profit Margins• Wii is the only console to have made a profit right from it’s introduction

• Typical in this industry to take a loss on the console in order to profit from games and accessories

• Production cost of Xbox and PS3 were higher than the sale price until recently

DemandDemand• Changing Supply and Demand will ultimately

force the Nintendo to drop the price of the Wii

• Nintendo has capitalized by keeping the price of the Wii high

• Now Wii’s can easily be purchased in stores

Leveraging the ownership of MarinersLeveraging the M’s

Cost-Effective Promotion

• Free licensing

• Both effective brands with families

Synergy

Target audience for baseball (families) is among the target market of Wii

Target Audience

Free Publicity

Positive Associations

Re-designing the Logo for Baseball promotions

Positive Associations

Ichiro Suzuki – Japanese Baseball Star Ichiro!

• 19% mentioned least favorite thing about the Wii was the lack of complex and “traditional” games

• Wii was rated lower than Xbox 360 on “hardcore” association

• Satisfaction of “traditional” games was only 4.26

• We fear that the Wii (and Nintendo) will begin to lose the “traditional gamer” market

Traditional Gamers

• Needs to be “Family Friendly”

• People like to play sports and exercise on the Wii, but exercise games (Wii Fit) are currently targeted toward 20-30 yr old females

Traditional Gamers

Solution: Wii Martial Arts

• Karate, Kung Fu, and Tae-Kwon Do• Both training and fighting matches• Martial arts still fit with “family friendly”

image– Discipline, humility, restraint, and respect– Use Miis to make it less violent

Solution

Associations AssociationsActive

Social

Exercise

Fun

Competitive

Demonstration

Colors Colors

Black White

Red Gray

Wordmark Wordmark

KarateKarate is a martial art developed in

Japan.

Train in three different styles of martial arts all from your home. Compete in matches with friends and characters in the game to pass each level and receive your next belt

ranking.

Tae-Kwon DoTae-Kwon Do is a

martial art developed in Korea.

Kung FuKung Fu is a martial

art developed in China.

Martial Arts...in your own living room!

Wii Martial Arts Launch Launch Details

Bundled with Wii MotionPlus

MSRP $49.95Release in November to

take advantage of Holiday sales spurt

Demonstrations in malls, various kiosks

Any Questions?

Thank You!