For those who did not know Nintendo – shame on you. For all twenty something’s it is very easy to explain in one word- Mario. It is the company behind one of the most famous franchises ever created. Although its presence in India is very limited its games have been a hit for generations.
Last year was not a very good year for Nintendo. The company for the first time in years went into a full-year loss. It also had launched its new console Nintendo Wii U which to say politely did not find many takers. People who already had a Wii could not find any huge return on investment by buying this new console.
The launch itself was not as mouthwatering that new people will flock to the console. Most people decided to wait out for the launch of the new PS4 and XBOX (720??).
This year, the company is back to the safe shores of profits again but most of it is because of yen getting weaker. In fact, the company could not meet its goal of 4 million units of Wii U sales. It sold only around 3.4 million units which is not a good sign for the company. (Source)
Now, while Nintendo is around the world and anywhere one can buy its consoles, I find that it has not been aggressive with its marketing in the developing countries. Where I see ads from Sony for its PS3 regularly, I do not remember ever seeing an ad for Nintendo in India.
This is an advantage Microsoft and Sony have over Nintendo in all the developing nations. They are already recognized brands (owing to their other ventures).
This means that people will flock to them more than they will to Nintendo on a normal scenario in these nations. Without any form of branding Nintendo is losing out on a valuable customer base.
For example, in India, gaming is on the rise. Sony and Microsoft recognize this and have been taking advantage of this as well.
On the other hand, Nintendo has been dormant. It could have sold more Wiis if they sold it in India with competitive pricing (the cheaper price would have attracted many buyers).
Right now, it costs same as an XBOX 360, which means that no one would buy it instead of XBOX 360.
Nintendo has created some great products and have changed the gaming industry more than once. If they intend to do it again, they will have to bring new markets into their radar.