危 wēi  danger

The computer games industry has for many years been a race to better service the needs of the ‘hardcore gamer’, enhanced processor speeds are often cited as the means to this.  But, the investment required to stay at the cutting edge of performance has been huge and has been the downfall of many, notably Sega (now a game developer versus console manufacturer).

机 jī opportunity

Nintendo, instead of fighting this battle for the ‘hardcore gamer’ has spent much of its energies developing offers for the ‘non-consumer’.  It spends much of its effort attempting to grow the ‘size of the pie’ rather than its own slice. For example, Nintendo has developed titles targeted at adults’ health (Wii Fit on the Wii) and improving adults’ cognitive capabilities (Brain Age on the DS).  Doctors have even been known to recommend the latter.  And Nintendo is successfully growing the pie – “While the video game industry grew by $150 million (12 percent) year-on-year, Nintendo’s total sales grew by $300 million in January, offsetting declines on other platforms.”

How about…

• Focusing on growing your market rather than solely your share
• Converting non-consumers rather than fighting for current consumers