This week, Nintendo launched its first all-new machine in 5 years, a hand-held player with a 3-D display that doesn’t require the user to wear glasses. The company has dreamed for 15 years of 3-D game systems, but two previous attempts (the Family Computer 3-D System in 1985 the Virtual Boy System in 1993) required glasses or goggles and were both embarrassing flops.
With the game world gravitating towards the use of sophisticated apps on cell phones (LEGO Harry Potter costs $4.99 on an iPhone), The Wall Street Journal (Mar. 2,2011) reports Nintendo is facing the classic product life-cycle curve on its most popular products, its DS and Wii game players.
The DS came out in 2004 and the Wii in 2006. Demand for both peaked in 2009 and sales of games for them are on the decline as well. The goal is for the 3-D player (called the 3DS) to restart the life cycles for both machine and games.
The 3DS is a clamshell device, about the size of a passport when closed and 8/10 of an inch thick. The first units went on sale in Japan this week for $299, with more than 90% of the first 400,000 units shipped to retailers sold in 2 days. It will soon arrive in the US and Europe.
The only catch: Nintendo is warning that children 6 and under should not play the games, as it could have a negative effect on their eyesight development. The 3DS delivers separate images to the left and right eyes. The device is very sophisticated and even includes a 3-D digital camera.
Discussion questions:
1. Why is this project critical to Nintendo?
2. In a SWOT analysis (Ch.2), what are the weaknesses and threats?
3. Do students believe this is the “next wave”?