Hey Console Makers, Does Size Matter?

Nintendo gets a pat on the back for their business methods from this article over at the Econimic Times.

The harm that competitor-oriented objectives can cause the companies that pursue them was the subject of a December 4, 2006, article in The New Yorker by James Surowiecki, the magazine’s business writer. Surowiecki describes how Sony, with its PlayStation 3, and Microsoft, maker of the Xbox 360, are beating each other’s brains out trying to capture the biggest share of the video-game market.

Meanwhile, third-place Nintendo, with its new game console called Wii (pronounced “wee”), has quietly become the most profitable game console company in Japan.

Nintendo “has not just survived out of the spotlight; it has thrived”, Surowiecki writes. “It has $5 billion in the bank from years of solid profits, and this past year, though it has spent heavily on the launch of the Wii, it made close to a billion dollars in profit and saw its stock price rise by 65%. Sony’s game division, by contrast, barely eked out a profit and Microsoft’s reportedly lost money. Who knew bringing up the rear could be so lucrative?”

Article

I thought this was a very interesting article about the way certain large mega-corporations go about their business. Great job Nintendo!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.