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 magazineâ€™s business writer. Surowiecki describes how Sony, with its PlayStation 3, and Microsoft, maker of the Xbox 360, are beating each otherâ€™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 â€œweeâ€), has quietly become the most profitable game console company in Japan.
Nintendo â€œhas not just survived out of the spotlight; it has thrivedâ€, Surowiecki writes. â€œIt 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%. Sonyâ€™s game division, by contrast, barely eked out a profit and Microsoftâ€™s reportedly lost money. Who knew bringing up the rear could be so lucrative?â€
I thought this was a very interesting article about the way certain large mega-corporations go about their business. Great job Nintendo!