It has to gall corporate leviathans Microsoft (MSFT) and Sony (SNE) that Nintendo trumps them in the video game console business. The modest Japanese company did it again in the last quarter.
The Japanese manufacturer of Super Mario and Pokemon video games reported Wednesday a 107.27 billion yen ($996 million) profit for April-June, up from 80.25 billion yen the same period the previous year.
According to the AP, "Nintendo sold 5.2 million Wii machines worldwide during the quarter — 1.7 million more machines than for the same period last year." The company’s new Wii Fit exercise game console also sold well.
Nintendo’s success draws on its risky decision to avoid the conventional approach to the gaming business and market a product which is easy to use but lacks many of the complex features of the Sony PS3 and Microsoft Xbox 360 which can do everything from play HD movies to wash lingerie. Hardly anyone needs a machine that can do all of that. But, the multiple functions do add costs. Sony and Microsoft have priced themselves out of some significant part of the market.
The Wii shows the deviant’s advantage. Some people want a Mac over a PC. Nintendo has made its way on its ability to embrace chance to gain popularity
Douglas A. McIntyre
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