Abstract
In early 2017, Tatsumi Kimishima, the latest CEO of Nintendo Co., Ltd. (Nintendo), felt confident in the company's newest offering: a home/portable console hybrid appropriately named the Switch. But despite conservative yet positive forecasts within the company, there was still uncertainty, as with any innovative product. Nintendo had come a long way since its origins as a playing-card company, but each new hardware generation had introduced unique challenges. This case reflects on Nintendo's history, and that of the entire video game industry. Since its inception in the early 1970s, video game console gaming had grown to an $8.3 billion industry globally. With so much at stake, could Kimishima really “leave luck to heaven,” or was there a more deliberate strategy he and the company could focus on moving forward? Excerpt UVA-S-0302 Rev. Nov. 29, 2018 Switching Things Up at NintendoNintendo's philosophy is never to go the easy path; it's always to challenge ourselves and try to do something new.—Shigeru MiyamotoIn early 2017, Tatsumi Kimishima sat in his office in Kyoto, staring out the window as rain continued to pour. Following the untimely passing of legendary Nintendo Co., Ltd. (Nintendo), CEO Satoru Iwata, Kimishima, the latest CEO, felt confident in the company's newest offering: a home/portable console hybrid appropriately named the Switch. But despite conservative yet positive forecasts within the company, there was still uncertainty, as with any innovative product. Nintendo had come a long way since its origins as a playing-card company, but each new hardware generation had introduced unique challenges. As he turned his attention back to his desk, Kimishima reflected on the company's history and marveled at how much the industry had grown. Since its inception in the early 1970s, video game console gaming had grown to an $ 8.3 billion industry globally. With so much at stake, could Kimishima really “leave luck to heaven,” or was there a more deliberate strategy he and the company could focus on moving forward? Switching Things Up at Nintendo Nintendo's philosophy is never to go the easy path; it's always to challenge ourselves and try to do something new. —Shigeru Miyamoto . . .
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