1 2 3 4

*Video Removed Due to Upload Size Constraints

#1

*Videos Removed Due to Upload Size Constraints

My Account

My Account

My Account

ActiveGames

1 2 3 4

Mario: The Movie

+

2016 2017 2018 2019 20200

5,000,000,000

10,000,000,000

15,000,000,000

20,000,000,000

25,000,000,000

Projected Profit

Revamped GamingDistributionEntertainmentTotal P

rofit

($)

SWOT Analysis

Sources

Timeline of Implementation

Core Problem

4-Step Plan Xperience Store

Engage Console

Online GameStore

New Mobile Experience

Rebrand

Internal Culture

Nintendo Cloud

Build Nintendo

SDK

Nintendo World

Nintendo Movie

Nintendo Engage

Financials

Nintendo Mobile

Financials

Nintendo Overall Results

Nintendo World

Financials

Nintendo Movie

Financials

Xperience Store

Financials

Game Store Financials

Industry Today

Gaming on Engage

Organizational Structure

2016-20202016 2017 2018 2019 2020

Revenue $6,925,661,582.51$10,195,055,393.5

1$14,550,566,804.4

8$25,537,431,208.8

0$29,479,457,155.7

9

Cost of Sales $5,979,324,866.00 $8,233,168,549.65$11,269,727,617.6

4$18,929,508,430.4

8$21,677,795,257.4

8

SG&A $1,699,646,092.05 $1,665,653,170.21 $1,632,340,106.81 $1,599,693,304.67 $1,567,699,438.58

R&D $778,007,850.40 $816,908,242.92 $857,753,655.06 $900,641,337.81 $945,673,404.71

Change of Total Assets $0.00 $332.03 $342.00 $352.26 $362.82

Taxes $327,288,252.95 $481,791,064.83 $687,620,891.11 $1,206,830,733.15 $1,393,120,341.71

Free Cash Flow-

$1,858,605,478.88-

$1,002,465,966.12 $103,124,191.86 $2,900,757,050.44 $3,895,168,350.49

Free Cash Flow/ Revenue -26.84% -9.83% 0.71% 11.36% 13.21%

Implementation Timeline

2016• New Brand

Introduction• Circulation and

Intrapreneurship Programs Launch

2017 • Release 1st wave of

smartphone games• Launch Nintendo

Engage• Launch Nintendo Cloud

• The Nintendo Movie

2018• Open 3

Xperience Stores• Release Second

Wave of Smartphone Games

2019 • Launch Build

Nintendo• Nintendo World

2020 • Third Wave of

Smartphone Games • Expansion of

Xperience Stores

2011-2015

Nintendo World

Nintendo Movie

Nintendo Xperience Store

Online Gaming Store

Revenue $1,010,000,000

Cost $704,148,022

Profit $305,851,978

Nintendo Cloud

Nintendo EA Sports

Game Popularity

Pokemon X/Y (3DS): 13.1 million sales

New Super Smash Bros: 11.63 million unit sales (3DS+WiiU)

Net: 24.73 million sales

Game Popularity

FIFA 15: 17.65 million unit sales (PS4,XBox1,PS3,XBox360)

Madden NFL 15: 6.15 million unit sales (PS4,XBox1,PS3,XBox360)Net: 23.8 sales

Mobile Revenue Projected:Mobile Market Growth 42%

Expected Yearly growth: 30%2016: $2502017: $324 2018: $422.52019: $549.52020: $714.025

Mobile Revenue

2011: $242 million2012: $284 million (17% growth)2013: $366 million (28% growth)2014: $452 million (23% growth)2015 $524 million (16% growth)

21% Average Growth

Nintendo Mobile Revenue: EA Comparison

Nintendo Engage: The Console of the Future

Virtual Reality Industry

Assumption: Nintendo able to take 1% market share in 2016, 1% growth through 2020(In millions)2016: $1802017: $8102018: $33752019: $96802020: $20250

(In Millions)Industry Net Value as Projected by Forbes2016: $6000 2017: $180002018: $450002019: $880002020: $150,000

Alliance similar to that with DeNA$200 million in shares as well as $200 million investment with Matterport to develop existing AR/VR technology into Engage system

2016: First model of Engage created2017: Worldwide distribution and use

Google Invested $500 million in VR firm Magic Leap in 2014

Matterport has raised $90 million, has VR software. Needs investment to expand production and capabilities.

Nintendo Engage Financials and Explanation

Mobile Gaming Market Share2

Price Annual Revenue2

Nintendo DS / 3DS XL

  

$199.99  

Sony PlayStation Vita

$199.99

Tablets and Cell Phones

94% by 2017 ~$700 without subsidy

22,400,000,000 by 2017

Combined 5% by 2017

Combined $2,400,000 by 2017

Portable Consoles Have No FutureMobile Gaming Market Share

Price Annual Revenue

Nintendo DS/ 3DS XL & Playstation Vita

5% 199.99 $2,400,000 by 2017

Tablets/ cell phones

94% ~700 $22,400,000,000 by 2017

Source: http://fortune.com/2015/01/15/mobile-console-game-revenues-2015/

Strengths Weaknesses

Opportunities Threats

• Renowned quality• Timeless appeal• Strong character

development

• Slow to adapt to industry changes

• Infrequent releases• Stagnant corporate health

• Growing smartphone game segment

• Differentiate with new technology

• Entertainment

• Casual game developers• Weaker appeal to younger

generation

Game Developme

ntPlatform

Technology

Support Systems

Administration

Business

Old vs. New Era Organizational Structure

System Developme

ntNintendo Network ServicesSupport Systems

Entertainment

Business Developme

nt

Game Developme

ntPlatform

Technology

Support Systems

Administration

Business

President Kimishim

a and Executive Board

President IwataAnd

Executive Board

Integrated Research

Development

Administration and Support

Background Problem Recommendation Results

Sources Google Images

http://fortune.com/2015/01/15/mobile-console-game-revenues-2015/

http://www.cnet.com/products/nintendo-3ds-xl/

http://www.nbcnews.com/tech/mobile/rovio-bets-3-d-movie-angry-birds-profits-plummet-n326501

https://mitsloan.mit.edu/LearningEdge/CaseDocs/11-124.Nintendo_Revolution_lamont.FINAL.pdf

http://www.statista.com/statistics/349048/nintendo-ds-software-unit-sales/

http://hubpages.com/games-hobbies/Top-Ten-Best-Selling-Video-Game-Franchises

http://www.statista.com/statistics/217478/digital-revenue-of-ea-since-2011-by-type/

http://www.newzoo.com/insights/global-games-market-will-reach-102-9-billion-2017-2/

vgchartz.com

http://uploadvr.com/vr-ar-investment/

http://www.digi-capital.com/news/2015/04/augmentedvirtual-reality-to-hit-150-billion-disrupting-mobile-by-2020/#.VkwPqIS9ZSU

http://www.orlandosentinel.com/business/os-comcast-earnings-2

0141023-story.html

http://www.economist.com/node/1858939

http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1072&context=gradconf_hospitality

http://www.gurufocus.com/financials/NTDOY.PK

http://www.awn.com/animationworld/merchandising-japan-its-big-rewards-and-competition

http://blogs-images.forbes.com/patrickmoorhead/files/2015/01/microsoft-hololens-lg-1500x1000.jpg

http://www.wired.com/2012/04/100-yen-documentary/

https://hbr.org/1990/11/what-working-for-a-japanese-company-taught-me

http://www.gamespot.com/forums/system-wars-314159282/nintendo-s-corporate-culture-part-of-the-problem-31806640/

http://www.wsj.com/articles/SB10001424052702303973704579352541868849628

http://whatculture.com/gaming/7-problems-nintendo-corporate-level.php/2

http://www.nintendo.co.jp/ir/pdf/2015/annual1503e.pdf

https://www.nintendo.com/corp/annual_report.jsp