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NINTENDOS

REVOLUTION:
SYSTEM
THINKING
ANALYSIS

By: Group 2
Abdul Latif
Karina Permata Sari

Background
In late 2004, engineers at Nintendo Corporation were busy developing a
next-generation, nontraditional, video game console, codenamed
Revolution with these considerations:
No other company had ever released such controller (one-handed)
Many of the technologies that were required to make the rod
controlled work such as wireless positioning might never operate
perfectly outside of the lab, in peoples apartments and homes
Any new controller had to be backwards compatible with games made
for older Nintendo

Problem
With Sony and Microsoft leading the charge in the video console space, the
question was whether and how the Revolution could help get Nintendo back
on its fee, with these consideration:
Nintendo needed to convince serious gamers to give the Revolution a
chance
Big gamble with a new controller design with users reaction
The Revolution had to be efficient and easy enough to play so that every
family member can play, even for short time
The requirement of backwards compatibility with the older games, in order
to give an incentive for the existing customer who owned them to upgrade
to the new console.

Variables
Profit
Competitor
New Console
New Game Software & Accessories
New Segment
Sales
Company creates Innovation (Compatibility, One-handled Controller, etc)
New Game Development
New Products (Wii)
R&D
Production Cost
Price
Customer Preference
Marketing Promotion

System Thinking Approach for


Nintendo S New
New Game
S
S
S

R&
D
S
Production
Cost
S

Customer
Preference

Developm
ent

Segment

New Products
(Wii)

Company
creates
Innovation
S

Pric
e

Competit
or

New
Console

Profit

S
Sale
s
S

Marketing
(Promotion)

New
Segment

New Game
Software &
Accessorie
s

Decision and Conclusion


Based on System Thinking, Nintendo have to launch the Revolution (Wii). This is
due to these reasons:
Motion controlled innovation
Game Developer will increase
The controller could be use both as one-handled and two-handled
Have the backward compatibility with previous game console
Nintendo Wii capable to access internet
Literally affordable price console
EPRI (Electric Power Research Institute) Wii System have 6 times electricity
less than PS3 or XBOX

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