[Company analysis] Nintendo Co., Ltd. (任天堂)

「Nintendo Co., Ltd. (任天堂)」is a multinational consumer electronics and game development company that mainly manufactures toys and develops game software. Nintendo develops hardware and software for a wide range of age groups and they have world-class brand name. In the game industry, it has the second largest sales volume after 「Sony Corporation」, with 80% of its total sales coming from overseas divisions. The number of consolidated employees is approximately 5,944.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nintendo Co., Ltd.
Company name (Japanese)	任天堂
Date of establishment	Thursday, November 20, 1947
Headquarters location	〒601-8501 京都府京都市南区上鳥羽鉾立町11番地1
Capital	10,065
Consolidated sales	1,200,560
Consolidated operating profit	249,701
Consolidated total assets	1,690,304
Consolidated capital	1,414,798
Capital adequacy ratio	83.7%
Consolidated number of employees	5,944

 

 

 

2. Summary and Features

 
Since the establishment in 1889,「Nintendo」has been engaged in entertainment-related businesses mainly for toys . At that time It was particularly focused on card games, but that was not so successful. After that, this company worked on various fields such as taxi business, love hotel chain business, TV network, and food, but all ended with failure. Immediately after the 1964 Tokyo Olympics, sales of the card business, which was their main business, decreased significantly. And eventaully,「Nintendo」faced a management crisis.

 

However, from this time,「Nintendo」decided to initiate home video game business. In the latter half of the 1970s, they started to manufacture their own game hardware, and in 1983, they released "Family Computer(ファミリーコンピュータ)", which became a mega hit product in worldwide. In this game business,「Nintendo」has created a number of world-famous game characters like "Super Mario Brothers" and "Pokemon". And utilize them in various fields apart from games.

After the success of "Family Computer", they continued to develop various hardwares such as "Super Nintendo", "Nintendo 64", "Game Boy", "Nintendo DS", "Wii", "Nintendo 3DS", and "Nintendo Switch". In the development of game console,「Nintendo」focus on durability and a unit production cost that considers children's users. So, compared to other game consoles, Nintendo's game console tends to be inferior in performance.

In recent years, the game industry tends to concentrate on graphic abilities. However, the main strategy of「Nintendo」is "blue ocean". This company created home gaming market by releasing "Family Computer", and created portable game market by releasing "Game Boy" and recently created new generation of gaming market by releasing "Wii". 

 

 

 

3. Major Business

 

■ Video game business
This company develop both hardware and software.

■ Smart device business
They are expanding into the smartphone-related game business by cooperating with「Dena Co., Ltd.」.

■ QOL business
As a QOL (Quality of Life), they are developing a business on the theme of health through their partner companies.

■ IP related business 

■ Stationery business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		489,095	1,055,682	1,200,560
Consolidated operating profit		29,362	177,557	249,701
Consolidated total assets		1,468,978	1,633,748	1,690,304
Consolidated net assets		1,250,972	1,323,574	1,414,798
Breakdown of sales	Japan	130,014	261,189	265,722
	America	203,954	441,210	528,895
	Europe	129,455	268,900	304,552
	Others	25,671	84,382	101,389