Aikido

How they do it: When the video console market was dominated by Sony (Playstation) and Microsoft (Xbox), Nintendo introduced the Wii console with totally different attributes and features than the two successful products from Sony and Microsoft. Instead of targeting serious gamers, the Wii targets a broader target group allowing them a more interactive and fun-focused game experience. In addition Nintendo first introduced a wireless controller with a movement detector, creating a totally different product than its competitors.

Digitization

How they do it: Nintendo was one of the pioneers digitizing gaming experience and making multi-player gaming possible on a Nintendo device or TV screen. This allowed the company to introduce a completely new form of gaming experience, vastly different from traditional, offline games.

E-commerce

How they do it: Nintendo sells its game consoles, games as well as accessories via their online store. In addition games can be downloaded directly from the interface of the console only requiring a registered account and an internet connection. This channel allows Nintendo to avoid any distribution or physical production costs.

Lock-in

How they do it: Once a customer owns a Nintendo console, the only games compatible are the ones licensed by Nintendo itself. This means that Nintendo generates additional revenue with every game sold. It is generally not possible to run 3rd party games on the console which are not certified by Nintendo.

Long Tail

How they do it: Nintendo offers a wide variety of games for its game consoles. The games are not necessarily developed from Nintendo itself but all need to be certified by Nintendo to run on the consoles. The large variety of games allow for targeting of different age groups and genres.

Razor And Blade

How they do it: Nintento’s game consoles are the base product for the customer. However the consoles only run Nintendo certified games on it.