Among both the console manufacturers and video game developers in general, Nintendo stands apart. Not just in terms of their games or consoles themselves, although those are certainly a result of the way Nintendo stays askance. But rather Nintendo is just different in terms of the way the business is run; in its decisions and very culture. Sometimes, this sees them make some greatness, such as when they single-handedly pulled the entire video game industry out of the dark ages. Sometimes, this sees them make some really boneheaded decisions, such as when they decided that online gaming was just a passing fad. For like ten years.
But even with all the ups and downs this causes, it makes them a very interesting company. They intrigue the businessman part of me endlessly. Why do they do the things they do, even when it flies against all established knowledge? The fantasizing about that really appeals to the part of my brain that makes my heart skip a beat at the words “Six Sigma”. And you know, it’s been a while since I’ve done any business analysis. I think I might be jonesing.
So anyways, let’s take a look/wildly theorize at the things that make Nintendo the way they are. Now, as we’re doing this, I want to say that a lot of what I’m going to talk about next, particularly about the culture of Japanese companies, comes from things I learned from people who got their chops in the era where all the businessmen were scared Japan was soon going to dominate the world, so that might color my perspective a bit. Also, some of my classes were, like, really boring, so I may only be half-remembering some things. So, you know, don’t put any money on any of this. With that out of way, let’s dive into the business character of Nintendo.
The first thing in understanding what makes Nintendo tick is understanding where they’re coming from. I know this is going to blow you minds here, so hold on to the back of your skulls, but, see, Nintendo is a Japanese Corporation. And I don’t know if you realize this, but Japan has a different culture than we do in the rest.
Sorry, I might be going a little fast there. Go ahead, read that paragraph a few times, until you can wrap your head around those bombs I dropped. When you catch up, we’ll be here for you.
Let’s take a look at what that means. No matter where you are, corporations are publicly owned companies. People buy and sell stock in that company outside the control of the company itself. Stocks represent a portion of the ownership of that company with all that entails, including a share of the highest level decision making and a share of the company’s profits, delivered by means of the stock value increasing or by dividends paid out to shareholders.