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Excerpt from Case Study:

Case Study Nintendo

......Rivalry
Nintendos position relative to that of its competitors is the result of a complex set of factors not entirely detailed in the case study. With its innovation and the low cost of production/low price to consumers, Nintendo appears to be relatively strong, and a strong, broad, and loyal consumer base also assists the company in it competitiveness. Sony and Microsoft, however, Nintendos two major competitors, have many different departments and product offerings unrelated to the video game industry, providing them with more stability and much larger company-wide revenues and levels of operating capital, adding to their relative strength immensely
Issues for Managerial Attention
As the above analysis clearly demonstrates, one of the primary issues of managerial concern for Nintendo in its current state (as described by the case study) iss the increase of Wii production levels to meet demand for the product. A change in pricing (I.e. making the unit more expensive) could also be warranted, which would make an adjustment to the demand curve on its own; the fact that consumers were willing to spend double or even triple the retail cost of a Wii in order to purchase one via Ebay and other online resale sites suggests