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Day November 16, 2011

5by5 | The Critical Path #13: The Innovation Anomalies

The Innovation Anomalies

Episode #13 • November 16, 2011 at 11:00am

Dan and Horace talk about innovations in emerging economies related to mobile service and how they might foreshadow changes in the developed world. We also discuss why some industries seem to be exempt from disruptive innovation and suggest that there are boundaries societies set to how value can be re-defined.

This show pushes beyond the boundaries of company and industry analysis and touches on the limits or “sound barrier” of innovation itself.

The end of the dedicated portable device

On October 27th, Nintendo published half year results for the fiscal year ending in March 2012. Management stated that the company lost over $900 million with a negative outlook. Nintendo cited weaker than expected sales of Nintendo DS hardware and 3DS software and Yen appreciation as the main reasons for the miss. Is this the end of Nintendo?

Before we look more closely, here is a quick summary: The company is exclusively involved in selling game hardware and software. Their console platform is the Nintendo Wii, which will be followed by the Wii U late in 2012. The Nintendo DS and Nintendo 3DS are the company’s portable game consoles. The Wii and the DS are nearing the end of their product cycles. On the software side, the company is known for gaming titles such as Super Mario and Zelda. Nintendo also pioneered the licensing model to allow third-party developers to produce games for its hardware products.

A closer look