In the article, “Electronic
Frontiers: Branding the ‘Nintendo Generation,’” Kline describes Nintendo’s
growth in power between 1985 and 1990 in the United States. The company thrived
by created a monopoly of both video gaming hardware and software, all surrounding
the Nintendo brand. The system provided good graphics and color at a modest
price compared to older gaming systems. Although the Atari system had just
failed, the improvements to quality and production lead to Nintendo influencing
the daily life of families forever. Nintendo came to the United States during a
time of video gaming failure, but due to strong communication skills between
the producers and consumers, Nintendo shaped the video gaming industry.
By creating a tight network, Nintendo gained control of
all aspects of production. Not only did the company control both the hardware
(console) and software (game cartridges), but they also prevented any other
companies from taking their business. Nintendo’s president, Hiroshi Yamauchi,
noted how the goal of the company was to have “’one strong company and the rest
weak,’” (Kline, 114). Nintendo had a strict system of licenses that were
necessary in order for other companies to produce games for the system. This
required efficient communication skills between different parts of the company.
By having firm control over all aspects of production, it allowed the company
to prosper economically.
Another important aspect of creating a strong company was
establishing a durable relationship with the consumers. Through different
methods of communication “Nintendo [showed they were] in touch with millions of
its most dedicated customers,” (120). Customer help hotlines, magazines devoted
to the game, and tons of merchandising showed how committed the company was to
making their users pleased. Advertisements were created to target both the
parents and children, by displaying the game in a family-friendly, enjoyable
light. Through close communication with users and effectively using consumers’
feedback when developing new technologies, it led to economic prosperity. The
consumers learned to trust the developers and were bonded to the company in
multiple aspects of their lives.
The success of Nintendo shows the importance of building
a strong relationship between producers and consumers in all aspects of their
lives. During the “Japan Panic” it showed how having distrust between companies
and their customers can lead to a downfall in sales and eventually lead to the
companies fall. Luckily for Nintendo and their strong communication skills,
they were able to work with the feedback being received by customers to save
their business. Rather than continuing to gain control of industry during a
time of distrust of Japanese from Americans, the company worked to create a
strong alliance and collaborative nature to the development of further
innovations.
Overall the development of Nintendo can help future
companies learn how to effectively create a strong network of power. By
building a strong relationship with both the producers and consumers, it helped
build a strong network of power. This shows how as further industries develop
it is important to both listen to feedback and work with others, while being a
strong, independent company that cannot be affected by the downfall of others.
The success of Nintendo should be looked highly upon by further developers of
technology.
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