How Nintendo Found Long Term Success

While Nintendo has been around for 120 years, they didn't become involve with the video game industry until the last 25. They chose to do business in a highly competitive and volatile market where one bad cycle could spell doom to a console manufacture. So how did Nintendo managed not only to survive but strive after all these years? Here are a few contributing factors that led to the long term success of Nintendo in the video game industry.

History
Nintendo has a more celebrated history in the video game history than any other company in the same field. They alone were responsible for reviving the flailing industry after it had crashed. Nintendo also produced some of the most popular video game systems of all time, from the NES and Game Boy to the Nintendo Wii and Nintendo DS. No other video game company can match Nintendo's achievement. For that reason, they were able to be successful long term whereas many have faltered throughout the years.

Profit-Based Business Practices
Nintendo is also a great business company in addition to being a video game giant. They sell their systems for profit. Usually, console manufactures sell their systems for a loss in order to build up an install base. Since Nintendo already has a loyal fan base, they didn't need to release a system that would hurt them financially. So, even if their video game system sells badly (like in the case with the Nintendo Gamecube), Nintendo is still making big profits. They thus were able to strive long term.

Key Franchises
Of course, Nintendo would be in bad shape long term if they haven't got any popular video games. Fortunately for them, they have some of the more recognizable series in the gaming industry: Mario, Zelda, Pokemon, Super Smash Bros., Wii Sports, Wii Fit and many more evergreen series that keep selling and selling. In fact, Nintendo is responsible for many of the best-selling games of all-time. So it should come at no surprise that they were able to strive long-term.

Innovations
While Nintendo managed to become successful throughout the years, they too have some rough patches along the way. The Nintendo Gamecube was by far the worst-selling system made by Nintendo. In order to avoid the downward spiral, Nintendo need to think of something fast to revive their video game business. Their solution was the motion-control equipped Nintendo Wii, which became an instant hit and has been breaking sales records. With the unprecedented success of the Nintendo DS to boot, Nintendo is doing better than ever in their long and illustrious lifespan.