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NINTENDO UNVEILS AGGRESSIVE BUSINESS PLAN

 (Repeating from this morning to fix garble)
 NINTENDO UNVEILS AGGRESSIVE BUSINESS PLAN
 Company's Strategies Include Reduced Pricing,
 Creative New Product and Plans for Continued Progress
 LAS VEGAS, Jan. 9 /PRNewswire/ -- Nintendo (R) today announced that the company's 1992 business plan, its most aggressive ever, will focus on pricing, product and progress.
 In a responsive move to its retailers -- many of whom have already experienced tremendous sales successes with different pricing levels -- Nintendo has lowered the suggested retail price of its Super Nintendo Entertainment System (R) (Super NES (tm)) to $179.95 as well as the suggested retail price of the industry's top-selling portable system, Game Boy (R), to $79.95. "It's a simple equation -- combine seven years of experience in this business, with four months of learning in the 16-bit market and a value-driven pricing strategy, and the result is, undoubtedly, continued leadership from Nintendo," said Peter Main, vice president, marketing, Nintendo of America Inc.
 "The economic realities of today's marketplace suggest the need for even greater consumer value, and Nintendo is responding accordingly," Main added. "Now, when it comes to buying a 16-bit system, players will be able to make decisions unclouded by price differences," he said.
 Another advantage to Nintendo's Super NES is the fact that the system comes complete with two controllers, vs. only one packaged with the competing 16-bit system. Eliminating a second controller makes two-player head-to-head game play impossible; thus, when players add this $25 accessory, the two 16-bit systems reach price parity.
 According to Nintendo, even with similar pricing, the Super NES offers players significant advantages, not the least of which is Nintendo's dedication to producing the best, original game titles, as well as accessories which enhance the 16-bit game play experience. Showcasing the strength of its product creativity at the Winter Consumer Electronics Show, Nintendo is already releasing its first accessory for the Super NES, Super Scope 6 (TM) said to be the most advanced infrared device developed for game play. "We're very conscious of packing value into every product we sell," Main explained. "And for Super Scope 6, that means we've created an accessory with strong appeal to our core target and packaged it with six games on one cartridge, all for about the same price as one 16- bit game pak."
 The company also announced that its 100 licensee game developers will be releasing a combined number of more than 120 new titles for all three of its hardware platforms in the first half of 1992 alone.
 The creative power of Nintendo and its third-party licensees will also unleash the power of progress as Nintendo finalizes plans for a January 1993 introduction of its Super NES Compact Disc (CD-ROM) accessory, with pricing set at about one-half the price of planned competing entries.
 "While we look forward to yet another future platform for our developers and players to explore, we remain dedicated to delivering the highest quality product on the market in 1992," Main said. "And sales of our three product lines will result in projected 1992 retail sales of $4.8 billion, up some 39 percent from 1991." Those sales include: 4 million hardware units of the Nintendo Entertainment System (R) (NES (TM)) and 35 million NES game paks, for a total of $1.5 billion; 4 million units of Game Boy hardware and 25 million game paks, for a total of $1 billion; and 6 million Super NES hardware systems and 20 million software cartridges, for a total of $2.3 billion.
 To help achieve these sales goals, in what has been projected to be a continuing volatile economy, Nintendo will commit more than $150 million to marketing support for its three systems, including $60 million in advertising. According to Main, this type of support continues to drive Nintendo's sales successes.
 "We're proud to report that in what was probably the toughest retail environment the country has ever experienced, Nintendo continued to shine, with $3.5 billion in 1991 retail sales." Capturing the lead in the 16-bit market -- even though its Super NES was only on retailers' shelves for four months of the year -- the system sold 2.1 million hardware units and 5.5 million software units; 4 million units of Game Boy hardware and 18 million software units; and 4.5 million units of the NES and 42 million units of software. "Nintendo finished 1991 with a leading marketshare in all categories and an overall marketshare of 79 percent," said Main.
 Nintendo of America Inc. sells personal, home and arcade video games in the United States. The Redmond, Wash.- based company is the headquarters for the company's marketing operations in North America, and is a subsidiary of the world's largest manufacturer and marketer of video games, Nintendo Co. Ltd.
 -0- 1/9/92 R
 /NOTE: Although Nintendo of America Inc. may suggest resale prices for products, the dealer is free to determine on its own the prices at which it will sell the products.
 /CONTACT: Colleen McKenna or Jeffrey Fox of Hill & Knowlton, 213-937-7460, for Nintendo/ CO: Nintendo of America Inc. ST: Nevada IN: CPR SU:


CH-AL -- LA002 -- 8249 01/09/92 13:13 EST
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Publication:PR Newswire
Date:Jan 9, 1992
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