Sunday, October 11, 2009

Business Marketing: Nintendo's Strategic Alliances with Game Developers.

Part of Nintendo's strategic planning is to have friendly and productive alliances to boost both, their own and their partners sales. By the end of 2002, Nintendo signed separate agreements with Namco and Bandai.
In the first one, Nintendo agreed to promote the games developed by Namco through their (already successful) sales channels for the Game Cube and GameBoy Advance consoles. And Namco would develop games for exclusive use of Nintendo's products, such as, Mr. Driller Drill Land for GameCube. Since then, the two companies develop games together.
In the second agreement, Nintendo took charge of the distribution of games developed by Bandai for the GameCube console. And Bandai started developing games for Nintendo's consoles that featured characters that had been already popular in the competition's consoles.
With these kind of partnerships, Nintendo helped Namco and Bandai reduced, respectively, their promotional and distributional expenses, while strengthening its own success.







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