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PESTLE Analysis of Nintendo – 2021 | Nintendo PESTLE

 

Nintendo is the biggest multinational video game and electronics firm. It is one of the largest companies in the world. The company was founded in 1889 and headquartered in Kyoto, Japan. Nintendo manufactures electronics products and gaming consoles. Nintendo Wii, Nintendo DS, and Nintendo Switch are some famous units. In this PESTLE analysis of Nintendo or Nintendo PESTLE Analysis, we will discuss the political, economical, social, technological, legal, and environmental factors. These factors define the future standing of the company and improvement chances. This is a great tool to analyze the performance of Nintendo and you can learn the strengths and weaknesses of Nintendo.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Political Factors:

Nintendo is the biggest company in the gaming sector it is a big strength of the company that it doesn’t have any political connections or presence. Moreover, they do not promote the political stance of any political group or party. They also cleared in recent news that their products are only for personal use. Nintendo recently banned the game Animal Crossing: New Horizons due to some political involvement from the users. They also mentioned usage guidelines for organizations and businesses. They implement these guidelines after Biden/Harris campaign. But, the fact is that Nintendo is not involved in any political situation. It is considered as the biggest strength of Nintendo and due to this reason, it is working smoothly without any political influence.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Economic Factors:

If you see the overall performance and working of Nintendo, it is really awesome but the pandemic has hit the company’s standing. They face socioeconomic downturns in 2020 due to COVID-19. As the Coronavirus is still devastating the world, but Nintendo has earned huge profits due to its new consoles. It is a big win for the company to earn profit even in these crises. The main reason behind this gigantic profit is lockdown or isolation. The video game is the only leisure activity for people in this isolation which directly results in the benefit of the company. Video games provide perfect activities that you can play with your loved ones at home. Due to this pandemic, people have turned to video games and other similar activities. This is the major reason that Nintendo has thrived during this tough period.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Social Factors:

Due to the increase in technology and smartphone usage, many people think that the company would boost its mobile game schedule. But, the company has not paid much attention to this factor. It is necessary for Nintendo to refine and encourage the utilization of its internal system because it is a console developer company. They should strengthen their online presence so that they can increase their profitability through E-Shop. Keep in mind that the company is already working in the mobile gaming sector with various games like Mario Kart Tour, Dragalia Lost, and so on.

Recently, Nintendo has proclaimed its run away from the mobile sector. According to marketers, they are not going to manufacture further mobile games in the future. They will experience a huge loss in their profits due to this retreat. Moreover, they are also facing backlash on their video games due to hefty pricing. The counterparts are providing similar games to their user which is another big threat for the company. Nintendo should improve its existing lineup in order to retain its users. They should invest in this sector and consoles manufacturing.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Technological Factors:

Sony and Microsoft are two main manufacturers of consoles but Nintendo has never wanted to contend with console power. They focus mainly on the development of games that can be played on their console and accessible for users. They also partnered with several third-party developers to develop port versions of games. Also, they can also develop games, particularly for the console. A switch is not a high-power unit so it is not portable and powerful.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Legal Factors:

Nintendo has faced several legal issues due to video game privacy and copyright infringement. Many third-party companies have used its console on their computers but Nintendo has sued these developers and companies for millions of dollars on the basis of damage and breaching the company’s security. They also face several problems in video game soundtracks and music libraries. Nintendo also faces several lawsuits over its console. The recent lawsuit they face on Nov 17, 2020.

PESTLE Analysis of Nintendo | Nintendo PESTLE

Environmental Factors:

They face huge scrutiny by several environmentalists over its association with the sourcing of minerals that they use in the manufacturing of its products. These things have improved its product quality that gives them a competitive edge. Greenpeace has declared Nintendo the least eco-friendly console developer. They released a comprehensive report in which they mentioned several factors like climate change, recycling, and toxic chemicals. The environmental policies of Nintendo are not so useful that’s why it is declared as the least environmental-friendly company. The company has a recycling process for users that how they can recycle their video games and other products.

 

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