Impact_of_Nintendo_on_Disney

Disney’s interactive unit lost $234 million in the most recent fiscal year. Walt Disney Co.’s interactive media unit cut 29 percent of its workers in video- game development for consoles. Disney fired about 200 of the 700 workers who design games for consoles such as Nintendo Co.’s Wii. Disney Interactive Media is estimated to have about 3,000 workers. Nintendo Co., the world’s largest maker of video-game players, reported a steeper profit drop than analysts estimated and cut its sales forecast for the company’s main Wii and DS players as competition intensified according to Businessweek, reported on January 27th 2011. Nintendo is a multinational corporation based in Japan. Nintendo has become one of the most powerful and the third most valuable listed company in Japan. Nintendo has engaged in the globalization processes in terms of locations of its offices and countries where its products are on sale. Nintendo is headquarter is in Kyoto, Japan while its international offices spread over the world including the U.S., Canada, Germany, Australia, PRC, South Korea, Panama, Brazil, Taiwan and South Africa. What’s more, websites in 19 different languages are set up for various regions from Asia, Americas to Europe. Its products are sold in the abovementioned countries by international distributors. Managers and executives in the United States face radical change in response to increased global competition. Economic competition places pressure on all categories of employees to be productive and to add value to the firm. Corporate warfare and competition make employment uncertain for people in companies or industries that pursue cost-cutting strategies to achieve economic success. Corporate competition creates performance and cost pressures, which have a ripple effect on people and their behavior at work. Competition may lead to downsizing and restructuring, but it also provides the opportunity for revitalization. Too much change leads to chaos; too little change leads to stagnation. Winning in a competitive industry can be a temporary victory however; staying ahead of the competition requires constant change. References Pavel Alpeyev (2011). Nintendo Profit Drops 74%, Slashes Wii, DS Forecasts. Retrieved 11 February 2011 from http://www.businessweek.com/news/2011-01-27/nintendo-profit-drops-74-slashes-wii-ds-forecasts.html Andy Fixmer (2011). Disney Is Restructuring Money-Losing Interactive Unit. Retrieved 11 February 2011 from http://www.businessweek.com/news/2011-01-25/disney-is-restructuring-money-losing-interactive-unit.html Nintendo (2011). Corporate Information. Retrieved from http://www.nintendo.com/corp/