ANIMAL CROSSING: Vertical Intergration

Question 1

What is vertical intergration?

Answer 1

• Refers to a company’s ownership and control over multiple stages of production and distribution within the same industry.

Question 2

Name 3 ways in which Nintendo has implemented vertical intergration.

Answer 2

1. Hardware and software integration.
2. Digital distribution channels
3. Retail presence

Question 3

Hardware and software integration.

Answer 3

• Nintendo develops both hardware (the switch) and software (inhousegames).
• This tight integration results in unique gaming experiences.

Question 4

Digital distribution channels

Answer 4

• Nintendo has its own online store (Nintendo eSHop) where it sells digital games (to consumers directly)
• This bypasses need for traditional retail stores (maximise profit)

Question 5

Retail presence

Answer 5

• Nintendo operates its own Nintendo stores.
• This forward integration maximises profit and control.