Background Guide - JCC CONSOLE WARS 1990 - LANGLEY MUN
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C R I S I S S I M U L A T I O N S J C C C O N S O L E W A R S 1 9 9 0 NINTENDO Background Guide V i r g i n i a I n v i t a t i o n a l M o d e l U n i t e d N a t i o n s C o n f e r e n c e 8 t h Session t h t h M a r c h 1 9 - 2 0 , 2 0 2 1
HOSTED BY LANGLEY HIGH SCHOOL VIMUNC VIII MARCH 19th-20th, 2021 NOTE FROM THE SECRETARY- GENERAL DANIEL KALISH SECRETARY-GENERAL Esteemed Delegates and Sponsors of VIMUNC VIII, When the 2020-2021 Langley MUN Secretariat was elected last March, we had grand plans of innovative committee types and creative crisis arcs for VIMUNC ANAND MENON VIII. We wanted to build on our successful previous year and expand our club to reach new heights. DIRECTOR-GENERAL OF One week later, the pandemic hit, and, well, you know the rest of the story. LOGISTICS The innovative plans we had for VIMUNC seemed in jeopardy. But once the school year started in the fall, an energy all too familiar to our club re-emerged. As the circuit quickly converted to virtual conferences, we were RITVIK CHENNUPATI able to compete at the same exceptional level of competition and diplomacy we have DIRECTOR-GENERAL OF come to expect through the years. Though we had to deal with new issues such as spotty Wi-Fi and maneuvering breakout room unmods, the passion and the energy OPERATIONS were all back, stronger than ever. That’s why, when we started planning VIMUNC VIII, we knew that the ideas and plans for our club and conference that we made before the pandemic could NEIL KOHLI come back into the forefront, and we had a chance to create something truly special this year. With a never-before-attempted committee type in the Joint Specialized CHIEF OF STAFF Committee of Korean Reunification: 2030 and a bold take on a classic favorite in the UNSC: 2080 Committee, VIMUNC VIII promises to do exactly that. ZANE AL-DALLI Whether this is your first or sixth VIMUNC, we hope that this year’s conference will inspire you to do the same. Create something special from the UNDERSECRETARY-GENERAL difficult situations you are put in, and you’ll be rewarded not just with an award, but a new passion, a new energy, a new light. Through all the years of competition and OF GENERAL ASSEMBLIES weekends, all the motions and resolutions, from my first VIMUNC to my sixth, it is AND SPECIALIZED AGENCIES what I’ve realized is truly important, and it is what I hope you take away from our conference. It is my greatest honor to welcome you to VIMUNC VIII. Go forth, conquer, MAXIMO ELLIS learn, and be rewarded with a new passion, a new energy, a new light. UNDERSECRETARY-GENERAL OF CRISIS Sincerely, Daniel Kalish Secretary-General VIMUNC VIII
JCC Console Wars 1990 Nintendo TOPIC A: Ethically Increasing Sales TOPIC B: Patents in Console Development INTRODUCTION to JCC Console Wars 1990: Nintendo The Console War between Nintendo and Sega laid the foundation for the video games we know today; it shifted the gaming industry significantly and helped define the current generation. During the 1980s and 1990s, the war between Sonic against Mario (the speedy hedgehog versus the plumber with the Mushroom Kingdom’s most famous moustache) ignited a crash between the two Japanese gaming companies. The skirmish propelled towards a long-lasting change and impact that is still very prevalent today. Ever since the late 1900s, there has been a history of fierce business and entertainment competition between Sega and Nintendo, thus initiating internal conflicts that took place between Sega of America and Sega of Japan. Filmmakers have uncovered compelling narratives while peeking behind the industry curtains of video games. These documentaries illustrate that video game history is fascinating, and some of the best stories to emerge come from the 1990s. Author Blake J. Harris wrote about 3
the defining conflict of many kids’ childhoods — Nintendo vs. Sega — in “Console Wars,” and with the help of Jonah Tulis, he produced a documentary based on his book. The conflict starts off with an underdog story describing how Sega rose from anonymity and unimportance to challenging the monopoly Nintendo had imposed on the industry. As a result, both the book and documentary focused on how Sega battled Nintendo by changing the culture of gaming. Sega succeeded partly because of its head start with 16-bit technology, but also because it took into consideration what was trendy in gaming and utilized it to their benefits. Sega was able to win over a new generation of gamers with an edgy mascot in Sonic the Hedgehog. Not only was Sega able to win the hearts of young individuals, but its marketing of games, such as the iconic “Sega” scream and the “Welcome to the Next Level” slogan played well with an older audience. The aggressive marketing stance bled into other aspects of the businesses and shaped the Console Wars into a tense rivalry. However, in reality, the Console Wars doesn’t really have a definite resolution or point in which Sega comes out as the winner over Nintendo. Therefore, we will travel back in time and it is up to you on how to shape the Console War and produce an effect for the present and for the future. As technology continues to advance and restructure itself, console gaming industries like Xbox and PlayStation are catching up and capturing the hearts and attention of individuals across the world, while Nintendo and Sega have earned recognition and appreciation during the early days. In order for Nintendo to continue to rise, succeed and dominate the market and gaming forces, it is imperative for delegates to take this into consideration and shape the Console War for the benefit and advantages of Nintendo. Let’s travel back in time and create history. 4
TOPIC A: Ethically Increasing Sales Background Information Nintendo was the market leader during the 1980’s, however, Sega managed to cut Nintendo’s 90 percent market share to about 50 percent. Because of this, Nintendo developed many strategies in order to increase sales. Nintendo started paying companies so that they could own exclusive software and they also planned to release their first ad campaign. Nintendo began manufacturing in China in order to have access to a bigger market and the company ended up paying large sums of money for exclusive software. On the other hand, Sega made alliances with Microsoft which ended up being the cheaper option. Nintendo stayed out of multimedia business whilst Sega started using CD-ROM, virtual reality, and multimedia options, resulting in a huge advantage. As far as marketing goes, soon after the release of the Sega Genesis in 1989 and the Super Nintendo in 1990, both companies began to get heavily competitive with each other as it pertains to conveying to the public that their company had the better product. This can be seen in the advertising that was done by Sega at the time. For example, in a famous Sega Genesis commercial from the 1990’s, Sega claimed that “Genesis does what ‘Nintendon't” to a catchy tune they created. It is important to note that it is stated by 5
Blake Harris, author of “Console Wars: Sega, Nintendo, and the Battle that Defined a Generation” that “Nintendo was more focused on gameplay, game development, and less so on marketing.” In the end, Nintendo ended up selling 49.1 million Super Nintendo consoles, and Sega sold about 29 million Genesis consoles. However, both companies ended up having a tremendous decrease in consolidated net sales. The Nintendo/Sega War highlighted the cultural shifts in the United States and worldwide that occurred throughout the 1990s. With the advent of arcades and electronics becoming more prevalent in the average child’s life than ever before, companies had to adapt and change to fit the burgeoning cultural landscape. But as Harris, and many others argue, the same was just as true the other way around: electronics such as Nintendo and Sega products shaped the reality of a child’s life in this generation. With a chance to re-litigate the war, consider how you, and Nintendo, can reshape the generation once more. Possible Solutions To find possible solutions, consider what marketing strategies are both original and can help increase sales. Additionally, consider how Nintendo’s marketing strategies have helped or weakened them in the past. Nintendo currently uses a pricing strategy, so examine if that has benefited them and how or if it could’ve helped them during these Console Wars. It is also crucial to think about transparency and the types of risks Nintendo is willing to take as a company. Furthermore, consider how Nintendo’s image has changed and what effects it has brought upon sales. Recently, Nintendo has been awarded with having some of the best marketing strategies yet, it’s important to evaluate how those strategies can play into sales and into the Console Wars. 6
Measure how aspects other than marketing have affected sales and how that plays into the company’s success. Consider how changes in accessibility and how changes in price have affected overall sales. Explore your character’s background and research any potential skills or experiences they have had that could strengthen your ability to increase your personal power and the power of Nintendo. And always remember that Sega is never too far behind, so keep a good eye behind you. Questions to Consider • How can Nintendo learn from its past mistakes in order to increase their sales while also having a stable marketing plan? • It could be noted that Nintendo was more focused in solving the present issues instead of thinking about the future, how could Nintendo prepare for future conflicts? • How could Nintendo use Sega’s strengths and weaknesses to their advantage? • How has Nintendo grown in marketing? Could this have been realistic during the Console Wars? Could any of their current marketing strategies have helped them? TOPIC B: Patents in Console Development Background Information 7
A patent’s primary purpose is to preserve and reserve an inventor’s space. In practice, patents block competition for up to decades, allowing the patent holder to earn an extremely large profit while preventing entry by competing firms unless the patent holder grants permission to use the invention. In the early 1990’s, Nintendo was riding a wave of popularity with its Nintendo Entertainment System (NES) console. In order to control its business, Nintendo built a security program directly into its console. Unlicensed competitors which made and sold unauthorized games resulted in copyright scandals, and as a result, Nintendo was able to rely on its patent to maintain control over the NES. Ever since then, Nintendo has become a dominant player in the U.S. Console Market. However, the US International Trade Commission investigated and concluded that Nintendo did not infringe upon the company’s usage of its devices. There are differences between the development of the two consoles, however such a conflict is born through marketing and economic initiatives and motives. It is essential that delegates take into consideration previous conflicts and issues that have occured between Nintendo and other companies besides Sega and how to foster and stimulate a cooperative environment of competitiveness but also a relatively prosperous international economy. Possible Solutions One possible solution is to consider the development of patent specific regulation and guidelines in addition to the ones set currently in Nintendo’s Legal and Privacy Information, to better ensure the transparency that occurs within the gaming industry and to prevent the amount of the possible misconducts that can occur within Nintendo and with other gaming companies such as Sega, Xbox, and Playstation. Taking this framework in mind along with other patent developments and regulations can ensure that Nintendo continues to thrive in a network of fierce 8
competition and rivalry amongst other groups of competitors that have been, and are currently, dominating the gaming industry, sales and marketing income. It is essential to keep in mind that the video game industry is the industry involved in development, marketing, and monetization of video games. It encompasses dozens of job disciplines and functions related to patent construction and generating various business structures. As a result, when delegates devise solutions, it is of utmost importance to take into consideration the roles that video game companies serve in the industry on a local, national, and international level while bearing in mind the specific regulations pertaining to each industry and to those around it. Patent regulations and rules are different depending on country, region and location. Patent developments also usually contain the following criterias and metrics, but are not limited to: relativity to video games, financial value, technological importance, trademarks, designs, and concepts. After the conclusion of the development process and the processing of the patent protection, video game industries sell that game idea while keeping in mind its protected intellectual property and idea. Nintendo needs to work in tandem with the U.S. government if it hopes to maintain a long-term monopoly over the U.S. console market. Do not forgot that other nations have separate patent laws and if Nintendo has any hope of maintaining control over the international console market and truly win the war, it must first win the war on patents. 9
Questions to Consider • How can Nintendo ensure that they develop their consoles effectively and efficiently while following patent guidelines? • How can Nintendo compete alongside Sega especially if they have been behind in the nature of video games? • Contemporary Example: In 2017, iLife managed to secure a $10.1 million judgement against Nintendo in 2017 after the jury found that the Nintendo Wii infringed upon iLife’s 1999 patent. With that in mind, how can Nintendo expect to flourish if they have had potentially multiple court case allegations and have been sued for one of their most popular patents? • What are the current rules and regulations of patents laid out in the gaming industries of various companies and how are they similar or different to one another? What are the qualities that each patent has and how do they ensure privacy and security over their products? DOSSIER 10
1. Hiroshi Yamauchi - President and Chairman of Nintendo 2. Howard Lincoln - Vice President of Nintendo of America 3. Masahiro Sakurai - Creator of Super Smash Bros 4. Shigeru Miyamoto - Nintendo Producer and Game Director 5. Satoru Iwata - Chief executive officer of Nintendo 6. Masaya Nakamura - Creator of Pac-Man 7. Fusajiro Yamauchi - Founder of Nintendo 8. Yuji Naka - Programmer for Sonic 9. Junichi Musuda - Creator of Pokemon 10. Frans van Houten - Chief executive officer of Philips 11
11. Shinya Takahashi - Senior managing executive officer, general manager of Entertainment Planning & Development, and supervisor of Business Development Division and Development Administration & Support Division 12. Ko Shiota - Senior Executive officer, general manager of Platform Technology Development 13. Satoru Shibata - Senior executive officer, general manager of marketing and licensing 14. Satoshi Yamato - Senior executive officer, president of Nintendo Sales 15. Hirokazu Shinshi - Senior executive officer, chief director of manufacturing 16. Yoshiaki Koizumi - Senior executive officer, deputy general manager of Entertainment Planning & Development 17. Takashi Tezuka - Executive officer, senior officer of Entertainment Planning & Development 12
18. Hajime Murakami - Executive officer, general Manager of Finance Administration Division 19. Yusuke Beppu - Executive officer, deputy general manager of Business Development Division 20. Kentaro Yamagishi - Executive officer, chief director of General Affairs 21. Doug Bowser - Executive officer, president and COO of Nintendo of America 22. Stephan Bole - Executive officer, president and COO of Nintendo of Europe 13
BIBLIOGRAPHY Buchanan, Levi. "Genesis vs. SNES: By the Numbers." IGN, 13 July 2016, www.ign.com/articles/2009/03/20/genesis-vs-snes-by-the-numbers. Accessed 2 Feb. 2021. Kelion, Leo. "Sega v Nintendo: Sonic, Mario and the 1990's console war." BBC, 12 May 2014, www.bbc.com/news/technology-27373587. Accessed 2 Feb. 2021. Lyles, Taylor. "Nintendo wins patent fight against company that sued over Switch design." The Verge, 13 Mar. 2020, www.theverge.com/2020/3/13/21177309/nintendo-switch-patent- gamevice-win. Accessed 2 Feb. 2021. Orland, Kyle. "Court reverses $10.1 million judgement against Nintendo in Wii patent case." Arstechnnica, Jan. 2020, arstechnica.com/gaming/2020/01/court-reverses-10-1-million- judgement-against-nintendo-in-wii-patent-case/. Accessed 2 Feb. 2021. Vuria. "Nintendo Patents Point To Tech Behind New NX Device." Globan Patents Solutions, 31 Dec. 2015, www.globalpatentsolutions.com/blog/2015/12/nintendo-patents-point-to-tech- behind-new-nx-device/. Accessed 2 Feb. 2021. 14
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