nel in the United States. Genesis owners could play games, obtain game play tips, news, contest, and promotions. Another development is the PICO system. This is a book like toy for children that convert pictures from books onto the television. This was SEGAs first attempt to penetrate the educational market for children. SEGA also offers video game equipment that attaches to exercise equipment. Analysts believe this could eventually be a $2 billion market. SEGA has also employed a pricing strategy that has caught on throughout the industry. This strategy is for systems to have components. The fully loaded Genesis system had three components, the game player, the SEGA CD, and the Genesis 32-X. This got consumers to buy the system in installments. Nintendo Corporate Strategy Vision/Mission The old strategy of slow and steady wins the race has grown obsolete, shown by the recent loss of market share to SEGA. It has become quite clear that in order to be effective in the interactive entertainment industry, Nintendo must adapt its corporate strategy to keep pace with the market. In other words, Nintendo must produce innovative products using the newest technology and expand in new markets, while maintaining the high quality of our products. Strategic Objectives We see the future of Nintendo relying on three key areas: Development, Product Expansion and Marketing Position. Under each of these categories there is potential for tremendous growth. Development is key to Nintendos growth in future. Under this category, Research and development into faster and more efficient machines will provide Nintendo with an edge in the market. This foresight, reflects the strong change in Company philosophy. With our recent release of the N64, we plan to aggressively market and develop this product. Finally, we plan to increase our revenue from internal development to 50%. Within five years, we see Nintendo expanding its product line to embrace not only inter...
