Deconstructing the method to Nintendo's madness

It’s easy to hate on Nintendo. With the Wii U, the company played right into negative consumer expectations by releasing a product derided for its kid-friendly appeal, Fisher-Price toy-like looks, less-than-bleeding-edge silicon, confusing branding and (initially) clunky operating system. The message to the market at the system’s launch seemed clear: The gaming giant had fallen behind the times. But that’s not quite the truth. There’s a well-reasoned and deeply entrenched philosophy behind the often baffling, public-facing decisions Nintendo makes and that’s to deliver high-quality and accessible entertainment experiences on cheap-to-produce (often older), innovative hardware. It’s the Nintendo recipe for success as concocted by the domineering former president Hiroshi Yamauchi. It’s the reason why Nintendo sits on billions of dollars of cash; why its famed first-party studio -- the home of Mario and Zelda creator Shigeru Miyamoto -- is called Entertainment Analysis and Development, or EAD. The company quite literally agonizes over ways to innovate the concept of “fun.”