The Times, Nov 2009
This is a clear example of an unmet need and a looming issue. Power consumption and packaging are moving to the front line. If that reputational dial is going to remain firmly at its current setting, innovation and action, in a direct and tangible way, through the product and in the voice of the brand, is key.
It’s hard to shift the dial on reputation. This is true of the reputation of individual companies, but it is often doubly true of the reputation of an industry as a whole. People tend to trust individual companies and brands, but remain wary of generalizing from that – levels of trust in ‘multinational companies’ are always well below levels of trust in the companies that make up that industry.
This is not to say that an industry’s reputation cannot turn around. It can. In this month’s exclusive survey for The Times conducted by Populus, we have witness a significant shift in consumer confidence in how electronic manufacturers are addressing social and environmental issues. But it requires action, and, importantly, it requires the right kind of action.
‘REPUTATIONAL SHIFT’
So, the fact that 46% of consumers in this month’s survey think that the reputation of the video gaming industry has improved in recent years is striking. Here we have an industry that was definitely cast as the villain. Think back a few years to the headlines filled with shock, horror stories about how video games were making the nation’s children fat, anti-social, reclusive and violent. The customary image was an overweight child alone in his bedroom, eyes glued to a screen 10 inches away from their face, indulging in an orgy of hyper-real violence for hours on end.
Things are different now. And, as the majority of consumers agree, this turnaround can be attributed almost entirely to one company: Nintendo. 46% of consumers surveyed, who thought the reputation of the industry had improved, believe it is responsible for the reputational change, placing it leagues ahead of its closest rivals, Sony and Microsoft, both on 17%.
This offers two important lessons. The first is that just as one company is often responsible for bringing an entire industry down (certain fast food chains come to mind) so one company can bring it back up again.
The second, and more important lesson, can only be learnt by looking at exactly what Nintendo did and how it did it.
As Michael Rawlinson, Director General of the video games industry body ELSPA says, “In the past video games have had a bad press - often by a politicians and other commentators who had never even experienced or played them. But today games are not only a mainstream pastime, they can even play their part in a well-balanced and healthy lifestyle. Today’s games can bring friends and families together, get people active, and even connect gamers from the four corners of the world to play together.”
It’s true. And it is primarily down to the Wii. When Nintendo launched the Wii it proactively took on and actively addressed many of the major issues the industry faced, in the best way possible: through the product. And by taking what was so successful about the product - its ability to appeal to people and get them exited and generate sheer enjoyment - and applying this directly to the problems in hand. Like the best sort of judo move. The Wii actively encourages more interaction with others. The games were designed to tap into existing activities in the real world and appeal to a wide range of users, making them better able to bring all sorts of people together. And, in a stroke of genius, through Wii Fit, Nintendo even made sports and physical activity fun and appealing to exactly the people that probably need the exercise most and were least likely to get it through traditional channels.
As Rita Clifton, the Chairman of Interbrand UK puts it “Nintendo Wii went beyond their traditional marketplace, and revolutionised the sector. The brand brought in a whole new set of gamers – who were many of the people who didn’t approve of traditional gaming”
And of course by expanding the audience, Nintendo also significantly expanded the marketplace -and its business. It has become one the best-selling home games machine of the current generation, and has now topped sales of more than 50 million units since launch. And Wii Fit, the game that probably did the most to turn the reputation around was the third fastest selling video game in history.
Good for the industry’s reputation, good for the business, good for the brand. Almost impossible to imagine any ‘reputation enhancing’ activity sitting at arm’s reach from the core business of the company having anything approaching such an effect.
Of course, it’s not possible to say that’s not it, job done – things don’t stay still for long. The media spotlight roves from issue to issue, and just as one reputational challenge is overcome another one emerges. Dealing with social and environmental issues is just like anything else - you have to watch what’s coming, and ideally try and innovate your way out of it first.
It’s quite clear what’s up next for the video games industry. Social issues may have been taken care of but the environmental issues are about to start. Consumers across all sectors are increasingly interested in the environmental impact of the products that they buy, and this attitudinal shift, which has been about for some time, is beginning to translate into behavioral change now. As we see in this month’s survey, 46% of consumers say they have started looking for more environmentally friendly products in the last year and 58% say they have been choosing products with less packaging. And a full 73% say they don’t usually feel they have enough environmental information to make an informed choice about the products they buy. Top of the list of what information they want? Electricity consumption, at 96%.
‘GREEN REPUTATIONS’
This is a clear example of an unmet need and a looming issue. Power consumption and packaging are moving to the front line. If that reputational dial is going to remain firmly at its current setting, innovation and action, in a direct and tangible way, through the product and in the voice of the brand, is key.
