PRODUCT RECALL What Wrist Straps Used with Controllers

PRODUCT RECALL What: Wrist Straps Used with Controllers for the Nintendo Wii Video Game System [1] Recall Date: December 15, 2006 Why: If consumers swing the hand-held "Wii Remote" game controllers using excessive force and accidentally let go, the cord connecting the controller to the wrist strap can break, potentially causing the controller to strike bystanders or objects. Incidents: Nintendo has received reports of cords on wrist straps breaking, including three reports of minor injuries not requiring medical attention. All of these incidents occurred when consumers were playing the game, "Wii Sports. " Number of Units Sold: ~ 3. 2 million [2] When Sold: November 2006 to December 2006 ETM 591 Jason Coggins Nov. 4, 2010

MANAGEMENT ISSUES Recognition of Problem: The wrist straps were sold along with a new highly anticipated gaming machine which allowed users to manipulate game play using 3 -D space. [5] If consumers swing the hand-held "Wii Remote" game controllers using excessive force and accidentally let go, the cord connecting the controller to the wrist strap can break, potentially causing the controller to strike bystanders or objects. [4] Speed of Response: Nintendo began to receive reports of the broken cords immediately following the release of the new gaming system, including three reports of minor injuries not requiring medical attention. Within one month and 3. 2 million units sold, Nintendo began issuing replacement wrist straps. Responsibility: Nintendo took full responsibility for the wrist strap and immediately announced a voluntary recall. They also designed a replacement wrist strap and posted safety warnings on the web as well as the instruction literature. ETM 591 Jason Coggins Nov. 4, 2010

IMPACT OF RECALL Legal Consequences: There have been many class action lawsuits against Nintendo in the wake of the voluntary recall but none of them have been successful. The lawsuits range from personal injury to property damage claims and typically fail due to lack of evidence and or the gaming machine was used in an improper manner which the gaming system was never intended. [3] Reputation: The incident hasn’t affected the reputation or sales of the Nintendo brand or the gaming system. Sales: The Nintendo “Wii” gaming system has continued to be one of the best selling gaming systems to date for it’s inventiveness and ease of game play for customers of all ages. The recall cost Nintendo about $1 million dollars. [2] ETM 591 Jason Coggins Nov. 4, 2010

REFERENCES [1] US Consumer Product Safety Commission. (2006). Nintendo of America Initiates Replacement Program for Wrist Straps Used with Controllers for the Wii Video Game System. (CSPC Release No. 07 -061). Washington, DC: Office of Information and Public Affairs. [2] Associated Press, Fox News. (2006). Nintendo Recalling 3. 2 Million Wii Remote Wrist Straps. Retrieved from http: //www. foxnews. com/printer_friendly_story/0, 3566, 236687, 00. html. [3] Wajert, Sean. (2010). Game Over for Plaintiffs in Wii Class Action. Retrieved from http: //www. masstortdefense. com/2010/10/articles/game-over-for-plaintiffs-in-wii-classaction/. [4] Sinasohn, Roger. (2006). Product Recall: Nintendo Wii Controller Wrist Straps. Parent Dish. Retrieved from http: //www. parentdish. com/2006/12/18/product-recall-nintendo-wiicontroller-wrist-straps/. [5] Mirpuri, Dipika. (2006). Recall of Nintendo’s Wii Controller Wrist Straps. About. com: Toys. Retrieved from http: //toys. about. com/b/2006/12/18/recall-of-nintendos-wii-controller-wriststraps. htm. ETM 591 Jason Coggins Nov. 4, 2010