495 Wii Case 
BMGT495
Costco Team
Wii Encore
Question #1
One factor would be new & differential technologies in the game industry. In the console game industry, “generations” are defined by advancement of the underlying technology.
Nearly all technological leaps from one generation to the next were marked by a change of industry leadership. For example, the 3rd generation was dominated by the Sega Genesis console which came with 16bit microprocessors. The next generation Sony would introduce
PlayStation, a 32 bit CDROM based video game machine which had a bigger storage capacity and had lower costs.
Another reason would be the fact that customer’s preferences and desires change over a period of time. While someone might like more motion based games for one generation, the next time they might want to go back to controller based. While Wii was successful with their motion based, they were not able to stay the leader because their competitors realized that they needed motion based devices, and quickly developed similar systems. The reason why Sony was the exception would be the fact that Sony had first mover’s advantage, which allowed them to enter the market ahead of Microsoft and Nintendo. This allowed them to gain market share earlier which means their console was already in the living rooms of their competitors. Sony was also able to become dominant due to the fact that they were already an existing manufacturer of electronics, which meant they could design and manufacture parts in house.
Question #2
According to the case, Nintendo launched Wii and its motionsensitive controller in 2006. This was a significant success because it appealed to a broader market and the non traditional gamer with total sales of the Wii（86 million units) outdoing the sales of PlayStation
3 and Xbox 360. The starting price for Wii was also $250, much lower than the competing consoles. Nongamers would be more willing to spend money on a cheaper console especially
Costco Team
Wii Encore
Question #1
One factor would be new & differential technologies in the game industry. In the console game industry, “generations” are defined by advancement of the underlying technology.
Nearly all technological leaps from one generation to the next were marked by a change of industry leadership. For example, the 3rd generation was dominated by the Sega Genesis console which came with 16bit microprocessors. The next generation Sony would introduce
PlayStation, a 32 bit CDROM based video game machine which had a bigger storage capacity and had lower costs.
Another reason would be the fact that customer’s preferences and desires change over a period of time. While someone might like more motion based games for one generation, the next time they might want to go back to controller based. While Wii was successful with their motion based, they were not able to stay the leader because their competitors realized that they needed motion based devices, and quickly developed similar systems. The reason why Sony was the exception would be the fact that Sony had first mover’s advantage, which allowed them to enter the market ahead of Microsoft and Nintendo. This allowed them to gain market share earlier which means their console was already in the living rooms of their competitors. Sony was also able to become dominant due to the fact that they were already an existing manufacturer of electronics, which meant they could design and manufacture parts in house.
Question #2
According to the case, Nintendo launched Wii and its motionsensitive controller in 2006. This was a significant success because it appealed to a broader market and the non traditional gamer with total sales of the Wii（86 million units) outdoing the sales of PlayStation
3 and Xbox 360. The starting price for Wii was also $250, much lower than the competing consoles. Nongamers would be more willing to spend money on a cheaper console especially