Nintendo wii
Responding to Wii
PESTEL analysis
PESTEL analysis for the game console industry in 2008
The key developments in the industry post-2008 are
Increase the market share of software (based on third-party developers)
During the 2007 , the market share of game console industry is ocuppied by Sony,Nintendo,Microsoft. Ats he cosole market is saturated,the competition will be fierce in software based on third-party developers.
Release new generation game console with high definition and physical contact technology
Since Wii’s success, next generation game consoles will focus on physical contact technology. Otherwise, Microsoft and Sony already have high definition technology.These high-tech will be combined in next generation.
Release new generation game console with 3D technology
3D technology is prevalent since it was used in movies.The game console industry will also take it as an advantage.
Through Nintendo Wii the way of playing games changed. Gaming is no more about just sitting in front of a television but also moving. This model has been adopted by Microsoft and Sony by offering Kinect (Windows) and the PS 3 move controller for its consoles X-Box 360 and Playstation 3.
The consoles X-Box 360 and Playstation 3 were already advertised as a Media Centers at their release. Through the ongoing intergration of internet during the last five years they have established as being more than just consoles by offering a chat function, connection via facebook or watching movies on ps3 via internet.
Altough there are only three main competitors in the market the competition is strong so that Playstation even had to set the initial price of its Playstation 2 under production costs to gain market share.
Nintendo managed to escape the competitive red ocean market for conventional consoles by offering a completely new way of playing games attracting new customer groups and achieving a high margin.
PESTEL analysis
PESTEL analysis for the game console industry in 2008
The key developments in the industry post-2008 are
Increase the market share of software (based on third-party developers)
During the 2007 , the market share of game console industry is ocuppied by Sony,Nintendo,Microsoft. Ats he cosole market is saturated,the competition will be fierce in software based on third-party developers.
Release new generation game console with high definition and physical contact technology
Since Wii’s success, next generation game consoles will focus on physical contact technology. Otherwise, Microsoft and Sony already have high definition technology.These high-tech will be combined in next generation.
Release new generation game console with 3D technology
3D technology is prevalent since it was used in movies.The game console industry will also take it as an advantage.
Through Nintendo Wii the way of playing games changed. Gaming is no more about just sitting in front of a television but also moving. This model has been adopted by Microsoft and Sony by offering Kinect (Windows) and the PS 3 move controller for its consoles X-Box 360 and Playstation 3.
The consoles X-Box 360 and Playstation 3 were already advertised as a Media Centers at their release. Through the ongoing intergration of internet during the last five years they have established as being more than just consoles by offering a chat function, connection via facebook or watching movies on ps3 via internet.
Altough there are only three main competitors in the market the competition is strong so that Playstation even had to set the initial price of its Playstation 2 under production costs to gain market share.
Nintendo managed to escape the competitive red ocean market for conventional consoles by offering a completely new way of playing games attracting new customer groups and achieving a high margin.