Responding To The Wii
Responding to the Wii
Executive summary:
Given the current market scenario, Sony will have to fight on both fronts. The Wii has unlocked a new segment of the market. Sony should adapt its strategy to address this new market. But Sony must not lose sight of the big picture, to win the long term race for the “center of the living room”. Sony should leverage its relation with game developers to introduce simpler games for the casual gamer. It has to keep targeting the hardcore gamer and it must continue to provide additional value as a single device for gaming, streaming movies and television, internet surfing, video conferencing etc.
How attractive does the video game industry look in late 2008?
By 2008, the industry situation has become intense, with four of Porter’s five forces showing high threat (See Exhibit 1 in Appendix). However, the industry does hold the promise that the winner will occupy the “center of the living room” position, could potentially create a stranglehold on the entire entertainment industry and could reap profits. Therefore, the stakes in this battle are high.
Why did Nintendo delay introducing its 16 bit video game system?
Nintendo delayed introducing its 16 bit video game system in order to avoid cannibalizing sales of the 8-bit NES. But competitors came up with new value propositions to take away market share. For example Sega employed the Judo strategy to garner market by introducing its 16-bit version, Genesis, while Nintendo was concentrating on the 8-bit market.
Sony, with its PlayStation and PlayStation 2 product lines took this game further. They expanded the target customer base to include grown-ups by creating games fit for all ages and combining forces with game developers.
Did Sega use any elements of Judo Strategy?
Sega effectively implemented Judo strategy by preventing its strong competitor Nintendo to come at it with full strength. Sega attacked the pieces of the play with various small steps. It started with leveraging
Executive summary:
Given the current market scenario, Sony will have to fight on both fronts. The Wii has unlocked a new segment of the market. Sony should adapt its strategy to address this new market. But Sony must not lose sight of the big picture, to win the long term race for the “center of the living room”. Sony should leverage its relation with game developers to introduce simpler games for the casual gamer. It has to keep targeting the hardcore gamer and it must continue to provide additional value as a single device for gaming, streaming movies and television, internet surfing, video conferencing etc.
How attractive does the video game industry look in late 2008?
By 2008, the industry situation has become intense, with four of Porter’s five forces showing high threat (See Exhibit 1 in Appendix). However, the industry does hold the promise that the winner will occupy the “center of the living room” position, could potentially create a stranglehold on the entire entertainment industry and could reap profits. Therefore, the stakes in this battle are high.
Why did Nintendo delay introducing its 16 bit video game system?
Nintendo delayed introducing its 16 bit video game system in order to avoid cannibalizing sales of the 8-bit NES. But competitors came up with new value propositions to take away market share. For example Sega employed the Judo strategy to garner market by introducing its 16-bit version, Genesis, while Nintendo was concentrating on the 8-bit market.
Sony, with its PlayStation and PlayStation 2 product lines took this game further. They expanded the target customer base to include grown-ups by creating games fit for all ages and combining forces with game developers.
Did Sega use any elements of Judo Strategy?
Sega effectively implemented Judo strategy by preventing its strong competitor Nintendo to come at it with full strength. Sega attacked the pieces of the play with various small steps. It started with leveraging