Case Study for Nentindo
Nintendo
The video game market has progressed through several stages in terms of hardware and software. But it has also faced many changes in leadership. The early battles were between Nintendo and Sega, but personal computers always had a role. Microsoft pushed this role by introducing its own game box. Then consumer-electronics giant Sony jumped into the battle and captured a big chunk of the market. The battles between manufacturers some-times depend on hardware and the ability of one manufacturer to leapfrog the others with an earlier introduction of the technology. Other times it comes down to creativity in games or other features.
In 1991, Sega was the first to introduce the Genesis game machine that used 16-bit computations for faster games and more detailed video displays. It was introduced in time for the 1991 Christmas season with several game cartridges available. Genesis also maintained compatibility with older games. With the technological lead on Nintendo, it looked as if Sega was ready to take the lead in the $6 billion dollar market for home video games. By Christmas, when Nintendo introduced its own Super NES 16-bit game, Sega held the lead in sales. Sega’s gain came partly from introducing the machine earlier and partly by selling it for $50 less than Nintendo’s machine. It also had more games available.
By most management measures, Sega Enterprises was ready for the huge Christmas season that began in September 1991. Its inventory system was automated, using Computer Associates’ software on an IBM AS/400. Executives had personal computers loaded with Microsoft’s Excel spreadsheet. Each night an EDI service bureau collected sales data over phone lines from 12,500 retail stores across the United States and passed them on to the Sega AS/400. Overnight, the computer created reports detailing sales of the Genesis machines and corresponding game cartridges that were sold the day before. Additional reports could be created by the MIS department
The video game market has progressed through several stages in terms of hardware and software. But it has also faced many changes in leadership. The early battles were between Nintendo and Sega, but personal computers always had a role. Microsoft pushed this role by introducing its own game box. Then consumer-electronics giant Sony jumped into the battle and captured a big chunk of the market. The battles between manufacturers some-times depend on hardware and the ability of one manufacturer to leapfrog the others with an earlier introduction of the technology. Other times it comes down to creativity in games or other features.
In 1991, Sega was the first to introduce the Genesis game machine that used 16-bit computations for faster games and more detailed video displays. It was introduced in time for the 1991 Christmas season with several game cartridges available. Genesis also maintained compatibility with older games. With the technological lead on Nintendo, it looked as if Sega was ready to take the lead in the $6 billion dollar market for home video games. By Christmas, when Nintendo introduced its own Super NES 16-bit game, Sega held the lead in sales. Sega’s gain came partly from introducing the machine earlier and partly by selling it for $50 less than Nintendo’s machine. It also had more games available.
By most management measures, Sega Enterprises was ready for the huge Christmas season that began in September 1991. Its inventory system was automated, using Computer Associates’ software on an IBM AS/400. Executives had personal computers loaded with Microsoft’s Excel spreadsheet. Each night an EDI service bureau collected sales data over phone lines from 12,500 retail stores across the United States and passed them on to the Sega AS/400. Overnight, the computer created reports detailing sales of the Genesis machines and corresponding game cartridges that were sold the day before. Additional reports could be created by the MIS department