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ends's S-trategy for

the

,.c A s E

.1

Sdly Sarrett
The Llnivcrsity of AJabama
in

ofAlahma
for market

sqnwqr

gxne consoles
(PS3) on

b€e

third-gffidisl
selliag

in_ eanieit drrirrg

Nwbc l?, 2006, h headlion agairst M*xodb first-b-sta*et rhich had been rdcsd a full 1a ear2005. Tbc n€& LJ/pe suruuding h*ich overshadcred *e innoduction of -Wii system

bliday seasm" Ss5r srted

is

vidm ganre console segmen since 2ffi0, Iwata warited to todally change the ryrtet's perception oftheWii by pxwiding anentirely different video strare in ttre gamc

playingc4pqi€,ne that would

be less intimidat-

o casual garws and to people who bad not previou$ plapd video garrs. The concept un&dying ing the ent

Wii--with its inrcvrtive

tw6 dtt6 later.

ffitroll€r-lras' to build

and distinccively differ-

on the.company! sucon tire popular

Many lurd-

cesg

viewed the Wii as a toy, deridirg the ib urcak graphics, I*tftof DVD playtac( name. Some vileogane industry aaWii as tbc lrsF&ch efort of a srugthat bad dosdnatedthe globat glandscape ad t*rs hccorne incre*iryb !h. market wi& its rhen Sony followed fur lffierosoft5 entry into with the Xbm-AraftCs acknoc,ledged *ystem world frt {€tl strategicdly ri& DS haft{reW !rid6 game plajpr,

vittr the innsvative user interface

han&Id Ninendo
garne

DS video game player.

While Nintendo's strategy for the Wii of concdatating on pioaeering a daringly differenr video contoller (as opposed to building a raft

@

ofnew

esbd

that

Nimdot

lFlatively smal!

games, givec tbe lf;ffit lack of technoistication relatirre ra, PS3 and Xbox

sn*er
of

new Wii rwrld of peoplewbo

grlphics feagres and technological capability into -the essole icelf--as had leen done for.the Xbcx . 3@ and PS3) uras vioved as very risky, it so far hid proved spectacularly zuccessful. Indee{ Nintendo quickly sold out of Wiis in the 2006 boliday season, sold atl the Wiis it could produce throughout 2007, and *zs expccted to bave still higher sales in 2008. As of mid-2008, Nintendo's cumulative sales of the Wii frr srpassgd thosc of the PS3 and ttre XUoi geO.

{b

Iimited avrilabiiiqr
to play on

Nintrndo! $lti to the surprise ofrnost everyone, was the mr&et leader in sales of thir6generation video game consoles.

action-oriented

enougtr, Flimdo did not disllhc Wii would lildy beve limited market &ct while the Wii was i:r the develo'pmenI$ntendo's CEo Satsa twata prefened of the Wii as a kxagenerarion: video since this inrplicd ir would be aa ev+

lffli cosoles.

aback

Initially both Microsoft and Sony were taken ty tbe Wii's apparently broad appeal and

ors

a small global

rPlayStatioo

tbb &me Cube, which npr*g share against tbe ? ed tk modestly popular

resounding rrarket success. During 2007, they initiated a series of efforts to atttEct more buyers for the Xbox and PS3, calling aftention to an asiortment of technologic*l capabilities and graphic features built into theii consoles and promoting the release ofnew games fur their consoles. Their counterattack was only orodesti5r successful, However, heading into the Copyrigln O2OO8 by

Njntendo's declini$g sales and market

Lo

Marirc. All righh

rescrued.

c-T

n

Pat

2

Cases in Graftrng and Ercortirqj

hoEday season of.2@8, Smy and Microsofl wtre

larwhing a fresh atack on multiple fronts, includiae

Jgs th$ atloyred gamers b play in uays simitrr to cmqoJlls, pri;e .ud -fietenet a patent infringwrent cuts. eOaiti*"ffy, lherc wat case in the UaitJ Stst€s on the core
acrrclon its wii_rcm-ote

sonryare de$:gned for casnal garnerq new controi

popular canuoller that vr6 oac of the main fa-ctm that difFerentiared *ie Wii &ora is

techdgy Nintendo uied ro (*.m"il.a,f,. wii.;;d;

c"*p"rLro-*"

COMPANY BACKGROUND
rk video place. From bumble begiming* urnun'"f"".*", ", of Japanese card games, t$e corirpany haA over Ae. yeasgaiaed a...
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