Wii Case

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1. ① Based on Figure A on page 4 : what are some possible factors that could explain why the leader in one generation did not become the leader in the next generation? ② Why Sony was an exception? * Some possible factor.

A. New & differential technologies in the game industry. In the console game industry, “generations” 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. Such as, the 3rd generation (1988~1944) was dominated by Sega Genesis console which was set firstly applied with a 16-bit microprocessors. And in the 4th generation, Sony introduced PlayStation, a 32bit CD-ROM videogame machine which had more storage capacity and more lower costs B. First mover advantage.

The earlier the new technology introduced, the more effective impact gave in the industry. Although the companies applied with the similar type tech, the first mover gained the perception as a dominant player. The first introduction of the 16bit and CD-ROM can lead respectively the market in its generation like Sega and Sony. However, it doesn’t affect always it. If the competitors could response strongly, quickly to follow it advantage, the first mover benefits would not last long like Wii. C. Read the consumer desire.

The victory of the Wii from the wireless motion-sensing controllers depends on the consumer desire. The consumer chose the lower performance product, Wii which had the wireless motion-sensing controllers, although Sony’ PS3 and Microsoft’s X360 was the high performance products. The consumer wanted to buy the user friendly products instead of over-techs. * Why Sony was an exception?

A. Intensive relationship with the developers.
B. The backward-compatible with the previous one.
C. The reasonable approaching of the pricing.
D. The relative weak competitors.
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