Responding to the Wii Group Case Writeup BUSMHR 4490 In the Harvard Business Review case Responding to the Wii‚ Kazuo Hirai was faced with an interesting dilemma. Hirai‚ the chief executive of Sony Computer Entertainment Inc. faced pressure due to Sony’s Playstation 3 video game console losing market share to the Nintendo Wii. Hirai faced a major business decision in deciding how Sony should respond to the cheaper‚ more interactive‚ family oriented
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Responding to the Wii Introduction Kazuo Hirai‚ the chief executive of Sony Computer Entertainment Inc. (SCEI) has encountered two large rivals in the video game industry this year. Nintendo and Microsoft have released advanced video game consoles that have left Sony sales behind. Nintendo especially‚ has broken the status quo for marketing in the video game industry by dramatically expanding its target market from 18-34 year-olds to 9-65 year-olds both male and female with its new video game
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segment‚ Sony will have to develop a more interactive way of using their console without dropping the numerous features to avoid losing their core player market share. The key of success for Sony is to adapt a new technology such as Nintendo did with Wii that will enable the company to target a broader market and not only the males from 16-36 years old. The advantage of entering those two markets with one console is that Sony will enter a bigger market
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Case 2 Responding to the Wii Question 1: How structurally attractive is the videogame console industry in 2008? There has been a lot of competition in the market of gaming console producers after the videogame industry started in 1972 when the television maker Magnavox introduced its gaming system Odyssey. Other producers like Atari quickly developed their own gaming systems and competition in this market was a fact. Over time other game console producers joined the market such as Nintendo‚ Sega
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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
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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
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Wii Encore Case EXECUTIVE SUMMARY There are many possibly factors that oculd explain why the leader in one generation did not become the leader in the next generation. First of all‚ there were ne and differential technologies in the game industry. In the console game industry‚ “generations” are 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 third generation (1888-1944)
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Wii What were Microsoft’s motives in entering the games console market with X-box? One of the initial reasons for Microsoft entering the games console market was that they believed they could use its software expertise to aid it hardware-game industry. It was looking to expand from its focus mainly on PC’s and laptops. It was looking for diversification in the video games market. What are the competitive advantages in the model of the wii? There are several advantages in the model of the Wii
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1. The demand for the Wii console is relatively elastic because it has close substitutes which are the PlayStation 3 and Xbox 360 and consumers will tend to shift to others if the price of Wii console increases or if it happens that there is no availability left for it after its first hot lunch. 2. The supply for the Wii console is relatively elastic because the quantity to be supplied is determined through the price. Also in most markets‚ it is said that time period is considered as determinant
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Technology and Innovation Strategy Individual Assignment: “Nintendo Wii” (09/25/2012) ------------------------------------------------- Matteo Berzoini ID: 1432814 ------------------------------------------------- 1. How attractive is the video game console industry in 2008? 2. As Sony attempts to regain industry leadership from Nintendo‚ what lessons should Kuzuo Hirai learn from the history of the video game industry? How has the structural attractiveness of the industry changed
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