Nintendo: Disruptor being disrupted!
In 2010, the video game market’s revenue was US $ 62.7 billion of which game software revenue accounted for US $ 29.8 billion. The video game industry was mainly made up of 4 segments: PC gaming, console gaming, handheld gaming and mobile gaming. The video game industry had seen a transition from traditional gaming to multiplayer gaming, social network gaming, free online games and freemium games where full versions required purchase. The consumers now prefer buying games online and getting them digitally delivered via downloads from the internet rather than stored in physical disc formats. The companies now believed in extending the game console’s life cycle by bring in peripherals and add-ons rather than developing an entirely new console. Competitors
The three main contenders in this industry were Nintendo, Sony and Microsoft. Nintendo’s competitors had huge financial resources due to their other businesses whereas Nintendo worked solely in the video game industry. Sony and Microsoft started catching up with Nintendo after the runaway success of the Nintendo Wii. Sony introduces the PS3 and Microsoft developed the Xbox360. Nintendo had used off-the-shelf hardware for Wii and made it suitable for the masses- specially the ‘Moms’. Wii avoided directed competition from next generation game consoles and instead identified a new market by targeting customers who had no or little interest in gaming. Along with Wii, Nintendo introduced motion sensing gaming, Wii Remote. Nintendo’s competitors, Sony and Microsoft started with the Playstation(PS) and Xbox respectively. They started catching up by bringing in advanced versions of the same being PS3 and Xbox360. Sony also introduced Playstation Portable and PS vita, both handheld game devices. Then it moved on to motion sensing with PS Move and PS Eye. Microsoft introduced Kinect to catch up in the motion sensing run. But these were not the real challenges or threats...
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