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Business strategy: Video Game console industry in 2012 - Case Study Example

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Between 1999 to 2005, Sony publicly launched its PlayStation 2 (PS2) whereas Microsoft was focused on improving its technology used for Xbox (Grant 605). To compete with…
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Business strategy: Video Game console industry in 2012
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Download file to see previous pages do’s sales unit was higher as compared to Sony PS3 and Microsoft’s Xbox 360, the revenue of both Sony and Microsoft was higher as compared to Nintendo between 2009 to 2010 (Grant 606).
Due to financial and technological resources, both Sony and Microsoft became more appealing in the eyes of the public consumers (Grant 606). As a consequence, Sony’s total sales during the year ending March 31 has reached 6,403 billion yen as compared to Nintendo’s 648 billions of yen during the same period (Grant 611).
The case of Nintendo can be fully analyzed using the evolution of industry structure based on the life cycle model. Upon analyzing the case of Nintendo, it is pretty clear that this particular game console company has already reached its maturity stage. Unlike the Nintendo Wii game console, Sony’s PS3 and Microsoft’s Xbox 360 can be used as a multifunctional home entertainment platform (Grant 602). It means that not unless Nintendo will do something about its technological or product innovation, this particular company is at risks of reaching the decline stage. When this happens, Nintendo would definitely loss a large of its existing customers to its close competitors which include Sony and Microsoft Company. The problem with reaching the decline stage is that Nintendo Wii brand may eventually become obsolete within the game console market.
The only innovative feature of Nintendo Wii includes the fact that this particular game console is capable of using a remote controller that is very sensitive to the hand movements (Grant 606). Therefore, people can easily use this particular game console for sports and exercise activities (Grant 606). However, it is unfortunate that Nintendo Wii cannot offer its end-users or repeat buyers the benefit of being able to enjoy high quality graphics and speed offered by both Sony and Microsoft (Grant 606). As compared to Sony PS3 and Microsoft Xbox 360, Nintendo’s Wii cannot be used with an Ethernet, DVD player, or a ...Download file to see next pagesRead More
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