NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY Executive Summary Nintendo is a Japanese based corporation founded in 1889 and its original purpose was producing playing cards. It changed its name from Nintendo Playing Card Company to Nintendo Company Limited in 1963. Since then, Nintendo has been creating video games and gaming systems that have become tops in the industry. There were many new players came to the market in the 1980s and early 1990s, which intensified the industry competition. With the increasing popularity of personal computers, gamers were no longer limited to playing their favorite video game titles on proprietary consoles.
2. Briefly, what are the network effects in the video game industry? In the case of the video game industry the indirect network effects exist in that the demand for the proprietary video game system (hardware) is dependent on the demand for the complementary good, the video game cartridge (software). In this industry, the demand for the proprietary gaming system and the video game software are inseparable; for example, Nintendo creates video games with “lock-out” security chips to prevent unauthorized game cartridges from being played on Nintendo hardware, and its competitor, Sega, does the same. Thus, if a user wishes to purchase the Nintendo game cartridges (software), he/she will have to purchase the Nintendo hardware.
In the past Samsung has been known for problems that I like to call “feature spam” It was very apparent last year with Samsung’s Galaxy S4, Samsung has developed a habit of stuffing as many gimmicky new features as into its flagship device, thinking the features will appeal to customers. While the Galaxy S5 follows the same pattern. However these features aren’t only useful, they’re awesome. Many of these features are very unique as well. The Galaxy S5 features an IR blaster, techie translation “The IR blaster acts as a remote for any TV, set top box, cable provider, etc.” The iPhone can gain these features, not without third party software/hardware combinations.
Xbox one, one of flagship product of Microsoft, plays a crucial role in the entertainment field, an indispensable part of Microsoft’s integrated strategy. ‘Games are the single biggest digital life category in a mobile-first world. And Xbox is a strong consumer brand with an incredible fan base’ quoted by a Microsoft Spokeswoman, illustrates the importance of Xbox one towards Microsoft. However, in console industry, there is a heated war mainly between Sony and Microsoft. Generally, PS4 of Sony beat Xbox both in sales number and popularity, and on the majority of websites players demonstrate more willingness to buy PS4 than Xbox.
I will discuss how the Japanese video market has fallen out of sync with the growth of global video game markets due to the demand for fantasy and surrealist games in Japan. History Fusajiro Yamauchi formed the company Nintendo on September 23, 1889 under the name “Nintendo Koppai”. The company began by selling playing cards and the name itself even meant, “Leave luck to heaven”. These cards were famous for being handmade and grew in popularity across Japan. By 1933 the CEO of the company Sekiryo Yamauchi who was the adopted son of Fusajiro Yamauchi established a joint venture between Nintendo and another company giving Nintendo the new name “Yamauchi Nintendo & Company”.
The Console War of 2013-15 From late 2013 to this day, the biggest debate in the gaming community still stands. Is the PlayStation 4 better than the Xbox One? Gaming is a big business, and Sony and Microsoft are in a constant battle for the number one spot in technology. Sony comes out on top with the PlayStation 4. Not only are the perks better, the sales are higher, but Sony has also upgraded a substantial amount between the PlayStation 3 and the PlayStation 4.
In addition, this paper will develop a change strategy that could have been implemented to prevent the business from failing. Failed Business - Blockbuster Objectives, Vision, Mission When Blockbuster was in existence as a chain store its mission according to About.com (2014) was "to provide its customers with the most convenient access to entertainment, including movie and game entertainment delivered through multiple distribution channels such as our stores, my mail, vending and kiosks, online and at home." The company believed they offered customers an entertainment experience at value prices. Indicators of Failure Back in 1985 Blockbuster was the biggest thing on the market. Everyone was going to the video store for the new releases of all movies.
(Cooper & Schindler, 2014) “As part of a growth strategy implemented shortly after September 11, 2001, Vicale finalized the purchase of an e- commerce toy company” * After the incident took place on 11, 2001 Vicale summarized that market for the toys are growing and it was an opportunity to admire the hero of 9/11 resembling George Bush. Which he was intended to do it for his self but after his research he came to know that the potential for the action figure business is high. Vicale found Hasbro and numerous other companies are the biggest players and it has a worldwide market. It clearly concludes that Vicale research gave him a deeper understanding of the action figures market and he was able to make a clear view of where his business is heading. Descriptive Descriptive study tries to discover answer to the questions who, what, where and sometimes, how (Cooper & Schindler, 2014).
Blue Ocean Strategy Blue Ocean Strategy is a book that was written in 2004 to give its readers the ability to develop their brand in what some would call an abandoned or unfamiliar market place. The book was recognized by the Wall Street Journal as a best seller, along with numerous other recommendations and acknowledgments from industry giants. Blue Oceans was written by two authors with the intent to show that companies can succeed not by battling competitors, but rather by creating ″blue oceans″ of uncontested market space (Kim, Mauborgne, 2004). In marketing, the blue ocean strategy is a unique approach to building a customer base. Instead of trying to compete in a crowded marketplace with products that already exist, a blue ocean strategy looks to create an entirely new market segment.
PART A: Product I have chosen to do my assignment of Product Life Cycle on the Xbox 360 games console made by Microsoft; this is a widely known technological product in the UK and the rest of the world. The Xbox 360 has had an interesting product life cycle as the producers have done lot to start and sustain its life, including price reductions, promotions and bundle deals. These offers have also helped Microsoft stay ahead of its main competition, Sony with its Play station 3, as well as extended its life cycle. “A product’s life cycle is the period of time over which an item is developed, brought to market and eventually removed from the market. First, the idea for a product undergoes research and development.