Responding To The Wii Essay

Executive summaryGiven the circulating(prenominal) grocery store scenario, Sony will have to fight on both fronts. The Wii has unlock a freshly segment of the market. Sony should adapt its strategy to address this new market. But Sony essential not lose sight of the big picture, to come after the long term incline for the center of the living elbow room. Sony should leverage its relation with back developers to introduce simpler games for the casual gamer. It has to keep targeting the hardcore gamer and it must continue to provide additional value as a undivided device for gaming, streaming movies and television, internet surfing, film conferencing etc. How attractive does the painting game attention look in late 2008? By 2008, the labor situation has become intense, with four of Porters five forces covering high threat (See Exhibit 1 in Appendix).However, the industry does hand the promise that the winner will occupy the center of the living room position, could pote nti onlyy create a stranglehold on the entire merriment industry and could reap profits. Therefore, the s get bys in this battle are high. why did Nintendo delay introducing its 16 bit video game system? Nintendo hold up introducing its 16 bit video game system in enjoin to avoid cannibalizing sales of the 8-bit NES. But competitors came up with new value propositions to take away market share.For example Sega employed the Judo strategy to garner market by introducing its 16-bit version, contemporaries, while Nintendo was concentrating on the 8-bit market. Sony, with its PlayStation and PlayStation 2 product flexures took this game further. They spread out the target customer base to include grown-ups by creating games fit for all ages and combining forces with game developers.Did Sega use any elements of Judo Strategy?Sega effectively implement Judo strategy by preventing its strong competitor Nintendo to come at it with beat strength. Sega attacked the pieces of the play w ith various small steps. It started with leveraging the 16-bit opportunity, and setting lower prices for its contemporaries to that of Super NES. Then it introduced its popular version of Sonic, the Hedgehog. It also hurt Nintendo by luring in third party developers with its low royalty strategy and build up twice the number of titles Nintendo had. In 3 yearsSega Genesis took over the market.How did PlayStation and PlayStation 2 win in their respective generations? With the industry go attractive, Sony entered the market with its 32-bit icon product Play Station targeting a large and mature audience. Sony, contrary to its competitors built up on the outsourcing strategy, by allowing developers more freedom, tools and income. Despite lagging on software titles, it was un cut offpable in the computer hardware segment overpowering Sega. As leader of the industry, Sony launched its Play come out 2 at 128-bit gearing up for the next revolution.Why did Microsoft get into the game?W ith the console games becoming attractive and multi capable compared to PC games, the PC freak Microsoft was concerned if the console platform takes over the PC platform. So it entered the video game console line of descent with Xbox as a bet against Sonys Play station. It was hoping to become successful in the video game business as it has been in the PC software business. Surprisingly the same recipes didnt cook well with the developers in this segment and Sony took over the throne by 2005.How was Nintendo able to regain the lead in videogames?With Microsoft and Xbox as strong contenders in the field, Nintendo was gearing up for the launch of its next generation console. While Microsoft was try to leverage the early release of Xbox 360, Sony was dealing with its internal technicalities. Both the competitors had incorporated superior technological features in to their products. While Xbox had Digital Amplification, Play station had the most powerful console. The technology prowe ss was so much that the products were HD-DVD and Blu-ray compatible and had online gaming features. On the other hand, Nintendos machine was less pass on across all features of processing, compatibility, sound and memory.However, Nintendo could made Wii special with its user friendliness and targeted a larger audience of not avid gamers. Its innovative query sensitivity and customizable features helped Wii overtake its rivals by 2008. Despite its low performing hardware or performance, it was its reachability to the large customer segment that generated its value proposition.What should Sony do in a flash?Sony should work with game developers to create simple games that target the Wiis audience. However, Sonys gaming console should still be high tech to restrain its hold on the hard core gamer. Sony should market the new PlayStation line as a value add product that is the one stop source for the entire familys entertainment needs. This way, Sony can counter Wiis threat while al so staying in the long term race for the center of the living room position. This position is essential for thwarting Microsofts plan of creating a stranglehold on the entire entertainment industry by being the electronic platform of choice in the home.