The video game console wars Essay

1 . Compare Nintendo’s web marketing strategy for the Wii with Sony’s strategy for PS3. Right at the end of 06\, two video game console sector giants, Manufacturers and Sony had released their individual new products; the Wii and PS3.

Numerous marketing strategies had been implemented by both rivals and this writing attempt to examine common and differing components. Similarly, both equally companies had a product differentiation strategy, with the aim of being distinctly set apart from their rivals by the browsing market. Yet , different aspects of this strategy were focused on by firms. For example, Nintendo differentiated via item form and design.

Instead of the traditional control mechanism where control keys are hard pressed, the Wii had a wifi motion-sensitive control mechanism, which recognises the player’s arm motions. Thus, actions such as golfing, tennis as well as dancing could be detected by game. It is assumed that the rationale behind this can be the fact that “new things and ways of carrying out things” constantly grab attention, whether advantages or disadvantages. Thus, Nintendo’s aim could have been to gain the market’s attention after which convince all of them positively regarding the Nintendo wii.

Conversely, Volvo attempted to identify through efficiency quality. Heavy investment was made on a new processing chip and a laser diode, which could rev up the speed considerably and offer remarkable graphics quality. The video gambling industry prides itself on graphics; consequently differentiating in this area may significantly increase demand.

One thinks however , that Nintendo’s merchandise differentiation technique had a more powerful impact than Sony’s. The reason is , Sony adopted the sector norm, of every new generation of devices being quicker and more highly effective than the earlier generation, because the case states. Thus, the market was already anticipating the enhanced features, compared to the attention of a cutting edge game style by the Wii. With reference to the Ansoff Matrix framework, Nintendo implemented an advertising diversification approach, whereby they offered a new product to new marketplaces (in conditions of untouched customer segments).

Nintendo’s designers, according to the case, deliberately designed a machine that is simpler to use, considering that the complexity of current online games appeal only to advance avid gamers. This therefore, would allow marketplace reach to a broader market of new segments, thereby beginning to challenge Sony’s market share dominance. For instance, men and female over and under the common age group of video game players may now demand the Wii. On the other hand, Fiat implemented a product or service development strategy, by launching a new merchandise in their existing market part of customers, as the Ansoff theory advocates.

Hence, Sony’s PS3 targeted their current customer segment for the PS2. An advertising strategy of Sony may have been to have first mover advantage, by introducing in November 2006 in the United States before the Wii. Most research indicate the market master gains the greatest advantage, on the other hand sometimes it can be risky and expensive. In Sony’s case, they would have conveniently been able to capitalise for the fans of the playstation and PS2 and new customers entering that marketplace.

Their problem however was inadequate kick off preparation and planning in relation to their diode technology, since mass creation issues triggered shortages. Therefore, achieving the Xmas season’s full revenue potential was dropped. Even though Nintendo was the second mover launching a month after in January, they had a major international marketing launch strategy getting executed.

They made the Wii found in the United States, the Eurozone and United Kingdom. Because of this, the benefits of being the initial mover would have been gained in the Eurozone and United Kingdom. It is noted that Volvo launched the PS3 several months after in Europe. Being the 2nd to enter that market, Volvo may include researched virtually any problems Nintendo may have encountered and adjusted appropriately, for a more stable launch. Nintendo appears to include implemented a market-penetration charges strategy.

The Wii by a cost of $250 is usually 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to sink into the market as a result of affordability in many segments. This aligns while using assumed company’s aim of maximising market share nowadays in this and fresh segments. To do this, Nintendo guaranteed that the Wii was less costly to production.

Moreover, a better sales volume may lead to lower unit costs and larger long run profits. Conversely, Fiat is considered to have a market-skimming costs strategy. The company invested $2 billion in technology, which means this strategy aims at recovering the ideal amount of revenue to hide the expense incurred in the beginning of the support life cycle. Additionally , Sony has a strong manufacturer due to the success of their previous machines (PS2 and playstation) and the higher price assists in communicating the of a superior product with quality. installment payments on your What is the important thing to the Wii’s popularity? The important thing facet accountable for the Wii’s popularity is based on the innovative design, which will “calls to action” the player with physical movement.

The writer sights the wifi motion hypersensitive game gaming system as a fresh, simple and fun method of gambling for all age groups. As a result, it might appeal not only to the traditional qualified video game person like the PLAYSTATION 3, but various other individuals outside that part. It thus makes marketing sense, if Nintendo advertised the game as being a family requirement of cultivating a satisfying, quality relatives time with members. It seems also a wonderful game pertaining to various simple social occasions. Furthermore, seeing that different types of games can be played, the Xbox has the potential to appeal to a vast number of various market segments.

For instance, The Wii Fit is an exercising game, where aerobics, yoga and also other body conditioning activities can be done. Thus, the Wii Match may have been positioned as a practical way of shedding or keeping your weight, as possible done in the comfort of one’s home and a far more enjoyable approach compared to just following a trainer on a DVD. Likewise, sports activities fanatics may well gravitate on the Wii sports for the games of their interest. Right now there also is the possibility of the Wii being used for rehab after a stroke or personal injury, due to it body enhance capabilities. It must be noted, that Nintendo’s worldwide marketing strategy of launching in three specific major areas, was a contributing factor towards quick reputation gained.

The areas were the usa, the Eurozone and the Uk. This means that great strategic promoting focus needed to be made within the different areas, to allow for international ethnical differences and legalities. As a result, Nintendo may have had to apply global merchandise strategies for marketplace adaptation in areas such as price, revenue promotion, shades, labelling and advertising setup, to name a few.

3. Do you go along with Sony’s decision to incorporate a Blu-ray DVD player in the PLAYSTATION 3. The writer agrees with the choice to incorporate a Blu-ray Auto dvd unit in the PLAYSTATION 3 SLIM. Firstly, Volvo is considered one of many market frontrunners in the buyer electric industry; where the brand is known for high quality and advance technology. Since the consumer market started out demanding more high definition TVs and viewing of DVD’s in high-definition, it produced good advertising sense to meet that need to get high definition images in the games, which in the end reinforced the company’s brand.

A “spin off” out of this implementation of Blu-ray, is usually that the PS3 can actually be used by consumers to watch Blu-ray DVD MOVIE movies, for those who may not own a Blu-ray Auto dvd player. Thus, the significance of the PS3 may increase, due to even more product uses than the primary function. Second, it was wise for Sony to include the Blu-ray Auto dvd unit in the PLAYSTATION 3, due to their current product range innovations. Sony experienced already released the Digital versatile video format in their DIGITAL VIDEO DISC players, as a result the inclusion in the PS3 was a commendable and necessary marketing approach, in order to keep as much products in the range updated with the most recent technological improvements.

More importantly, it was a moderate to push and promote the adoption of the Blu-ray in the market, reflecting good strategic planning for profit maximisation. The draw back to the rendering however , was your issue of mass-production difficulties of the diode for the Blu-ray, leading to shortages pertaining to the U. S holiday launch, because the case explains. Thus, it is assumed that there was a deficiency in appropriate operational planning and setup.

This can be a critical concern with new product planning, as shortages can greatly effects forecasted income streams and significant opportunities may be dropped. In Sony’s situation, the launch was around the Holiday season, wherever many PS3s may have been surprise considerations and individuals generally spend more on goods at this time, as a result of Christmas additional bonuses and improvements. Thus, Volvo would not have been completely able to capitalize on this, because of low supply of machines.

Inside the final analysis yet , if Fiat had anticipated any development issues to cause little temporary disadvantages at the start, one is in the opinion this is not really drastic a problem enough, to determine forgoing the implementation of the Blu-ray. The reason is , consideration has to the return on investment with the Blu-ray inclusion and the technological travel in the industry at large. The Blu-ray would have made greater demand than the HD-DVD and much more to become out of date, thus having an extended life-span. 4. A lot of industry observers have mentioned that the struggle between HD-DVD and Blu-ray is similar to the major between Beta and VHS videocassette platforms in the 1970s. That which was the outcome?

The videocassette showdown between Beta and VHS in the 1970’s mainly was a clear example of “listening and responding” as to what the market would like. It started out when Volvo produced Batin, a video regular which a new recording moments of 60 minutes. Nearly one year later on, JVC released the VHS, which is one more video regular that had a recording time of 120 minutes. The two videocassettes were several in size and completely antagonico.

The VHS was more affordable than Beta; however the longer the recording period resulted in a degraded top quality of picture. The market however, wanted a longer recording period, which brought about longer films and basketball matched being recorded. Volvo held their very own end to get more years providing the more high end market together with the 60 small high quality videocassettes, but sooner or later in the middle 80’s they had to offer videocassettes with a much longer recording the perfect time to remain competitive.

By then nonetheless it was past too far and VHS already kept dominance on the market. VHS received the battle and in 2002 the last Beta machine was produced. Sony’s mistake was not listening to the particular market desires and not happy to compromise the product quality to satisfy the market. The fight between HD-DVD and Digital versatile is quite similar, however now Sony is definitely not the defender, however the challenger. To forecast who have the success may be, precisely the same underlying factor exists, relating to listening to industry and responding.

The case points out of the ongoing electronic industry’s upgrade to high definition Tv sets and DVD movies. As a result, one can assume that consumers want a player which gives the greatest quality of high explanation. A common element between HD-DVD and Blueray is that they possess 1080 lines of quality (the finest quality video play-back possible) on the widescreen HIGH DEFINITION set, since the case shows.

Thus, individuals are going to search for other factors which can determine which player supplies better quality. Firstly, the fact that Sony’s Blueray technology is definitely incompatible with Toshiba (assuming other competitor products while well) and will be used about Sony products, signals that Sony is attempting to maintain a kind of niche market, which essence is aimed at guaranteeing that using Bluray technology about Sony goods will produce the best quality. This is certainly similar to what Apple will with their selection. Secondly, over the years Sony offers positioned and built their particular brand to represent “high quality” and thus brand loyalty can be strong amongst customers in the electronic market.

Lastly, value sends industry signals and the common understanding is that higher price tends to indicate high quality. The situation states that Sony BDP-S1 and S300 cost $999. 99 and $600 respectively, compared to Toshiba’s models ranging from $399. 99 to $799. 99.

Hence the higher selling price of Sony can be presumed to have better quality. Conclusively, HD-DVD and Digital versatile battle is nearly mirrored in Beta and VHS competition. VHS won the struggle since they pleased the market’s demand for longer recording time with the videocassette.

With HD-DVD and Blueray, the market is definitely assumed to actually want high quality on their high definition widescreen HDTVs. The writer feels that Volvo with their Blu-ray technology would win the battle, simply because they can reflect a better quality over Toshiba, through “non-1080 lines of resolution” elements. CITATION Czinkota, Michael, and Ilkka Ronkainen. International Marketing.

Thomson South-Western, 2007. Harvey, Nathan, and Louise Wujud. 2012. “Suitability of Wii Balance Panel for treatment of ranking after heart stroke. ” Essential Reviews seventeen, no . five: 311-321 Kotler, Philip, and Kevin Keller. Marketing Administration.

Pearson Education Limited, 2012.