How Technological Innovation Plays On The Competitive Process Between The Products Of Three Dominant Force

Nintendo’s strategy for pricing of consoles and games was to lock-in the network effects consoles offered by pricing them at- or below- cost and reaping profits by pricing video games at significant margin. Nintendo took these actions because it knew that if consumers used the NES/ Famicom console, they would be a captive audience for its higher-margin video games which were necessarily more perishable from a consumer taste perspective. This affected the value created by

Some of companies of the 1980s were Nintendo, Sega, Epoch, Bandai and Sony. (“5 of 7”) They were all designing new video game consoles and developing games to sell with the console. (“5 of 7”) Some companies were epic failures and others opened the way to new technologies. The Famicom Disk System, which was released by Nintendo, also known as the FDS, failed in Japan and both the game system and the games were unreliable. Regardless of case, several million were sold. (McFerran) In the late 1980s Nintendo released its

Sony Corporation is a Japanese owned company, created in 1946 based in Tokyo, Japan. The company competes in the technology market with diversity. This includes video games, computers and computer hardware, television, media players, etc. With that being said, Sony has had their ups and downs over the past few years, just like everyone else in this industry. Things such as the U.S. economy can really affect the future of this company. Now that the economy is on the downfall, things such as entertainment are not as important as paying for food, gas, and other bills. It is important to realize these things as you analyze the company due to the fact that the company

The first console was called the Brown Box and was mad by a TV maker, Ralph Baer. The Brown Box was made in 1967. Nolan Bushaell bounded Atari in 1972. Atari then had its first big hit with the infamous Pong. In 1980 Mattel releases the Intelivision which is the first challenge against Atari’s rule. Nintendo wasn’t always the video game we know, it was originally a Japanese playing card company. In 1985 Nintendo releases the Nintendo releases the Nintendo Entertainment System, Wow what a creative name that is. Then in 1989 they released their second smash hit with the Gameboy, to compete with other companies such as Atari, Who released their Atari 2600. It included the newly released Tetris which would grow to become a massive hit to top off the huge sales of the Gameboy. In 1991 the super Nes is released. Then the original PlayStation is released in 1995 becoming extremely popular. To combat this popularity Nintendo released the Nintendo 64 in 1996. It includes favorites such as Mario 64, Zelda, and Metroid. The PS2 is released in 2000 marking the beginning of a new era of game consoles. It is the first console to include 128 bit graphics. A problem with original game consoles such as the Atari 2600 is they had little memory. With such little memory Graphics could only be up to 160 by 228 pixels. The normal today is 1925 by 1080 pixels. Some of the earliest adventure games used text instead of images to create the world you’re in. The first of these “text” games was

After Sega went out of business with their last console, the Sega Dreamcast, there were only two developers creating consoles which was Nintendo and Sony. Microsoft saw an opportunity to make money and they had already had some experience in the video game industry with their help at Sega.

To attempt counteract this cyclical slowdown, EB games have introduced an ever-growing variety of accessories with games to increase the revenue raising capacity of their respective consoles, as well as maintaining the loyalty and attention of a fickle gaming public. Some types of games have been released, with specialty controllers to great success, mitigating the expected lull in sales in the lead-up to new consoles. Recently however, the competition has become slightly skewed. Nintendo’s newfound dominance of the market is causing some headaches for Sony and Microsoft.

Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.

Nintendo, the company which eventually became a major player in the video gaming industry for the next three decades, delivered their first series of video game console from 1977 to 1979. The Color TV Game Series were only for sale in Japan. These consoles essentially followed in the footsteps of Atari and featured Pong-style games.

Overall, the market response to these three consoles has been surprising. Nintendo Wii, has outsold its rivals and more surprisingly, Sony’s PS2 has outsold PS3. This has let Microsoft and Sony with the enormous challenge of competing with a rival possessing two key advantages: a lower cost console and a product with a sound response in the market.

We probably don’t need to explain which console’s success PolyStation tried to cash in on, as the name kind of gives it away. What’s remarkable about PolyStation is how it actually was the first to start a whole generation of PlayStation knockoff.

The main suppliers in the video game industry are the game makers. These companies pay a royalty fee to the company that makes the console. Game makers have the decision to make certain games exclusively for one console if they are paid enough money, for example Halo made for the Xbox, or make them available on many different platforms. This threat is also moderate for the game industry. The larger the variety of games as well as the better the quality the more likely a customer is to buy one game console over another.

Nintendo appears to have implemented a market-penetration pricing strategy. The Wii at a cost of $250 is 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to penetrate the market due to affordability in most segments. This aligns with the assumed company’s aim of maximising market share in the current and new segments. To achieve this, Nintendo ensured that the Wii was less costly to manufacture. Moreover, a higher sales volume may lead to lower unit costs and higher long run profits. Conversely, Sony is believed to have a market-skimming pricing strategy. The company invested $2 billion in technology, so this strategy aims at recovering the maximum amount of revenue to cover the high costs incurred in the early stages of the product life cycle. Additionally, Sony has a strong brand due to the success of their previous machines (PS2 and playstation) and the high price assists in communicating the image of a superior product with quality.

The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological up gradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry though they were not able to do as well as their competitors (Sony, Microsoft).

Nintendo, the Japanese video game console-manufacturing corporation, is one of the big players in the respected industry along with Sony and Microsoft. In 2006, when the competitors were following the industry norm to improve the product features, Nintendo began a new venture to target a new market with a new product that none of the competitors had. By combining virtual reality gaming features as well as the convenience of staying at home, Nintendo gave birth to the “Wii”. Today, they offer an updated version of this platform called “Wii U.” . It is said that Nintendo is expected to lose 240 billion dollars on sales in every category. Even the newest addition the Wii U, has not been doing so well and did not sell out in the market as

The main obstacle facing a start-up video game console company from entering the industry is saturation of the market from the larger video game console makers or the “big three” Nintendo, Microsoft, and Sony. The big three tend to release new game consoles around the same time frame and compete head to head for sales. During the time frame it is impossible for a new entry to jump into the fray. 2010 was a banner year for video console sales Sony’s PS3 sold 14 million units followed by Microsoft’s Xbox 360 13 million and surprisingly Nintendo’s Wii led the big three selling 17 million units. After the 2010 release of all three consoles sales started to decline for each company. Nintendo took the largest sales loss at 72% in 2013 only 747,000 were sold compared