Responding to Wii Essay

1567 Words Oct 11th, 2014 7 Pages
Responding to the Wii Group Case Writeup
BUSMHR 4490

In the Harvard Business Review case Responding to the Wii, Kazuo Hirai was faced with an interesting dilemma. Hirai, the chief executive of Sony Computer Entertainment Inc. faced pressure due to Sony’s Playstation 3 video game console losing market share to the Nintendo Wii. Hirai faced a major business decision in deciding how Sony should respond to the cheaper, more interactive, family oriented Nintendo Wii.
The Video Game Industry at a Glance
From an industry analysis standpoint, the videogame console industry in 2008 was not very attractive. The industry was, and still is, structured as an oligopoly in
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This is especially prevalent within the companies that own the majority of the market share. While continuous improvement is necessary on current products, it is also crucial to be bold and thinking outside of the box.
As mentioned, the common theme across the video game industry has been creating an innovative product and then simply improving the system over time. While that has been proven to work in instances in the past, there is a lot to learn from the creation of Nintendo’s Wii. Nintendo, like the rest of the company’s used the same ideology of continuing improvements to an already developed product until they took a bold move of introducing a whole new game console. When Nintendo introduced the Wii, they took a risk because it was not similar to their previous game consoles. They saw an opportunity to bring something new to the video game industry that could create value to not only the originally targeted market, but also a much larger market.
The Nintendo Wii is a prime example of how a company can serve their already targeted market and also see the opportunity to expand into additional segments. Much of Wii’s success was due to the fact that it appealed to a large audience. Nintendo gained a market advantage as ‘first movers’ in this new era of technological and conceptual change in the video game industry. The now enabled users to be more active and engaged which revolutionized the way consumers thought about gaming systems.
The structural

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