Case 1: Nintendo Disruptive Strategy: Implications for the Video Game Industry- Extended Reading

In my viewpoint, strategic alliance with competitors could be considered as one of Nintendo's business strategy:

1. Nindento used to co-develop play station with Sony, but the relationship didn’t last long and failed in the end.
2. Now with the ever-increasing technology advancement, the convergence of information technology, telecommunications, media and entertainment has brought about dramatic social and technological changes, the video game console makers began to realize there are new opportunities for video gaming, which could play a far greater role in people’s lives than mere entertainment.
3. Nintendo needs to explore new strategic cooperation opportunity with either competitors or other Consumer Electronics makers to develop next generation product; for example, Nintendo can make a device that attaches to mobile phone like iPhone, which unlocks the ability to play games from their own appliances.
4. The Win-Win solution will definitely generate new creation and benefit two sides for a long-term and sustainable success.

Sony find IBM to help produce Cell processor.

Microsoft find Intel and Nvidia to help produce cpu and graphic card.

I don't know why Nintendo has to make console itself. AMD could be a very good partner. AMD can produce good CPU and graphic cards now.

there are some key point as following which can make us think roundly about the case:
1.rivalry and new entrant
2.customer demand
3.price strategy
4.technical innovation
5.cost control
6.blue ocean strategy-create a new market

JingKaiXu wrote:Sony find IBM to help produce Cell processor.

Microsoft find Intel and Nvidia to help produce cpu and graphic card.

I don't know why Nintendo has to make console itself. AMD could be a very good partner. AMD can produce good CPU and graphic cards now.

I think Nintendo has never beening a computer-based player in video game industry, while Sony and Microsoft are two giant in computing enterment industry.

Basically, I think Nintendo versus Sony/Micorsof are representing two minor different way: concept-based route and computing-based route. Currently, it looks like Nintendo goes ahead. But I think later one probably would lead the direction of technological innovation.

Leng Shijie 2010960064 (10GA)

It's a pity that all these three game consoles are not available for purchasing in China market officially. Anyone got the idea why they are blocked out of China market...? If they are introduced to China officially, maybe the companies will increase sales dramatically.

The Slim will be launched soon. The creativity and innovation ability of game industry is really amazing by combining new ideas and technologies. Maybe later on, console can create a virtual 3D, even 4D scenarios for players to join the "real" game, which is only mentioned in those science fiction movies or stories before.

I am astonished by the new product of Microsoft in today's lesson. It's no controller,just using the body of gamer to control the game.
I hope we can enjoy this product early.

In the class today, professor put a very impressive video of new generation of XBOX which no longer need console but use the whole body to play the game. It looks very excited and really disrupt the disruptive strategy of Nintendo.

At the sametime, have read a news that Lenovo also claimed that they will launch a new product names "EBOX". The concept of EBOX is very much similar to XBOX360 that it can enable gamer to use the whole body to play the game. The EBOX also combine 3D technology into its game.

It seems all the competition again, start focusing same type of product and chose to copy successful strategy from the others.

Apart form the console itself. Game software is also a critical factor when a customer choose the console.

One of the issue PS3 has now is the game is not sufficient enough compared to XBox360.

When the complexity of console hardware raises , it also make it harder to develop game software for it.

Many small company or individual have very creative game idea, but no technical or money to develop. Sony and Microsoft need to give them some help.
For example, setup a prize for individual developers who create brilliant game.

Nintendo made profit much from it’s launch of Wii, and change the situation of losing customers in competition with Sony and Microsoft. In my point of view, it mainly due to the company’s innovation-introducing a new concept of Entertainment.

Entertainment is no longer traditional understanding of purely games, purely sports or purely travelling. To a certain extent, Wii could integrate sports into games. And thus extend its defined customers, allowing the ones that not familiar with games into this entertainment world.

The innovation action made Nintendo catch up the Sony and Microsoft, and maybe exceed them. I think this innovation is successful, while still remains the question. How Nintendo keep the advantage? A new product with the new conception is needed, so keep on walking with innovation, this strategy must be adopted by Nintendo.

Huang Xiaojie_GA_2010960806

Actually I believe what makes Nintendo overtake its rivals is that Nintendo is able to discover the potential needs in the commonly neglected user group-the non gamers. Armed with the understanding that everyone has the desire to be entertained and everyone has a kid inside his body, Nintendo developed this easy-to-play console Wii and attracts the attention of thousands of families.

This is the basic for any business, being able to identify real needs.

Nintendo succeed in Wii project , i think the most important is that Nintendo could innvocate on the contrary. Now the business is a war , everyone want to kill others and be the victory.
From the capability and fund , it's hard for Nintendo to compete with Sony and Microsoft , and Sony has PlayStation , Microsoft has XBOX , both of them are advantage and Nintendo follow either strageties of two companies , it will be failure. No customers will choose a second-ranking products within the same condition.
But Nintendo is lucky , it has a smart CEO and manage group , they innovate from the other fields , aim to the non-players for ps and xbox , and the games are suitable and easy for family , not professional players.
The successful result proves Nintendo make a perfect choice. Now it's on the same level with the other two companies , the next challenge is how to expand the market.
From the lecture , we watched XBOX 's performance to play games without controller , which will substitute Wii 's advantage.
I suggest Nintendo to convergent Wii 's play method and improve the controller to be smaller and convenient. Person could not only play it at home but also take it to outside.
It's abstract for the only child generation without brothers or sisters.

So far the main market of Video game is still on US, Japan, Europe. Even though no one doubts the Chinese game players population, but the game market in China is very embrassing compared with the global big ones like Nintendo, Sony, Microsoft.......

We sometimes say that Learning starts from "Copy" but the past 30 years China has expeienced the history of the video game market development. We are still little child and following the trend and copying the design ideas... what is wrong with us? Businees starts from creation not from business model. Are we lack of the creation gene in our culture? "Make Difference" is a popular word when we work in the global commpanies.

On the contrary, Nintendo Wii developed very less games software focusing on China customer. One point to avoid the idea copy, on the other hand it may also has big concern that the hack of Wii in China local grey market.

As already stated in previous messages, although Nintendo's strategy is really interuptive and change the name of game. Being creativity in a high-tech industry is surely very important, but without a strong support of high-technology, will Nintendo's success last long?

A sales volume report from Japan in Auguest of 2010 shows that the sales of SONY's PS3 has already surpass Nintendo's (please see below)

Weekly report (8.16-8.22)
1.DS - 45,221
2.PSP - 28,185
3.PS3 - 29,433
4.Wii - 18,185
5.Xbox 360 - 3,842
6.PS2 - 1,366

And 2010 sales report in Japan:
1.DS - 1,517,784
2.PSP - 1,329,664
3.Wii - 968,413
4.PS3 - 949,907
5.Xbox 360 - 145,124
6.PS2 - 55,921

Seems that the sales of PS3 catch up very quickly, also following by the launching of Micosoft and Laveno's similar product (Xbox360 & Ebox), will Wii still keep its success in the coming years sepecially after the 3D battle begins?

Actually, DS also belongs to Nintendo.
Now, from all indications, Nintendo's biggest future enemy may be Apple. Just as Nintendo'S CEO Iwata said: "Nintendo now considers Apple its 'enemy of the future.'"

So far, Nintendo has a singular focus as a games maker, while Apple seems to be taking a share from Sony in becoming a more generalized consumer electronics company. In coming future Apple will also continue to penetrate toward the territory of electronic games. Apple never lack of creativity, and moreover, it holds such a huge market appeal.

It's only a matter of time before the iPhone, iPod, and iPad catch up to or even surpass the capabilities of Nintendo's offerings unless Nintendo introduces new hardware, and soon.

So, for Iwata, it is definitely the time to seriously consider how to fight with Apple, except 3D, virtual reality, Nintendo need more innovation.

IGN test report for PS3 move concil, quite fun!

http://v.youku.com/v_show/id_XMjA0MjAwNDIw.html

Nintendo's success contributed to its launch of wii. The game changed the way we played video games. It gave you an virtual experience to play the game which is quite similar to the real way to play.

And it is a social game, you can play with your family, your friends~and easy to learn how to play.

Live to learn and learn to live. Nintendo's story tells us that what people used to ignor sometimes means great opportunity. Innovation is not always to explore new way but to find the exsisting way undiscovered.