Case%20Wii - Consoles Wars: Nintendo Strikes Back Once the...

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York University Professor A.Rusetki 1 Consoles Wars: Nintendo Strikes Back Once the undisputed leader of home video gaming, the Japanese giant Nintendo received several severe blows over the past two decades. First, Sony entered the market with its PlayStation and ripped away a huge portion of Nintendo’s share. When PlayStation 2 has been introduced, Microsoft followed with its Xbox console, stealing even more of Nintendo’s sales. New entrants added a lot of power to once basic devices. And following rivals like Microsoft and Sony can be a difficult task even for a veteran like Nintendo, who was among the pioneers of gaming console industry back in early 1980s. By the end of 2005 many analysts dismissed Nintendo as a “has been”. Figure 1: Installed gaming consoles worldwide But as it often happens, rumors of Nintendo’s death were “greatly exaggerated”. On November 19, 2006 Nintendo was all ready to enter the new phase of “consoles war” by launching its Wii (read “wee”) system. This is a so-called “7 th generation” video console to rival Microsoft Xbox 360 and to challenge PlayStation 3 (PS3) that was scheduled for launch just two days ahead of Wii. The war promised to be fierce. The video-game consoles industry appeals to a large population of enthusiasts who are willing to pay significant money to play the “latest and the best”. Over the years, both Microsoft and Sony developed a huge base of loyal fans, mostly young male adults with sufficient funds to afford expensive hardware and games at $50-$70 a piece. The size of this market is estimated to be $16 billion. With just three players in it, any shift in balance means serious money. Microsoft has a significant advantage over the two rivals as it launched its new generation Xbox 360 a year ahead of the competition. This allowed to capture attention of gamers who wanted higher performance than provided by older PlayStation 2 and GameCube. It is estimated that 10 million Xbox 360s were sold before newer PS3 and Wii hit the shelves before Christmas 2006. Microsoft was ready to protect its advantage, and announced the launch of a stripped down cheaper
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This homework help was uploaded on 04/08/2008 for the course ADMS A83925 taught by Professor A.rusetski during the Winter '08 term at York University.

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Case%20Wii - Consoles Wars: Nintendo Strikes Back Once the...

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