relevant for this work because they form, together with Nintendo, the competitive environment in which this narration is set. It would not be beneficial for this work to start narrating the facts before these competitors even existed. As illustrated in the above chart “Global sales figures for each generation”, starting from the fifth generation , in the year 1994, we witness the entrance in the market of a new player, Sony, that with its model PlayStation is capable of taking and early lead and then transform that advantage in a solid market leadership position. All of this to the detriment of Nintendo64 by Nintendo, a company that was market leader up until this generation. Nintendo, with its fifth-gen console, did not intend to switch to a disc- based technology, cheaper and with greater capacity, and instead decided to stick with the Rom cartridge system, a much more expensive one. Figure 9: Fifth Generation Consoles [From left to right: the Nintendo 64 and the PlayStation] [Source: Wikipedia.org; Telegraph.co.uk] Later in the year 2000 during the sixth generation , the market leader Sony launches its new console called PlayStation 2 while Nintendo unveils its GameCube. An interesting fact about this generation is that, a year after Sony’s launch, the great corporation Microsoft enters the industry of gaming consoles with its model called Xbox. This new player though doesn’t quite manage to achieve remarkable sales results. The Xbox console faced many struggles at launch and this lead Microsoft to decide to implement a price cut on their device to make it more competitive. In the meantime, Sony was crushing records after records with its PlayStation 2 that, still today in 2014, holds the record of best selling console ever. The third player Nintendo, decided to launch a model called GameCube following a more conservative
29 vision that did not intend to offer the possibility to also play DVDs and audio CDs like the competitors’ devices. This generation ended with Sony managing to keep the market leadership position while Nintendo and Microsoft struggled in selling their devices. But things were about to change for Sony since Microsoft already had a new and aggressive plan to attack the Japanese leader in the next generation. Figure 10: Sixth Generation Consoles [From left to right: PlayStation2, Xbox, Nintendo GameCube] [Source: Wikipedia.org] The seventh generation started in 2005 with Microsoft anticipating by a whole year the launch of the competitors’ devices with its brand new Xbox 360. People at Microsoft worked around the clock to launch this model before the competitors, hence taking an early market lead in the hope of catching a lot of demand before the competitors. The Xbox 360 was an impressively successful model, it had a captivating design combined with top performances in terms of hardware. Many of the customers didn’t want to wait one year to buy a next-gen console and therefore switched to Microsoft, which could also count on great third-party developers support. A year after, Sony and Nintendo launched respectively their models
- Winter '18
- Wii, Video game console, Nintendo, Nintendo Co.