Wii Encore Case
Wii Encore Case
EXECUTIVE SUMMARY There are many possibly factors that oculd explain why the leader in one generation did not become the leader in the next generation. First of all, there were ne and differential technologies in the game industry. In the console game industry, “generations” are defined by advancement of the underlying technology. Nearly all technological leaps from one generation to the next were marked by a change of industry leadership. Such as, the third generation (1888-1944) was dominated by Saga Genesis console whis was set firstly applied with a 16-bit microprocesors. And in the fourth generation, Sony introduced PlayStation, a 32-bit CD-ROM videogame machine which had more storage capacity and much lower costs. Secondly is the first mover advantage. The earliers the new technology is introduced, the more effective impact it will have on the industry. Although the companies applied with the similar type of technology, the first mover gained the perception as the dominant player. The first introduction of he 16-bit and CD-ROM can lead respectively the market in its generation like Sega and Sony. However, it doesn’t always affect it; if the competitors have a strong response, quickly to follow its advantage, the firs mover’s benefits would not last long like with the Wii. Thirdly is reading consumer desire. The victory of the Wii from the wireless motion-sensing controllers depends on the consumer desire. The consumer chose the lower performance product, Wii which had the wireless motion-sensing controllers even though Sony’s PlayStation3 and Microsoft’s Xbox360 were higher performing products. The consumer wanted to buy the user friendly products instead of over-techs. Sony was the exception to these factors mainly because of their intensive relationships with the developers, the backward-compatible technologies, the reasonable approach to prcing, and their relatively weak competitors.
Nintendo Wii’s innovative hardware has really
EXECUTIVE SUMMARY There are many possibly factors that oculd explain why the leader in one generation did not become the leader in the next generation. First of all, there were ne and differential technologies in the game industry. In the console game industry, “generations” are defined by advancement of the underlying technology. Nearly all technological leaps from one generation to the next were marked by a change of industry leadership. Such as, the third generation (1888-1944) was dominated by Saga Genesis console whis was set firstly applied with a 16-bit microprocesors. And in the fourth generation, Sony introduced PlayStation, a 32-bit CD-ROM videogame machine which had more storage capacity and much lower costs. Secondly is the first mover advantage. The earliers the new technology is introduced, the more effective impact it will have on the industry. Although the companies applied with the similar type of technology, the first mover gained the perception as the dominant player. The first introduction of he 16-bit and CD-ROM can lead respectively the market in its generation like Sega and Sony. However, it doesn’t always affect it; if the competitors have a strong response, quickly to follow its advantage, the firs mover’s benefits would not last long like with the Wii. Thirdly is reading consumer desire. The victory of the Wii from the wireless motion-sensing controllers depends on the consumer desire. The consumer chose the lower performance product, Wii which had the wireless motion-sensing controllers even though Sony’s PlayStation3 and Microsoft’s Xbox360 were higher performing products. The consumer wanted to buy the user friendly products instead of over-techs. Sony was the exception to these factors mainly because of their intensive relationships with the developers, the backward-compatible technologies, the reasonable approach to prcing, and their relatively weak competitors.
Nintendo Wii’s innovative hardware has really