Good Example Of The Problem Case Study
Video Game Console Industry in 2012: The Next Round
In 2012, the market for video games consoles took a remarkable direction. Nintendo arose as a leader in the market in the 7th generation of the video games with its Wii console. In this period, there was no any firm that had achieved dominance in the market. The case study provides an insight into the history of competition in the gaming industry and investigates factors that contribute to success. The dynamics of the video games market had changed to a great extent by 2012. The balance of power shifted from console makers to the suppliers, users playing the video games on mobile devices and a remarkable growth of online game playing. Nintendo, Microsoft, and Sony are the foremost players, and they are searching for the best strategies that will help them to cope easily with the new market.
The dynamics in the market had changed in 2012. The competitors had to look for ways into which they could fit in the market. Microsoft and Sony were reluctant to release a new product and took advantage of the situation to learn the dynamics. Previously, Nintendo was in a comfort zone since they had enjoyed a moment in which they dominated the market. Nintendo had won the competition because of their higher unit sales, but they failed to win over market dominance because of the stiff competition faced from Sony and Microsoft. When Nintendo launched a new model that advanced the Wii console in 2011, Sony and Microsoft countered by releasing Sony’s Move and Microsoft’s Kinect respectively and this affected the Nintendo as they encountered a massive decline in Wii sales.
Nintendo faced a stiff completion from the rivals because it failed to plan for the future. The competitors had realized that consoles were developing into multifunctional home entertainment platforms and embraced change. Nintendo could have put necessary measures to come up with a new innovation that matched the needs of the market.
Nintendo could have also eliminated the casual video games players because of the changing market dynamics. The users shifted their focus to video games that were supported by multifunctional devices like PCs, smartphones, and tablet computers and avoided casual video games. If Nintendo had been fast to track the development, they could have introduced an innovation that could fit the needs of the target market.
Nintendo also failed to analyze the dynamics in the market until they were shocked by the decreased popularity of the Wii console. The strategy to track the progress of the rivals and allow them to launch a new innovation first could also work to their advantage. Since they were the first to launch a new model of their game in 2011, their competitors advanced their innovation and defeated them in the competition.
Nintendo could improvise a strategy that will support the introduction of a product that could meet the expectations of the market. As revealed earlier on, the focusing was shifting from casual video games to playing games online, on mobile devices and from console makers to suppliers. A new generation of video games was expected to support unique features and capabilities. Nintendo could come up with video games that had the ability to be used as movie playing devices, storage entertainment content and the ability to download. This could break the tradition of the specialized gaming machines.