Strategy Analysis of the console market: Sony, Microsoft or Nintendo?

0

Today we are going to begin a deep analysis of the videogames market. Being a really big and complex job, only one article is not enough: I will divide this document in many parts, hoping to attract your attention and make you happy to participate and send us your feedback.

Wii , 360 and PS3

Some numbers to help you in following the next articles.

Market size: “The global market in 2003 was over 21 billion of dollars” (Source: OECD), taking into consideration both pc, console, mobile and online gaming. Alone, the console segment is worth 15 billions of dollars.

Competitors: as we are going to focus on console manufacturers, we will consider the “big 3”: Microsoft, Nintendo and Sony.

The history so far: if you need to be updated on the whole story, I would suggest you to take a brief look at this link. In this analysis I will focus on the present.

The 3 competitors are struggling to obtain the leadership in the market, with (really) different strategies, big efforts and unbelievable mistakes.
The domination of Sony in the past 10 years seemed to leave no doubts on the name of the market leader for the next-generation, but the history teaches that every time new technologies and products are developed, especially in markets where the innovation is so fast, the reaction of the market is unpredictable (i.e. who would have expected such a superiority of Ducati in this MotoGP season, versus a real disaster for Honda and Yamaha?).

I don’t want to “spoiler” the result of my analysis, but if you are interested in the console market, you should know that this time Nintendo and Microsoft put a big effort in strategy, so to struggle with Sony thanks to differentiation and innovation, making the best use of their distinctive competencies.

In the next articles I will publish a deep strategy analysis of the console market, without forgetting any of the following aspects:
• Key success factors
• Competitive forces pressure
• Productive efficiency
• Differentiation
• Innovation
• Diversification
• Internationalisation

I think that this is one of the more interesting markets to be studied: dynamic, huge (and increasing), competitive (a lot!) …

Please stay tuned for the next article, where we will examine the “Key success factors of the console games marketplace”.

Romano Panzacchi

Comments are closed.