| libellule said: "Brand loyalty is nearly non existent," ==> I dont think so ... European people are buying PS3 because of the brand loyalty, Same for the Japanese people Of course, Will sell a lot more than PS3, but if u look at Xbox360 sales rate in Europe or japan ... u understand that brand loyalty is very important. A new comer, like microsoft, has still some problem to sell his console, particularly out of america. |
Bunk. The notion of brand loyalty is mostly bunk. As Rolstoppable stated, brand loyalty will move a few million systems to a small group of diehard fans, but the large (LARGE) majority of consumers could care less. Look at the Japanese sales charts for the early to mid-90s. Nintendo absolutely owned Japan back then, routinely doing 80% or more of the hardware + software sales between SNES and Gameboy. Yet by the late 90s, Nintendo was getting killed, killed by Sony's new Playstation. What happened to all that brand loyalty to Nintendo? Conversly, look at how dominant Sony was in Japan just a few years ago. The PS2 completely carried the market, doing a large majority of sales. But today, DS + Wii sales are routinely outdoing Sony's products 5:1. What happened to the Sony brand loyalty from, say, 2004?
And what about the legions of Sega fans that we had in America and Europe during the Genesis/Megadrive days? Their "loyalty" to Sega didn't stop millions from swapping over to the Playstation once it became obvious that Sega was failing to provide the service they wanted. Or outside of video games, what happened to all those Walkman users from a few decades ago? Their brand loyalty didn't stop them from swapping to superior products (like the ipod) when they came along. Ditto for Americans and Japanese cars; once it became obvious that Ford/GM/Chrysler didn't have the best products, "brand loyalty" and "Made in the USA" disappeared pretty quick.
Consumers buy products, not companies. Brand loyalty does have a sway over some, but only a minority of the market.
End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)







