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http://nintendodpad.com/Welcome/News/Entries/2009/8/25_Why_Nintendo_need_not_sweat_Microsoft_or_Sony.html

Tuesday, August 25, 2009

 

 

With the reveal of motion controls at E3, and price cuts from Microsoft and Sony, many are saying Nintendo might be done. Many are trying their best at saying that right now with the way things look, Nintendo should be worried. We are here to tell you that even with price cuts and new motion controls, and with the gaming press suggesting otherwise, the Wii will be a hard one to take down.

 

Many gaming press and analyst sites around the internet seem to think that motion controls are the main reason why the Nintendo Wii is actually selling as much as it is. While this may be true, a big part they are forgetting is how motion controls are just an easier way of controlling what is being played on screen. Ease of use is one of the biggest factors that separate the Wii from the Xbox and Ps3. This factor seems to be hugely over-looked, but it does seem like Sony and Microsoft are catching on. So should Nin

Why Nintendo need not sweat Microsoft or Sony

tendo be worried? The answer is no.

 

With Nintendo following the Blue Ocean Strategy so closely, we have to assume that they know how to handle imitators. Ease of use with the Wii remote is being copied, will be available on the Ps3 and Xbox, and will allow new gamers to play on the hd consoles. This will happen, but what Sony and Microsot don’t know is that following the disruptor in a blue ocean isn’t as easy as it might seem. Sony and Microsoft have many barriers to face in this blue ocean, but there are a couple they should really be looking at.

 

The first is one we see all the time from other companies, but rarely ever take notice of. Brand loyalty. This attribute for a company is very important, and being the first to value innovate in a blue ocean brings with it very loyal customers. It is very hard for a competitor to go into a blue ocean and face this barrier as it is very hard to change the perception of the buyer the value innovator has created. Brand loyalty, or “brand buzz” is a hard barrier to cross as usually big budget marketing will not even work. Apple is an example of a company with “brand buzz”, and Nintendo seems to be garnering this same type of following. This is bad for Sony and Microsoft as loyal buyers usually dismiss new products in the same market from imitators.

 

The second barrier and probably most important barrier to cross is the brand image Microsoft and Sony have already established. Not only do the public view Microsoft and Sony differently than Nintendo’s Wii, but the whole industry does, from the gaming press to third party developers. The hd consoles are filled to the brim with avid core gamers that actually hate the Wii just for being different. This mentality will actually turn against Microsoft and Sony if they try their best at turning Nintendo’s blue ocean red.

A major shift in who is being targeted by Microsoft and Sony could put an invalidation on their current business model and could potentially destroy their current userbase, core gamers.

 

Regardless of how successful Microsoft and Sony are at pursuing Nintendo’s blue ocean, Nintendo can change everything again just by looking at the shift in value curves that the market makes. This will give Nintendo clear views on when to pursue another blue ocean and abandon the blue ocean they have created that has turned red from competition.

Nintendo will know this when Microsoft and Sony start becoming more like Nintendo, and less like themselves.

 

As you can clearly see at this year’s E3, Nintendo wants to keep this blue ocean theirs for a very long time. You may ask, “how will Nintendo do this?”, and I tell you to look at peripherals. Look to what the balance board has done, what MotionPlus is doing, and what the Vitality Sensor is going to do.

Keeping it fresh in a blue ocean makes you a moving target for competitors, and although Sony and Microsoft are pros at putting together good products, we expect the Wii to be the hardest target yet for both companies to hit.

 

==> I completely agree with the article

Wii is far from being dead

and ninty can drop the price at any moment



Time to Work !