Joelcool7 said:
Smashchu2 said:
Joelcool7 said:
I hear where your coming from. However what happens when the DS stops expanding the market? Nintendo is not a stupid company and they do know that Blue Ocean alone won't hold out forever. A DS will not continue selling well after a succesful PSP2 launches. Also how much more can the DS expand the market before something new is needed.
Now you could argue that Blue Ocean is working well and indeed the DS is making cart loads of profit for Nintendo. However for the first time in handheld history the competition is actually succeeding. The PSP is selling millions of hardware where GameGear/NeoGeoPocket only sold thousands a month or less. Then software for the I-Phone/I-Pod Touch is selling like hot cakes. Nintendo is loosing their edge on the market more with the DS then any other handheld in Nintendo's history.
Also not competing with the competition (Avoiding Red Ocean) is impossible when the competition starts using Blue Ocean as well. It was a way for Nintendo to expand its user base and launch a pre-emptive strike. But with Natal and Sony's motion controller and a new PSP on the way, its a fact that Nintendo will have to compete.
Your also wrong Iwata has already started talking about the next handheld denying features that have been suggested and even Miyamoto has talked about the next Wii. Fact is Nintendo is prepparing new hardware and the dillusion of non-competition and constant market growth will not work once all the competitors start expanding into one anothers territory!
In the end Blue Ocean worked but Nintendo will/can not stick to Blue Ocean for ever. You can't say okay the DS is expanding the market so lets just leave it for a decade while the competition provides the market with newer fancier consoles. Also Nintendo handhelds have always had very strong early adapter sales. If Nintendo chooses to launch a new platform they will have no problem doing so. Most DS owners will buy Nintendo's next handheld at launch or shortly after.
Also just to get a word in, The PSPGo was Sony's answer to Nintendo's DSi. The DSi and Lite were answers to Sony's 2000 and 3000 models. Fact is they have been competing with fresh hardware this whole time. If Blue Ocean were really Nintendo's only strategy then why do we have a DS:Lite , DSi etc...etc.... fact is Nintendo is using parts of Blue Ocean and Red Ocean strategies to make their decisions. But they are not strictly Blue Ocean or Red Ocean. They are using what works and are not stupid.
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Nintendo has never responded to a PSP release. Nintendo released the Lite in 2006 and released the DSi in 2008. The PSP didn't have new models until 2007. If anything Sony responded to Nintendo, not the other way around.
Again, you don't understand the Blue ocean Strategy and becuase of that, you can not understand Nintendo's strategy with the DS. You keep thinking Nintendo has to compete with Sony becuase Sony is somewhat successful in the handheld business. Of course, what you are advocating is the exact opposite of what Nintendo should do. Nintendo lost every time they competed with Sony. The Wii and DS are successful becuase they avoid direct competition. Nintendo should never compete with Sony.
You underestimate Blue ocean Strategies a lot. You can use them forever. The only time a Blue Ocean Strategy will fail is if someone else opens a new blue ocean (which has not happened yet) or the company gives up on it and competes. Since no one has tried to open up a new blue ocean, Nintendo is best off to stick to their Blue Ocean.
But here is what you don't understand. The point of the Blue Ocean Strategy is to expand the market to users outside of the industry. Example: When Henry Ford made the Model T, he wasn't competing with cars at the time, he was competing with horse and carriages. Cars at the time were luxury vehicles and were used for Sunday drives rather then to get around. The Model T was meant for every man. It was cheap to afford, it was easy to learn how to drive, and it was cheap to repair. This is how America got on the road. Sowthwest Airlines was not competing with traditional airlines. But they were competing with alternative. Flying uis faster, but less economical and less flexable then driving. So Southwest focused on making flights cheaper and with less hassle (things such as transfers and what not). These are blue oceans as they do not follow the industry norm. A DS that would compete would have high end graphics, no touch screen and can play movies and music. The DS has N64 graphics, has a unique touch screen and can not play movies (it can play music with the DSi, but that is a different story).
The reason Nintendo never has to compte is becuase they made a new market. Sony is not competing over the same market space as Nintendo is, so they have no threat. The only threat they do have is people not using their products. They have to keep growing the market and nmake more users. This is where the big money is at.
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Your only saying exactly what I said. Blue Ocean can't work forever. You said yourself it doesn't work if the competition also opens up a new BlueOcean. Microsoft and Sony have both said they will be openning Blue Oceans with Natal and the Wand. Whats to prevent Sony from coming up with something for the next PSP that will expand the market.
Realistically once everyone has a motion controller, once everyone has a touch screen then neither device are Blue Ocean. Instead they become Red Ocean because they are no longer occupying a niche they no longer are expanding the market. They are then competing directly with the competition.
That being said Miyamoto has said that the next Nintendo home console will revolutionalize the industry again. He said Natal and 3D were not big enough features to warrant new hardware he said Nintendo has something even bigger up their sleeves. I'm sorry but this sounds like competition to me.
Once you are competing with Blue Ocean it stops being Blue Ocean. Your example the Model T once all the manufacturers started building every man cars then Model T's were no longer Blue Ocean were they? SouthWest Airlines, once everyone started offering cheaper flights and economy class flights SouthWest was no longer Blue Ocean.
You can't use Blue Ocean for ever, once the competition starts producing Blue Oceans to compete with your Blue Ocean your Blue Ocean stops being a Blue Ocean. Also aren't you alittle concerned that with everyone trying to expand the market at all costs and reach non-gamers that us gamers will be left out. I mean seriously what will happen to gaming as we know it? It will cease to exist because everyone is trying to out do one anothers Blue Oceans.
If Nintendo remains a Blue Ocean company next generation and does not produce comparable hardware to the competition. Then for the first time since I was born I may not buy Nintendo's next console. Infact I can say the same about Microsoft and Sony if all three companies launch Blue Ocean hardware and ditch our controllers then I will be sceptical at buying any next gen platform. Infact I might go PC (Shutters at the thought)!
Anyways I'm pretty sure the next Nintendo system even if it has some new controller will sport HD graphics and compete with the competitions hardware. Just as I expect a new handheld really soon that is high enough quality to compete against PSP2.
Lastly many are saying PSP2 will have a multitouch screen similiar to the I-Phone/Touch and DS. Once that happens DS is no longer Blue Ocean, it isn't offering anything non-gamers will not get from the competition. Essentially the DS will become a direct competitor with PSP2 regardless of what Nintendo chooses to believe. So if Nintendo is to remain Blue Ocean they need to create new hardware that offers non-gamers and gamers alike something new that the competition doesn't.
Also I may not be an expert on Blue Ocean but I do know that when the competition offers every feature you do you are no longer Blue Ocean. I mean seriously the Wii next year is no longer Blue Ocean, come PSP2 the DS will no longer be Blue Ocean. They will be competing whether you or Reggie like it or not!
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That entire mess was honed in one one sentense saying how one might stop a Blue Ocean. Note that you can kill your new market by competing. Everything you have said is based on Red Ocean ideas, something that is definatly not what Nintendo wants. As of right now, we have no idea what a PSP2 will look like. However, Nintendo is not going to destroy their new market becuase they think Sony is targeting it. Heck, Sony has no idea what Blue Ocean Strategy is and probably thinks it's some mombo jumbo that Nintendo made up.
I order to make a Blue Ocean product, the company has to redesign their entire process of idea making and manufacutring. The focus of the book really isn't what a Blue Ocean is, but how you go about creating one. There are a lot of problems with it such as rejection from partners (like third parties), to your Blue Oceanm being a puddle. Sony is a game company second. They aren't going to change their entire process just to do something they don't agree with. The other problem was Nintendo's Blue Ocean was two fold. First, it used features like the touch screen, but they drove sales though software like Brain Age and Nintendogs. Sony isn't the best at making games. All of their first party games are very weak, and sell anyware from 1 million to 3 million, not anything that would be a threat to Nintendo. Heck, their idea of an expanded market game is Eye Pet, which looks like a hollow Nintendogs.
Anyway, Nintendo is going going to sacrifice their market just becuase Sony might make features that copy the DS, when very few companies can make games like Nintendo. Remeber though, that third party developers would have to change their process too if they wished to make Blue Ocean games
Also, read some Malstrom
