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Killiana1a said:

Alrighty then! Lets get to it:

I. Overfishing of the Blue Ocean

Nintendo with the Wii hit an absolute diamond mine by tapping into the "Blue Ocean" of non-gamers, family-oriented gamers (children, parents and relatives), and lapsed gamers (gamers for whatever reason have not gamed in 1 to 3 generations). You can only keep a good secret for so long and both Microsoft and Sony are bringing their fishing trawlers with their mile long nets into the Blue Ocean. Next generation, Nintendo will not have all the prime fishing spots they did in the first 2 to 3 years with the Wii. Microsoft and Sony will be in the Blue Ocean from the get go.

What was once a Blue Ocean with a sole fishing vessel with a Nintendo logo and Mario's face on it is now accompanied by Sony and Microsoft vessels where fishing lines will tangle and red blood in the water will be apparent from land.

Pardon me for being blunt here, but do you understand what a Blue Ocean Strategy is?  If not, get hold of the book on the subject.  There is NOT one Blue Ocean you go into and that is that, and you overfish it.  What you do is you find new markets or create new markespaces out of a mix of multiple markets, so you don't hit a commoditization mode, which is bloody.  If you happen to see major players employing it as a strategy, the industry grows, because they target different groups.  What you said is only one phase.  You can NEVER outfish a blue market, because it consists of going in new areas.

Nintendo is doing this.  Did you forget the 3DS?  That is a Blue Ocean move.  Did you even think that Nintendo would do a 3DS before it was announced?  By the time others move into there, they will be into another market.  Nintendo HAS already moved on and the videogame industry has grown as a result.

Whether or not Nintendo is the top money grosser next generation depends on if they target the right clustering of demographics better than others.  For all people know, Apple could come out and be the top dog next generation doing gaming differently.  Or, even Google.  One thing that is certain is that the top dog doesn't tend to stay on top forever.  People may of got duped by Sony going two generations on top in a dominant form.  Newcomers into videogames (usually the 20s demographics folks who grew up on Playstation) think it is the norm, but it isn't the case.