Sega: NGP will succeed, PSP didn't fail

[Reasonable]

disolitude said:

ssj12 said:

He is right, the PSP isn't a failure. It successfully took over 30% of the handheld market from Nintendo which no other handheld in the history of handheld gaming consoles managed to accomplish.

This comment would make sense if Nintendo lost marketshare...but DS is their most successful handheld ever.  So PSP didn't take anything over from nintendo...The market expanded and PSP capitalised on that.

Technically they did lose marketshare.  I agree with you in principle the key element was an expanding market, and that volume wise DS did even better, but from a business perspective as Nintendo went from essentially 100% marketshare to less marketshare of a total bigger pot they did lose some.

Basically, PSP you would say by being in the market prevented Nintendo taking the whole expanded market available - hence the drop in marketshare.

Marketshare is the total set of potential customers and remains 100% even as the market expands, so it is possible to do better in volume sales and profits and lose marketshare at the same time - which is what Nintendo did.