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Louie on 20 June 2016
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daredevil.shark said:
Louie said:
Neo and Scorpio mean new chances for Nintendo: Usually their console would've been outdated soon after launch but without traditional generation cycles things are different. The standard PS4 / Xbox One will keep getting games for at least 3-4 years because Sony / Microsoft made it mandatory to support them. So Nintendo can comfortably release a console that is equal in power to those machines without being outdated soon. Neo and Scorpio will be overshooting quite a large portion of the market (at least 50% of all PS4 / XO owners wouldn't even consider getting a console aimed at "4k" gaming) and Nintendo will be perceived favorably by low-end consumers who don't want the inferior version of a product but still don't want to pay premium prices.

Neo, Scorpio and VR are all aimed at the very high ends of the gaming market. Sony and Microsoft have given Nintendo enough room to occupy the lower end market segments by moving upmarket faster than customers can absorb the technological improvements.

It's de ja vu. Are you saying that NX should aim for standard PS4 / Xbox One market? Just like Wii U targeted PS3 / Xbox 360 market!!! Then it will be really bad decision. Because support for standard PS4 / Xbox One will start to decrease in the wake of new hardware and no developer is foolish to support a new platform which is notorious for third party games.

No, what I'm saying is that Sony and Microsoft could be overshooting the market again like they did with PS3 and Xbox 360. In that case a big number of consumers would opt out of purchasing the more expensive consoles and VR. And the Wii U never targeted the PS3 / 360 market. Same power /= same market.

In any industry established firms improve their products faster than customers can absorb the technological progress making room at the low end of the market for new entrants and "good enough" products. These " barely good enough" products will again improve faster than consumers can absorb the technological progess, thus disrupting the incumbent companies from below. That's the innovator's dilemma in a nutshell and has been studied with a sample size of over 300,000 companies across different industries.

Please note I used the word "could". I have no idea what Nintendo's strategy is and they could very well produce another Wii U. I'm just saying there's an opportunity for them.