Kyros said: "The worst thing you can do in response to a disruption is attempt to copy it after the fact."
why? If Nintendo's legal department cannot stop them from creating a perfect copy. They would essentially have a powerful HD console with great media and online capabilities and the best gaming library AND Wii games could be ported within weeks(probably in higher resolution). All of this for almost the same price as the Wii.
So they would have the superiour product. A lot of people calling them copycats wouldn't change that. Of course there are two big ifs in all of this.
1) Will they be able to create competitive technology, I am sure making it work right did some work. 2) Nintendo's lawyers must be drinking some blood to get them ready for the fight right now if this was true. |
[...]
I am saying that Honda used the disruptive product to find a Blue Ocean (of outdoor motorbikes) and then moved upmarket to ultimately blow all established motorcycle manufacturers out of the market except for Harley-Davidson and BMW which barely survived. Harley-Davidson, who had all the advantages of brand, being a market leader in North America, was unsuccessful in attacking downmarket due to Honda’s superior business model. Also, Harley’s profits were coming from its upmarket. By attempting to go downmarket, it threatened their upmarket image. Harley had to retreat upmarket.
”So, you are saying that if Microsoft and Sony attempt to outdo Nintendo in the downmarket, not only will Nintendo’s superior business model win, but it will damage Sony and Microsoft’s upmarket?”
Correct. No one bought the Playstation 3 or Xbox 360 to play Peggle or other downmarket games. For quite some time, upmarket gamers are screaming at Nintendo for ‘destroying’ gaming. How do you think they will respond when Microsoft and Sony attempt to replicate Nintendo’s success in the downmarket?
”They will not be happy.”
Even companies that do not require profit for their game division, such as Microsoft, will struggle as their entire game division is dependent on the upmarket. Now imagine how Xbox Live and other Xbox 360 features will be if Microsoft goes downmarket.
”Oh my, Xbox 360 gamers will definitely NOT be happy.”
This is an additional reason for Microsoft to abandon the downmarket and remain upmarket. I believe Microsoft will attempt to fight for the downmarket while Sony will flee to the upmarket. But I doubt Microsoft will be fighting for the downmarket for too long before they retreat.
DISRUPTIVE LESSON #6: Combating the disruptor for the low tiers ends up destroying the brand for the high tiers.
[...]
http://malstrom.50webs.com/disruptivestorm.htm
“In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.” Hiroshi Yamauchi
TAG: Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.