mitsuhide said: But what else could they do after WiiMusic and WiiFit....WiiSports2 no one will buy that once the Wii series is gone and they cant make anymore then it will turn into the N64/GC and just be another Nintendo console with a different controller. .... Yep dozens of ideas with a very small target audience and people who would rather do it in real life than on a screen in 'virtual reality'. |
This is exactly the type of thinking that makes disruptive technology dangerous to the leaders in a field. Looking at the book, "The Innovator's Dilemma", we find that disk drive makers on the top of the market knew how to make physically smaller disk drives, but the capacity of these drives wasn't enough to satisfy their target audeince, so they kept building large drives with higher and higher memory capacities. Meanwhile, small companies with nothing to lose developed the smaller drives with smaller capacities but found new audiences (eg. laptops instead of home PCs) to sell them to. When those audiences grew, the smaller companies made their drives better until they could match the capacities of the larger drives and eventually overthrew the big companies.
Now we have a similar situation: Sony offers all the same old advantages in order to try and keep its 120 million customers: better graphics, bigger hard drives, etc. Why would they want to waste their time on fitness games or pet simulators when they know there are 120 million people that will pay for a graphically enhanced Gran Turismo or God of War? Meanwhile, Nintendo only has 20 million faithful customers left in the home console market so it can afford to make a cheap system with weak graphics and sell it to a small, undefined audience.
As it turns out, just as in the disk drive industry, that small, undefined audience isn't quite so small after all. It's actually quite lucrative, but neither Sony or Microsoft could have justified a business plan based on selling consoles to moms or girls or lapsed gamers because Sony had to try and protect it's 120 million gamers and Microsoft had to try and steal those 120 million gamers away.