Xbox vs Playstation vs Nintendo in gaming consoles

Résumé du document

Unlike the PC market, the console manufacturers are not as numerous and diverse. Moreover, most actors are both equipment manufacturers and suppliers of programs. In 2001, the global market for game consoles has risen more than 20 billion dollars. The story seems to have proved that the market cannot accommodate more than 3 major players simultaneously. What this last decade tends to prove given that rivals Sony, Microsoft and Nintendo ousted Sega by market laws and that the video game market is saturated and tightens around these three actors.

Beyond the three major video game actors we can speak of a market tending towards saturation. A trade and marketing war between them since the launch of the Wii, Xbox 360 and PS3, and whose main strategies will inevitably get sector diversification. If the quasi-monopoly of Microsoft in the computer field may be sufficient to ensure returns on investment in its video games industry and game console, Nintendo has a loyal customer for its expertise and its virtual world, which remains the oldest among these three. But while the PlayStation 2 accounted for more than half of revenue, Sony's latest version, the PS3 would require the business press by at least 50 million copies sold so that Sony could get a first return on investment.

"A video game console is an interactive entertainment computer or modified computer system that produces a video display signal which can be used with a display device (a television, monitor, etc.) to display a video game." (http://en.wikipedia.org/wiki/Video_game_console)

Moreover it could be decline into consoles that plug into monitor to display the game or on smart phones screens which are easily transportable.
Forecast for 2010: Nintendo Wii, Sony Playstation 3 and Xbox 360 will takes off due to important innovations in terms of graphic and technologic development.

Extraits

[...] It is the Nintendo Wii (and also the Nintendo DS). Nintendo has clearly demonstrated that it is possible to come back without seeking at any price to compete on the same field. The Wii is a great success but as we said it before, the technology does not wait and each company has to work hard to stay in the game. Microsoft is actually creating a similar console but more sophisticated and it can be a new shift in the hierarchy. [...]

[...] Corporate Level Strategy: Nintendo is specialized in game console it means that does correspond to a dominant business firm. Consequently 70 to 95% of its revenues come from its principal activity. Core competencies Nintendo is open up in term of game console thanks to huge resources and global networking to promote their product which is inimitable make the console desirable. Conclusion Whereas Microsoft and Sony developed a strategy based on the console features for a gaming experience more realistic, Nintendo focuses its strategy to revolutionary joystick: the Wiimote. [...]

[...] Company has also distribution centers around the world. Inbound logistics, operations & outbound logistics: Company manufactures consoles in Asian countries but some of the Wii games locally. iQue Ltd., a Chinese joint venture between its founder, Doctor Wei Yen, and Nintendo, manufactures and distributes official Nintendo consoles and games for the mainland Chinese market, under the iQue brand. Marketing & sales: The company has three products: consoles, handhelds and software games so it is 3 more time source of revenue if something breaks. [...]

[...] Actually we saw it with Nintendo. At the end of the 90's, Sony had taken the power and Nintendo was in danger but instead of doing like Microsoft that has clearly defied Sony on its field, Nintendo has decided to use an alternative way to come back stronger. With its strategy of differentiation, Nintendo has clearly now taken the power in comparison with Microsoft and Sony. What is necessary at this time to predict a success? - Propose a new concept, an alternative. [...]

[...] The PlayStation 3's design was aimed at the high-end market as well. Sony chose not to follow current design trends and adopt the color white for its consoles like its competitors. Instead, similar to its television sets, Sony opted for a glossy black finish. Also unlike its competitors, Sony designed a box for PS3 that's even larger than its predecessors. Both Nintendo and Microsoft made their latest offerings smaller than previous systems to appeal to the contemporary aesthetic. Another difference in design is the PS3's rounded dome bulging from its body, as compared to the Xbox 360's concave shape that slims toward the center. [...]