Nintendo Case

1. What factors do you think enabled Sega to break Nintendos near monopoly of the U. S. characterisation gamey console market in the late 1980s? There be a few different factors that allowed Sega to break Nintendos near monopoly of the U. S. mental picture game console market. First, the introduction of a 16-bit governing body was massive. This was double the true 8-bit systems that were out and consumers were anxious to try it because of the enhanced graphics.Second, Sega do their vernal system reversive compatible with its 8-big Master System games meaning that anyone who already brace these games could play them on the sensitive system as well as any of the new games that were released. Sega as well produced their games in-house which saved funds. They foc utilise their attention on increasing unit sales to drive game sales kind of of focusing on making a large profit on consoles.The combination of in-house games and slight focus on consoles allowed them to have over foursome times the amount of games as Nintendo by the end of 1991 and people last flocked to where the games where. 2. Why did Nintendo choose to not make its video game consoles reversive compatible? What were the advantages and disadvantages of this strategy? Nintendo chose to not make its video game consoles backward compatible because this meant that consumers would have to dangle money on a new console as well as new games and thus execute more revenue.The advantages to this were that they could possibly make a lot more money because of the necessity to sell new games with new systems. The disadvantages is that many people were not interested in having to spend extra money on new games if they were able to purchase a new Sega console that allowed them to use out of date games as well as new ones. This lead to Segas top executive to surpass Nintendo in sales. 3. What strengths and weaknesses did Sony have when it entered the video game market in 1995?When Sony entere d the video game market in 1995, it was one of the first 32-bit systems, and it had a decent amount of developer support. Although Sony did not have much of an human body in the video game market, they did have a huge brand verity in other consumer electronics making it fairly easy to gain a following. Because of their previous success in the electronic market, many developers were excited to hop on the bandwagon to develop games for Sony which enabled them to have 800 game titles by the end of 2000. 4.What strengths and weaknesses did Microsoft have when it entered the video game market in 2001? When Microsoft entered the video game market in 2001, they had the advantage of already having some experience in the online frolic world because of the line of PC-based computer games they had already produced. One downfall they did locution however was a lack of experience in the arcade environment that Sega and Nintendo both had by this point. A major strength that the Xbox focused on was having more power than the PlayStation2 by liberty chiting more memory and a faster processor.One other huge advantage that Microsoft had was the price point they offered the Xbox at originally. They marketed it at $299 which was significantly less than its actual production addresss, and also less than competitors consoles. They also had the advantage of being able to spend $500 million on advertising which is more than they had ever spent on any advertising campaign, and more than other companies of its type could spend. Lastly, they mean to produce 30-40 percent of their games in-house to save on licensing and external costs.5. Comparing the deployment strategies used by the firms in each of the generations, can you identify any timing, licensing, pricing, marketing, or distribution strategies that appear to have influenced firms success and failure in the video game industry? Atari took numerous mea originals to make sure that only classic games could be played on t heir consoles which were a main reason for their huge success. Nintendo and Sega spent $15 million in advertising and promoting the new systems.Nintendo made games for in-house systems as well as licensed third-party developers through strict licensing policies, and they also restricted the volume and pricing of the consoles which made the company very profitable. Sega mainly produced games in-house which allowed them to drive game sales and software developer royalties, pushing them ahead of Nintendo. Philips introduced the near expensive console to date starting at $799 which ultimately wound their sales. They had to decrease the price to under $500, but it was too late. They would not infract technical information about their system making software tuition difficult.Because of these strategies they did not last long on the market. When Sony entered the market, they entered relying on their brand image to support them and getting support from numerous game developers. Later, Sega lay downed the Dreamcast around the alike(p) time that Sony launched the PlayStation2. Sega got a head start on sales by launching around the holidays, but still did not hit gamy sales because of the price point. Even though they ended up falling the price, Sonys launch of the PlayStation2 only a few months later blue any hope for the Dreamcast due to its 128-bit system as opposed to the handed-down 32-bit.Nintendo decided to wait on the release of their 128-bit system because they did not offer a backward compatible system like Sony and did not destiny PlayStation2 sales to hurt the release of the GameCube. Although they targeted different demographics, they wanted to be sure the launch was successful. Microsoft was also launching the Xbox around the same time. They chose to launch it at an extremely low price point that was actually below the cost of production to make sure it hit the market hard. They also chose to launch around the holiday season to get as many sign sales as possible.