This past Christmas season saw the release of the highly toted next generation video game consoles from Sony and Nintendo. Microsoft's Xbox 360 had been released a full half year earlier than their counterparts in an attempt to take market share early before their major competitors even released their systems. Each new console brings completely different capabilities and revolutionizes the gaming industry. The three competing consoles each have their own strengths and unique weaknesses. Ultimately, the buyer must choose between their personal preferences and decide which system they wish to purchase if they want to get into the next generation of gaming.
With the new releases, Sony, Nintendo, and Microsoft have all used different forms of advertising and highlighted their own strengths to attract customers. Additionally each company has already established a strong history within the gaming community and has used their previous ties to convince former owners to purchase their new systems. It is interesting now to see how the results of the various campaigns and releases have shaped the current video game market. Many reviewers contended that the Nintendo Wii had the most innovative new control system while the Sony PS3 represented the highest processing power of the three. The Microsoft Xbox 360 has established its title lead currently since it released earlier than the other two. MSNBC’s article and other early projections placed the PS3 as the dominant system for the future.
Since their releases, however, the Wii has proven to be the strongest of the new systems. Retailers are having an extremely difficult time keeping the system, with its gyro-based controllers, in stock. The Wii targets the casual gaming community and parents that do not wish to spend over $500 for a new system. The PS3, though, has met sharp criticism about the lack of titles at release and also the hefty price associated with the system. For my project, I am interested in exploring the various marketing techniques and decisions these companies are using to enhance their market share with their new systems. Since consumers have responded to the releases in unpredicted ways, it will be interesting to see how the different systems adapt their strategies to gain more customers. Additionally with the increased use of the internet, online gaming is becoming more and more prevalent. It is important that these systems offer titles that offer a vastly multiplayer dimension previously unseen with video game consoles. Additionally, many of the software developers have not created titles that fully utilize the capabilities of the new consoles. There are vastly untapped areas of power yet to be released. Until the games and associated required technology catches up with the processing powers of many of the new systems, gamers will still be attracted to their older counterparts. How should these manufacturers draw devoted customers to their new systems and maintain their market shares? This a critical question that I would like to explore with my topic being an avid gamer. Additionally, I recently entered into the personal debate as to which next generation system to purchase. I eventually settled on the Xbox 360, yet in the future I might make the decision to also garner the other two systems. Each have their particular strengths yet each has also have had difficulties in attracting and retaining customers. How these challenges are answered will greatly shape the video game industry for years to come.
Ono, Dennis. “Game consoles vie for next-gen supremacy.” MSNBC, November 17, 2006. February 27, 2007.