Wii Disruption Strategy

[solitanze]

If this has been covered already, feel free to LOCK this thread.

 

I was randomly browsing the internet and stumbled across these articles, detailing Nintendos current business model and why they have a better chance than ever to win this current generation of console wars:

 

 

http://thewiikly.zogdog.com/article.php?article=34&ed=3&p=1

 

http://thewiikly.zogdog.com/article.php?article=42&ed=4

 

ENJOY!

[blender]

not interested in the articles. but other stuff covered there is well written. Added to favourites

[Smiter]

Hm, thanks for the links. Good read.

 

I was surprised to see there was something more to the "Wii" name:

 

The name Nintendo means ‘luck from Heaven’. The name Revolution means ‘overthrow of a ruler’. People still ask, “Why didn’t they just keep ‘Revolution’ as the name of the console?” Aside from the obvious reasons (already trademarked, internet searching for ‘wii’ is much easier to find the console than ‘revolution’, etc.), Nintendo did keep the ‘Revolution’ name. They simply combined Nintendo and Revolution which comes out as ‘Wii’. In Kanji of the old Japanese (19th century and earlier), the name ‘wii’ can literally mean the ‘overthrow of the gods’. Anyone well educated in 19th century Japanese literature or earlier will pick up on the word.

 

Very, very interesting...

 

I definitely think Nintendo's strategy could work. Maybe not completely dominating the PS3, but it could make Nintendo a very serious contender in the home console market.

 

We know Sony are a little worried because they tried to adopt the motion sensing (to a pad design which just doesn't work since it's not as flexible as the Wiimote), and they're also taking the Virtual Console idea. Sony are focusing an awful lot of attention on a competitor that is "outdated".

 

The only reason Wii can stand a good chance of succeeding is because of the massive success of the DS. Without the DS touch screen being embraced and associated with innovative games, people may not have accepted the Wii's motion sensing.

 

The complication with this strategy could be the brand loyalty. You know, people who only stick to one console - this industry breeds brand loyalty like no other. PlayStation is a very strong brand, despite how Sony has f**ked up with their planning for the PS3.

 

Personally, I hope the disruption strategy works. I'm kinda sick of the path games have been taking, it's getting harder and harder to innovate when you can only use the same interface. The game experience stays the same, you're just twiddling with analog sticks and pushing buttons. It's starting to stagnate.

 

The market's definitely ripe for a new way of playing games.

[raven_blade2006]

I read that. Its a good article, hopefully it all works out for Nintendo.

[fukudasolokomalakikenanze]

Very good read, I really hope things work out for Nintendo. But suppose their strategy fails, do you think they'll merge with Microsoft anf make a new console like the Nbox720, or would they just stick to being an exclusive third party for Microsoft [theres no way they'd develop for the benefit of Sony]?

[david.dakota]

fukudasolokomalakikenanze, you're very wrong. If, and its a big IF, Nintendo do not make a success of the Wii they are unlikely to 'merge' with Microsoft - although MS is constantly looking to buy the company, Nintendo is keen to stay independent, and is infact continuing to re-purchase its own shares to help stop any unwlecome takeover bids.

[Teppo Holmqvist]

Seriously, Nintendo has warchest of 8 billion dollars*. They could take two Xbox like flops before they would be forced to take a loan or liquidate assets (which currently have networth of 2 billion dollars).

 

* Which is, ironically, also more than Sony has in reserves.

[BlueStar]

Those articles are great, thanks! A really well written and though out look at Ninty's strategy.

[The Lillster]

I found the article that intresting that I decided to make another topic about it. :p

[Sariachan]

I'm interested, I'll read these articles later.

Thanks for the links!

[Kurtle Squad]

"Once upon a time, way back in the 1980’s, a company became number one because its products meant ‘fun’ to young people. Then, in the 1990’s, a bigger company with a bigger brand name and bigger budgets took away the number one spot. Fortunately, that first company also had another line of products that let it remain popular and profitable. This company used that threat to reconsider its strategy, and think how it could regain overall leadership. And this is what it decided. It would redefine its own business, and expand its market beyond current core users. Could this strategy work? Well, we already know the answer. The answer is yes. Because that first company, Pepsi, has returned to number one in its industry displacing Coke. Pepsi stopped asking, ‘How can we sell more cola?’ Instead, it started asking, ‘What else do people want to drink?’

 

“Today, Pepsi is number one in bottled water. It is number one in sports drinks. It is number one in health drinks. And, of course, it remains number one in the snacks business that it used to maintain profitability while they executed their disruptive strategy.

 

“But, I begin with a story about Pepsi because it demonstrates how thinking differently, and holding strongly to your strategy, can disrupt an entire industry…“

 

I've always loved that speech; it's awesome.

[YouCaughtALurker]

Is it sad that the Pepsi speech gave me goosebumps?

 

â€But if all you want is next generation, you are in the wrong place because what you see from Nintendo is not just what’s next. Instead, it is what’s absolutely new.

 

What we’re unveiling is the next leap in gaming to a place where gaming is no longer about the looks, it is about the feel. Where it is no longer confined to a few, it is for everyone. And most of all, the next leap is not about what you see, because what you see is not always what you get.â€

 

“The next step is about playing because playing is believing.â€

Reggie Fils’Aime at Nintendo’s Media Briefing E3 2006

 

Get in there Reggie my son!!