Videogame Consoles
Industry
Market Share in the
Videogame Industry


   67%                      Sony Playstation

                            Nintend...
1980s
 Family Computer (Famicom) was introduced
 in Japan in 1983

 Nintendo Entertainment System (NES) was
 introduced to...
Nintendo Family Computer
(Famicom)
Nintendo Entertainment
System (NES)
1980s
 Nintendo has introduced its first
 portable game console known as
 GameBoy in 1989

 Nintendo has become the leader...
GameBoy
1990s
 Nintendo has introduced Super Nintendo
 Entertainment System (SNES) in 1991

 Sony and Nintendo has entered into a
...
Super Nintendo Entertainment
System (SNES)
1990s
 Sony Computer Entertainment Inc. has been
 established as a R&D division in 1993

 Sony Computer Entertainment Amer...
Playstation (PS1)
1990s
 PS1 is introduced as a game console that
 is able to support the use of CD-Rom
 based games

 PS1 is introduced in ...
Business Strategies
   First mover advantage
   New technology
      Switching cost
      Lock in


   Worldwide marketing...
1990s
 Nintendo has introduced Nintendo64 in
 1996 in response to the introduction of
 Playstation

 Nintendo64 has become...
Business strategies
  network effect

  high switching cost

  lock in
Nintendo64
GameBoy Color
 Nintendo has focused on the handheld
 market instead and has introduced
 GameBoy Color in late 1990s

 Busi...
Game Boy color
2000s
 Sony has introduced PS2 in March of 2000

 Sony has penetrated the game console
 market and has become the market l...
Playstation 2 (PS2)
Business Strategy:
   Second degree price discrimination
  (Versioning)

  Backward compatibility

  Product differentiati...
Xbox
2000s
 First Video Game Console from Microsoft

 Xbox was launched in November of 2001

 Xbox was designed to be a console...
Features
  An NVIDIA graphics processing unit (GPU)

  An Intel 733MHz processor

  An internal hard drive

  An Ethernet ...
Xbox Live
  Play Xbox games online over the
  Internet with a high-speed connection
  Communication in real time during
  ...
Business Strategy:
  Designed for online game

  Superior system
2000s
 Nintendo has introduced GameCube in
 2001 as a sign of returning to the game
 console market

 GameCube is a game c...
GameCube
2000s
  Nintendo has introduced a hardware device
 known as GameBoy Player which supports
 backward compatibility of all t...
GameBoy Player
2000s
 Nintendo has introduced Nintendo Dual
 Screen (Nintendo DS) in 2004

 Nintendo DS is a portable game console
 that ...
Nintendo Dual Screen
(Nintendo DS)
Pepsi Edition (Japan)
New Nintendo DS colors
2000s
 Sony has introduced its first portable
 game console known as Playstation
 Portable (PSP) in March of 2005

 PSP ha...
PSP (PlayStation Portable)
Conclusion
 Each company uses different business
 strategy to approach the market

 Sony is the winner (67% of market shar...
THANK YOU!
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Videogame Consoles Industry

  1. 1. Videogame Consoles Industry
  2. 2. Market Share in the Videogame Industry 67% Sony Playstation Nintendo GameCube 15% Microsoft Xbox Others 15% 3%
  3. 3. 1980s Family Computer (Famicom) was introduced in Japan in 1983 Nintendo Entertainment System (NES) was introduced to the US market in mid-1980s Nintendo has captured about 80% of the market share in North America with NES
  4. 4. Nintendo Family Computer (Famicom)
  5. 5. Nintendo Entertainment System (NES)
  6. 6. 1980s Nintendo has introduced its first portable game console known as GameBoy in 1989 Nintendo has become the leader with first-mover advantages in handheld market
  7. 7. GameBoy
  8. 8. 1990s Nintendo has introduced Super Nintendo Entertainment System (SNES) in 1991 Sony and Nintendo has entered into a contract to develop the Super Disc in 1988 Nintendo is unable to release the Super Disc due to contractual and licensing problem Sony has the modified version of the Super Disc and is introduced in 1991
  9. 9. Super Nintendo Entertainment System (SNES)
  10. 10. 1990s Sony Computer Entertainment Inc. has been established as a R&D division in 1993 Sony Computer Entertainment America Inc. has been established in May of 1994 Sony has introduced Playstation (PS1) in December of 1994 in Japan
  11. 11. Playstation (PS1)
  12. 12. 1990s PS1 is introduced as a game console that is able to support the use of CD-Rom based games PS1 is introduced in America and Europe in September of 1995
  13. 13. Business Strategies First mover advantage New technology Switching cost Lock in Worldwide marketing Barrier to potential entrants
  14. 14. 1990s Nintendo has introduced Nintendo64 in 1996 in response to the introduction of Playstation Nintendo64 has become a failure due to the poor digital animation and audio quality of its game cartridges
  15. 15. Business strategies network effect high switching cost lock in
  16. 16. Nintendo64
  17. 17. GameBoy Color Nintendo has focused on the handheld market instead and has introduced GameBoy Color in late 1990s Business strategies: Network effect Backward compatibility
  18. 18. Game Boy color
  19. 19. 2000s Sony has introduced PS2 in March of 2000 Sony has penetrated the game console market and has become the market leader Sony has constantly gain control over the market while Nintendo has continued to lose its market share
  20. 20. Playstation 2 (PS2)
  21. 21. Business Strategy: Second degree price discrimination (Versioning) Backward compatibility Product differentiation
  22. 22. Xbox
  23. 23. 2000s First Video Game Console from Microsoft Xbox was launched in November of 2001 Xbox was designed to be a console with online capability
  24. 24. Features An NVIDIA graphics processing unit (GPU) An Intel 733MHz processor An internal hard drive An Ethernet port
  25. 25. Xbox Live Play Xbox games online over the Internet with a high-speed connection Communication in real time during games and set up chat with yours friends Download new stuff for your favorite games—new maps, missions, songs, skins, vehicles, characters, and quests
  26. 26. Business Strategy: Designed for online game Superior system
  27. 27. 2000s Nintendo has introduced GameCube in 2001 as a sign of returning to the game console market GameCube is a game console that is used to support its own proprietary CD format of games
  28. 28. GameCube
  29. 29. 2000s Nintendo has introduced a hardware device known as GameBoy Player which supports backward compatibility of all the previous Nintendo game cartridges Business strategies: Network effect Switching cost Lock in
  30. 30. GameBoy Player
  31. 31. 2000s Nintendo has introduced Nintendo Dual Screen (Nintendo DS) in 2004 Nintendo DS is a portable game console that is not compatible with the previous GameBoy series game cartridges
  32. 32. Nintendo Dual Screen (Nintendo DS)
  33. 33. Pepsi Edition (Japan)
  34. 34. New Nintendo DS colors
  35. 35. 2000s Sony has introduced its first portable game console known as Playstation Portable (PSP) in March of 2005 PSP has varies entertainment features include MP3, MPEG movie player, and wireless communication
  36. 36. PSP (PlayStation Portable)
  37. 37. Conclusion Each company uses different business strategy to approach the market Sony is the winner (67% of market share) Intensified compeition with the proposed introduction of PlayStation 3, Xbox 2, Revolution, as well as the future generation of handheld gaming device.
  38. 38. THANK YOU!

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