Wii Encore Case Analysis
Since 1983Nintendo has continued to introduce game consoles to the gaming market starting with Famicon in 1983 and more recently the Nintendo Wii in 2006. They have focused on keeping the platform prices low but also offering the consumer high game quality as well as image quality. Nintendo has been associated with popular games such as Super Mario Brothers (1985), The Legend of Zelda (1987), and Metroid (1987).
Since the release of the Nintendo Wii in 2006, famous for the introduction of motion-censoring controllers, Nintendo continued to outsell its two competitors, Sony PlayStation and Microsoft Xbox. It was not until 2010 that both of Nintendo’s competitors launched their version of motion sensing controllers. This was the beginning of Nintendo’s fall in sales compared to Sony and Microsoft.
Recently, Nintendo had a press conference about the release of their new console called the Wii U. The Wii U console ...view middle of the document...
The gaming industry has five to six year “generations” of introducing new technology to the market. Since the Wii was released in 2006, Nintendo is looking to release the Wii U in the fourth quarter of 2012 (6 years later). Running another low-end encroachment will be a good move on Nintendo’s part because encroaching on the low end of the market will introduce the technology and then they can gradually improve features and this will move Nintendo upward in the market. Being that Nintendo has a well-established name in the market they should have no problem introducing this technology to the consumer. Nintendo has had more of a casual gamer audience so running a high-end encroachment could harm the potential of sales. Right now Nintendo’s pricing strategy has worked for them, however they should consider raising their prices due to the new advanced features that are included in the Wii U. This could send a message to consumers that they have improved features to compare with the higher end features of the Xbox and PlayStation. Nintendo’s Wii game console is sold for $100-$200 less than its competitors so maintaining the pricing strategy could place them in the casual gamers segment. Nintendo could also diversify their profile by attracting the more “hard-core” gamers who look to Xbox and PlayStation for the more action packed gaming. All of these factors are factors that Nintendo should consider now that they are looking to release their most advanced platform yet.
Wii has been associated with the lower-end of gaming consoles however when it was first introduced sales soared due to the new technology of the motion-censored controller and added value to the new and improved Nintendo brand. The Nintendo Wii U is more advanced than any of its previous consoles launched and by launching the new technology of the GamePad, Nintendo could possibly add value to the product as well as its name. Sony PlayStation is associated with its capabilities of high-end features such as media streaming and its blue-ray DVD player and Xbox is associated with the sharp imaged, action packed gaming, so by introducing the touch screen controller the Wii can help boost its value compared to its competitors and their technology released since the Wii in 2006.