Wii Encore

In: Business and Management

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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 also features a new controller referred to as the “GamePad” which is embedded with a touch screen. The system will be backwards compatible with the previous console, the Wii. Being that Nintendo has continued to be outsold by its competitors in 2010 and 2011, the Wii U is a smart move for Nintendo. Running another low-end encroachment (Wii U) could be Nintendo’s successor of the Wii. Rather than sustaining their current the technology, the Wii, by just making small incremental improvements, creating a disruptive technology could help Nintendo jump the curve and turn their current sales around.
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…...

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