of the Assignment] of OF THE ASSIGNMENT] Overview Console gaming has shown an exponentially rising trend in the recent years. Gamers, for the sake of their gaming needs and for the expansion of their gaming aptitude and experience are highly inclined towards gaming consoles like Xbox 360, Play Station 3 and Nintendo Wii. It is an established fact that Nintendo solely concentrated on the gaming industry since its inception. On the other hand, Sony and Microsoft are reputable MNC’s. They also noticed this lucrative market and entered the gaming industry in 1991 and 2001, respectively (Bellis, n.d. )(Thurrott, 2000).
There aren’t any doubts that gaming consoles of Sony and Microsoft have their own share of the market but still Nintendo Wii holds the lion share. Nintendo Wii established and sustained its share during the time period (from 2007 to 2009). In order to assess the future strategic plans of major competitors (Sony and Microsoft) and to ascertain how these competitors will react in future to the market success of Nintendo Wii, a competitor analysis according to the four-part framework, proposed by Michael Porter, is shown below: Competitor Analysis (MICROSOFT XBOX360) Strategy Focusing on the recent developments of Microsoft, it can be easily said that it took a Horizon 2 Approach (Wikidot, n.d. ).
Stretching its legs from Operating Systems and Computer Software to Gaming Consoles has been a risky venture with a hefty initial cost. However, a sound financial base and a strong marketing strategy ensured Microsoft a sound ROI on Xbox360. Objectives As far as business unit goals are concerned, Microsoft wants to monopolize the gaming industry. With a tremendous initial investment and a large skilled workforce at its disposal, Microsoft would offer a complete range of gaming solutions to its customers. Assumptions Microsoft assumes that because of its positioning, gaming consoles will receive a good reception in the gaming industry. Resources and Capabilities The main resources of Microsoft are sound balance sheets and a recognized brand name.
Moreover, they have strong language and software support already at their disposal; therefore, they can always give gamers the power of customized game development. Predictions After performing the Four-Part framework competitor analysis, following steps are likely to be taken by Microsoft Microsoft will initiate an important strategy change.
It will be only concentrating on gaming consoles, instead of the whole gaming product range. Microsoft will react commensurately to Nintendo Wii in terms of latest technology and additional features Competitor Analysis (SONY PS3) Strategy Sony with its brand name in household electrical products is obliging with a two-pronged strategy (Reisinger, 2009). Sony PS3 gaming console is costlier than Xbox and Nintendo Wii; however, it comes with extra features that none of the other competitors are offering. Objectives Sony intend on making a significant profit from their gaming console. This line of PS gaming consoles has been a big revenue generator and Sony will continue with it.
It is expected, though, that the falling ratio of sales will soon compel the management to devise a new strategy. Assumptions It is assumed by Sony Corporation that ‘PS’ brand name will help them achieve their sales target. Industry has an ever-growing demand of gaming consoles and that will set the price equilibrium in accordance with the product price. Resources and Capabilities The key strength for Sony Corporation is the legacy of its previous gaming consoles. Sony remained the pioneer of gaming industry and that old reputation has attracted buyers toward PS3. Prediction In the light of above facts, it is predicted that Sony Corporation will soon devise a new strategy for PS3.
Prices of PS3 will be trimmed to encourage buyers and to stimulate video game developers and publishers to develop more games for the console. In addition to this, Sony Corporation will also respond to the strategic initiatives of Nintendo Wii by introducing promotional offers and some Value-Added Features as well. References Bellis, M. (n. d.). History of Sony Playstation. Web.
May 08, 2012. Retrieved from http: //inventors. about. com/library/inventors/bl_playstation. htm Thurrott, P. (2000, March 15). Microsoft to Enter Gaming Industry with X-box. Web. May 08, 2012. Retrieved from http: //www. windowsitpro. com/article/performance/microsoft-to-enter-gaming-industry-with-x-box Wikidot. (n. d.). Marketing Strategies. Teambox. Web. May 08, 2012. Retrieved from http: //teamxbox. wikidot. com/marketing-strategies Reisinger, D. (2009, July 9). Is Sony on the Right Track with its PS3 Strategy? Web. May 08, 2012. Retrieved from http: //news. cnet. com/8301-13506_3-10282313-17.html