Post on 06-Apr-2018
transcript
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RIVALRY IN VIDEO GAMES
Professor: Kyriakos Kyriakopoulos
Players: Natasa Zampeli
Dimitris Kanelakis
Andreas Raptopoulos
Vasilis Solidakis
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Rivalry in Video Games
Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
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PRESS START
After domination of SONY for 11 years up to 2006,
an entirely new situation was emerging at the beginning of 2007,
in the 7th generation of video games consoles,
that was shaping up into a three-way battle between
SONY, MICROSOFT, NINTENDO
$ 24 billion Worldwide Sales of the Video Games HW & SW (2006)$ 24 billion Worldwide Sales of the Video Games HW & SW (2006)
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Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
Rivalry in Video Games
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COMPETITIVE SOFTWARE TITLES Sega VS Nintendo in 1993, Sony in 1995
XBox major weakness in 2001
MOST ADVANCED TECHNOLOGY
Sega VS Nintendo in 1993 (16-bit VS 8-bit era)
Sony in 1995 (32-bit VS 16 bit era) PS2 in 2000
MANAGING COORDINATION & LOGISTICS FOR A
SUCCESSFUL PRODUCT LAUNCH
Lack of PS2 in 1998
LEVEL 1: FIND THE KEY FACTORS
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LEVEL 1: FIND THE KEY FACTORS
This was all true up until the sixth
generation.
Currently, as the basis of the competitive
advantage changes (commoditization of
technology, games available for multiple
platforms, multifunctional hardware)
so does the dynamics of the market.
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Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
Rivalry in Video Games
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LEVEL 2: WIN OR LEAVE
A fast-pace, dynamic industry demands effective
strategy combining clarity of vision with flexibility
and responsiveness.
Up until 2007, the gaming consoles customers
gravitate towards the market leader. So one firm
dominated the market and scooped most of the
industry profit pool.
The one that better understands the sources of
competitive advantage and assembles the
resources needed to exploit them is the one that
eventually wins and gets the big money!
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LEVEL 2: WIN OR LEAVE
Winner winnerchicken dinner
Competitive advantage
1972-1985: Atari 2006(4-bit consoles)
The first home video console to acceptinterchangeable cartridges
1986-1991: Nintendo NES(8-bit consoles)
Careful management between HW &SW (tight control to game developers)
1992-1995: Sega Genesis(16-bit consoles)
Great variety of gaming titles
1995-1998: Sony Playstation
(32 & 64-bit consoles)
Fierce marketing campaign
Huge library of titlesFast lead time
1999-2005: Sony PS2(128-bit consoles)
Brand equityBackwards compatible
2007: Sony PS3, Xbox 360 Multi-functionality,
Online capabilities (eg. Xbox live, PSN)
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Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
Rivalry in Video Games
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LEVEL 3: FIGHT THE OLD GUYS
8-bit Era (Nintendo VS Atari)Tight Control of game supply by
carefully managing their quality and
releases
16-bit Era (Sega VS Nintendo)
Marketing strategy
Targeting a wider audience
Genesis what Nintendont
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LEVEL 3: FIGHT THE OLD GUYS
32/64-bit Era (Sony VS Nintendo & Sega)Preparation before launch with many titles
available
Smart Marketing
Exploitation of Sony Brand
Many titles, but less copies per game
128-bit Era (Microsoft VS Nintendo, Sony & Sega)
Powerful console
Recruitment of games and game creators
Targeting not only games but electronic
entertainment in general
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Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
Rivalry in Video Games
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Innovation & mechanisms to protect it
Technical standards
Patents
Lead time
Secrecy
Complementary resources
Finance
Manufacturing
Marketing
Distribution & sales network
Service
Complementary technologies
LEVEL 4: HEADING TO THE FUTURE
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Develop multi purposing consoles
Control and reduce production costs
Joint ventures
Outsourcing
Strategic alliances with software companies
Support each new launch with many & good titles
Broaden segmentation (e.g. learning entertainment, AAL
Ambient Assisting Leaving for elder or disable people)
LEVEL 4: HEADING TO THE FUTURE
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Press Start
Level 1: Find the key factors
Level 2: Win or leave
Level 3: Fight the old guys
Level 4: Heading to the future
Level 5: The final battle
Rivalry in Video Games
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Video games is a very competitive and still growing business
Innovation and technology make the difference
Before 2007 winner take - all industry
After 2007: competitors can exist at the same time
Complementary resources are critical
Protection of innovation is a strategic factor
LEVEL 5: THE FINAL BATTLE