The Wii: Nintendo's Video Game Revolution

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In 2007, Nintendo's inexpensive and quirky Wii video game console had become all the rage. Despite its underpowered processor and comparatively basic graphics, it outsold both the Sony PlayStation 3 and the Microsoft Xbox 360. Nintendo's handheld system, known as the DS, also outsold Sony's more advanced PlayStation Portable. Nintendo's products were so successful, retail stores in North America and Japan quickly sold out whenever new shipments arrived, and many consumers were forced to pay premium prices on the grey market. The case examines the characteristics of a successful new product launch, particularly product features, brand loyalty, content availability, third-party support, and adherence to industry standards. The case also considers how radical innovations can be used to win market share from technically superior products focused on incremental innovations. Finally, a 4P marketing analysis is used to compare video game systems offered by Sony, Microsoft and Nintendo. The case may be used with The Launch of the Sony PlayStation 3 (Ivey Case 9B07A014) and A Note on Video and Computer Games (Ivey Case 9B07A013).
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