Nintendo
and Sony have long competed to win the dominant position in console market. The
data showed that Nintendo’s N64 failed to beat down Sony’s PS console. After
listing related formula and graphics, the author found some important
characteristics in the console market, including indirect network effects,
consumer heterogeneity, declining costs, and oligopoly competition, which were
common to other high-technology market.
I
consider this article as a good secondary resource to understand Nintendo’s current
social media strategy. In terms of N64, Nintendo’s one shortage was its lack of
game numbers. So, Nintendo spent a lot of time to develop and advertise its
games on 3DX console. On its Facebook page, the audience can find that Nintendo
updates new games frequently. The success of 3DX proved what the author
summarized in the article. As he said, “A major reason behind a console’s
success is its advantage in game variety.”
This
article targeted the internal audience who worked in this business. The data
provided was professional and logical. It helped Nintendo make effective social media strategy. For example, the table showed below
illustrated the relationship between game variety and profit:
Words Cited
Liu,
Hongju. “Dynamics of Pricing in the Video Game Console Market: Skimming or
Penetration.” Journal of Market Research 47.3
(2010): 428-443. Print.
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