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Tuesday, February 24, 2015

Research 2 on Nintendo’s Social Media Strategy

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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