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Technology Development And Competition In Video gaming Industry Marketing Essay

The purpose of this paper is to clarify the result of technology advancement on the competition in a global industry. After showing some theoretical understanding on this issue, it is further illustrated extensively by the example of Gaming Industry and improvements done by the major players in it and exactly how nowadays the most advanced technology creativity by Nintendo altered the terms of competition in the whole industry. Innovation can have radical or radical effects. Usually creativity is seen as the technique of applying complex or specific progress to the marketplace. In this sense advancement can maintain relation to procedures (i. e. a new approach to making something better or cheaper or both) or products (i. e. a new or substantially better product of some kind), or may be a mixture of the two. Product invention can make new market segments or alter the segmentation of already existing marketplaces while Process advancement have an effect on the competitive balance in existing marketplaces. Innovation brings efficiency gains, product variety and better quality product at fewer prices. With such clear consumer benefits, it also provides innovator competitive edge by giving the capability to present entirely services or techniques or higher competence in existing techniques. For such competitive edge it is not necessary to be everlasting and other effect is the fact it promotes other rivals also

And the benefits may be popular, arising from their syndication through sites. (Peter Freeman, 2004). In other words, by development the incremental earnings may improve the competition and therefore promote R&D opportunities targeted at escaping competition. (Philippe Aghion, et, al, 2002)

Many enhancements utilize technology. May be an technology is "high technology" from the suppliers point of view, but if it's not obvious to the client as bettering and modifying their business functions, that is radical innovation. Technological innovations are generally complex products, having attributes with which the potential adopting unit may be new. Generally high technology improvements have high turning cost and costly in monetary terms. The concern is how this technology development alters the conditions of competition in the global industry. These technology improvements may reduce cost of creation or distribution and also helps in producing top quality or progressive products offering new benefits for the consumers. In technology market segments, products of new era often include new features rather than more core features. The popularity of technology invention is favorably associated with competition. (Thomas and Hubert, 1986). In fact, Abernathy and Utterback (1978) have suggested that as competition raises, the sort of innovations adopted changes from major product enhancements to process enhancements. The option of development is most pronounced if the strategy for preempting new entry requires new solutions for cost reduction or for gaining new sections. Therefore, the conditions for a good effect of demand doubt on the pace of diffusion of invention are: when existing competition uses cost as a barrier to access and there is a potential for price reductions so when the preempting strategy is to fill up the gaps in fulfilling the heterogeneous needs of the marketplace, considering that the services or segments need a know-how.

There have been many management procedures and demonstrations in the current modern times on certain requirements for companies to be impressive. Additionally it is usually thought that without technology companies will immediately lose their allure of competitive border. Competitiveness of a business is generally evaluated by the number of competitors it has and also competition has reached such an even that only companies who can offer steady stream of innovative functions and products are successful in both domestic as well as international markets. The aim of technology invention can either be to target new customers or the need of existing customers. This is explained by taking the exemplory case of game playing industry, as games industry made a whole lot of technology innovations in memory and graphic the different parts of gaming consoles since many years. The top feature of gaming industry is swift and sustained specialized innovation.


Since 70's the video games industry being a only factor in a short time period. It took them only few years to make their place on the market and people began becoming acquainted with the gaming companies. Types of video games where we stomped turtles and ate mushrooms are gone now. That point gaming industry was really successful and became a billion money industry, those were the times when Nintendo started out launching games on a monthly basis. In the first 1980's their use to be always a huge increase popular for video games and has sustained with constant raises in the next years. And in 2000's, the video games industries supported All of us market of almost $13 billion and worldwide market of almost $24. 5 billion. At this time, on the market every firm is pursuing different BUSINESS DESIGN and the most successful is Nintendo's Business Model as the price tag on their gaming console is less and instead of following others, they may be doing something progressive which time they targeted the non-gamers in the market which the other two competition cannot even think of. The gaming industry tries to boost by launching new game titles one after the other. To improve the sales and conquer the competition every firm on the market is trying to improve marketing techniques and games. They launch more powerful consoles with bigger game worlds, new graphics and better soundtracks.

Over the previous year or two there is a direct connection between your introduction of next-generation video game hardware and the surge popular. Through technological upgrading, Gaming gaming system manufacturers have little by little migrated from 8-bit to 16-bit to 32-bit to 64-amount, resulting in ongoing improvement in performance and quality of video games. As Sony and Microsoft focused on increasing their consoles, Nintendo developed new technology that allows the player to try out physically with proper steps unlike the other consoles. The advantages of new product by Nintendo that is NINTENDO WII GAMING CONSOLE, game console can be an much easier to use interface that targets at current non-gamers while Microsoft's Xbox 360 360, another gaming system is unveiled as high definition video gaming. So Microsoft's habit is accelerating the technology treadmill and when the new feature comes with an alternate demonstration aspect to draw in new customers such as Nintendo's case, which means this is referenced as stepping off of the technology fitness treadmill. So, to alter the terms of competition in the video games industry, Nintendo developed technology advancement and launched Nintendo Wii, console when a motion sensitive controller is utilized and adopted totally different strategy and with its technology innovation improved the terms of competition in the global industry. Sales and marketing vice-president of Nintendo explained the strategy of his firm by citing two popular managerial catalogs, the Blue Sea Strategy (Kim and Mauborgne 2005) along with the Innovator's Issue (Cristensen 1997): "Looking at the current condition of the video game market, we believe there is a strong discussion for expanding the audience beyond the existing core players, attracting players by rethinking just what a videogame means, and delivering our amusing in a more convenient and affordable fashion" (Casamassina 2005). The video game market is firmly at the mercy of changes and is highly powerful.


The gambling industry is dominated and contested by 3 big players, namely:



SONY Play Station

Once the distinct global head of the gaming industry, Nintendo now for the number-one spot in the industry has to contend with Sony. Because of its home gaming systems as well as the hand-held Nintendo DS, Nintendo itself companies and market segments hardware and software. Nintendo DS has controlled around 90% of the U. S. hand-held market in 2003, the 16-bit Super Nintendo. In the history Entertainment System (SNES), and the performance-driven Game Cube was the fastest-selling video game system. The superior 3-D design of Game Cube's and well-known game titles (Nintendo's 50% earnings are derived from software) have allowed it to preserve itself in the video game competition. In 2005, US video gaming consoles has highest market share from Sony with 56. 4% share which is accompanied by 24. 9% talk about of Microsoft and then third one was Nintendo with 18. 7% as shown in the amount listed below:

March (2005)

NINTENDO's Invention: Motion Controller

Because of the advantages of the innovative movement controller, The Wii has been burning since it to enter the market and US device, sales have risen to 20 million, rendering it the highest selling video game console in history and ushering in unique family gameplay with some of the headings such as Mario Kart Wii and WiiPlay. As Microsoft and Sony extended to boost their video games, Nintendo attempts its best to change the technology. They made a decision that alternatively than boosting their cars, they would considerably create a new vehicle, which would reform the industry. Sony and Microsoft focus on the older players of population with their game titles and consoles, instead of teenagers. Nintendo instead tried out to bring technology creativity to the table and win over the adolescent decades, which are the future. The actual fact behind the Nintendo Wii's success is that it's a very good technology and parents can easily see their kids exercise. Essentially Nintendo did not introduce Wii with the HDTV where as its competitors have with the latest consoles. This seems relatively a sensible step as the bulk of homes don't have High definition tv and the approval rate of TV will comparatively slow because non HD Tv sets do a perfectly good job. Even elder people like this console, particularly if sometimes they favor to change their inactive lifestyle, or if they're interested to lose some weight. This is why when Nintendo involves race with its other two competition, Microsoft and Sony it gets the advantage over them. Like Sony some companies is dependent mostly on the reputation, whereas the ones who is victorious the race over time are those who innovate. The advantages to Nintendo are that, first of all it makes their system low-priced to produce, which means that they can sell the gaming console base at a revenue while their competition have to purchase the retail price. Another gain is that video games are a whole lot cheaper, quicker and much easier to develop. This, naturally, has immense effect on what shows up generally and when it seems on the overall game shop shelf. (Peter Freeman, 2004)

According to the NPD Group (which monitor retail deal), in November 2008, the business sold 2 million Wii players more than twice the amount of PlayStation 3s and Xbox 36Os merged. And in the same month it sold 700000-plus Wii-fit exercise boards. But Nintendo's success isn't limited by the Wii. Its lightweight DS system is the top retailer in its category too. In March Nintendo sold 601, 000 Wii consoles in the U. S that are definitely more machines than Microsoft and Sony Corp.


The couch-potato world of video recording gamers was dazed when the Wii, premiered with its motion-sensitive remote control. Users can play Wii Golf, tennis and many more games for case, by swinging the remote like a driver, or like a racket in the air. In September, Nintendo added one more accessory in its collection that is a $20 remote-control accessories called Wii Action Plus that was introduced to add more reliability to game movements, it make the Wii's motions feel more realistic. But it works only with Wii Movement Plus Video games. Wii also promotes users to walk around in more ways than simply playing with a distant: Its Wii Balance Mother board, works such as a digital exercise step, which is roofed in the Wii Fit Plus game in a $100 bundle, It documents changes in your body's weight and everything the goes for activities from wake boarding to pilates. The Internet gain access to is roofed in Wii and users can compete against each other online. Around 655 packaged game titles are accessible for between $30 and $50.


Microsoft Corp. developed the world's first sensor to incorporate multi-array microphone, an RGB camera and custom processor which allows players to control video games with the movement of their body, this was an effort to magnetize the everyday players who have fueled Nintendo's recent success. These devices of Microsoft is a bend on Nintendo's smash hit Wii game gaming console, that allows users to golf swing a racquet of golf or other video games equipment by simply holding a wand of clear plastic in their hands. The Microsoft camera doesn't require gamers to hold any part of their hands to regulate on-screen action. The camera rests near the television set and captures when players move their hands, thighs or head. The camera represents another make an effort by the gambling industry to get to consumers with an increase of instinctive playing methods than regular game controllers, with the selection of joysticks and control keys. To give players more perfect

control over games than early on game camcorders actually do. Microsoft's camera uses 3-D technology


Sony Computer Entertainment, on the other side, will be competing with Nintendo head-on with a new PS3 motion-control technology arranged to launch in springtime 2010. The PlayStation Vision, Sony's proprietary digital camera that picks up the slightest side gesture, reads motion on these devices. On-screen, the controller may then become anything from a bow and arrow to a novelty baseball bat that opens up an abundance of possibilities for PS3 game designers. Sony is also heading head-to-head with the current twin handheld device of choice, the Nintendo DS. Sony Corp. ideas to update its PlayStation 3 3 unit for 3-D video games with a free software upgrade, but for that consumers must buy a fresh TV and spectacles.


Nintendo Co. is likely to sell a fresh 3-D video gaming device without the necessity of wearing eyeglasses while playing as everyone doesn't like to wear glasses. The device will do well as the DS; which is the best-selling hand-held videogame till day, with more than 125 million items sold since its launch in later 2004. Especially among informal videogame enthusiasts, Apple Inc. 's iPhone (Smart mobile phones) have began to come forwards as a danger to gaming products such as the DS. The new system will also play current Nintendo DS video games. From TV sets to digital camera models, electronics companies are embracing 3-D in an effort to produce better products.

Source: Flurry Analytics


The history of the video game industry belongs to Nintendo. However in 1990's, Nintendo's market show was reduced completely as the personal preferences of gaming players shifted from uncomplicated fun game titles to complex and superior video gaming offered by Sony and Microsoft, which joined the market in 2001 with the Xbox. It was basically the technical prowess of Sony and Microsoft, which stole the whole market from Nintendo. When the company was almost falling like a house of credit cards and it seemed that your competition in the gambling industry was only between Sony Play Train station 3 and Microsoft Xbox360. Nintendo launched Wii, a system that had unconventional design. Though Wii had not been in direct competition with Microsoft's Xbox and Sony's PlayStation, but it were able to steal and lovers of both the players and significant market stocks. The Nintendo Wii wiped the sales floor using its competitors.

As a response to the considerable success of the NINTENDO WII GAMING CONSOLE, Microsoft developed Task Natal, ditching physical peripherals and controllers completely with the world's first sensor to combine multi-array mike, custom cpu and RGB camera. Sony also did not lag behind as it launched a new PS3 motion-control technology to meet up with the competition head-on. These innovative devices again disturbed the sales of Nintendo and looking to revive sales of portable game machines, Nintendo Co. brought about a fresh 3-D games device known as the Nintendo 3DS.

So, this can be seen that through some innovations and technical advancements, each one of the three companies has changed the conditions of competition in the game playing industry. Every company is trying to fully capture the major market show by bringing about innovative games consoles.

So, in case of the video gaming industry, Technology is the key mover of the market and it can help in modifying the terms of competition in any industry to a great extent.

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