Monday, February 16, 2009

I love the Wii

And not just because it's a lot of fun. I also love the Wii because it's a great marketing story. Nintendo, if I recall the numbers correctly, was trailing Sony and Microsoft fairly significantly pre-Wii. Hardcore video gamers (such as my son) turned up their noses at Nintendo's products.

So Nintendo simply redefined the market, creating a family-friendly game system that facilitates rather than impedes social interaction, and that appeals more to adults and little kids than teen boys. It was marketing genius -- if you're losing in the existing market, create a new one.

And it has paid off big-time. The video game business is one of the bright spots in the economy, with January sales up 13% over last year, and within that growing market, Wii's console sales are double those of Playstation and Xbox, while the top three games are all for the Wii.

And besides that, Mario Kart is a blast.

2 comments:

internationalbs said...

It is a wonderful example of a firm reinventing the competitive space. The Wii is targetted at a completely new (and excited) bunch of customers.

See more here: http://internationalbs.wordpress.com/2008/12/17/too-much-wii-in-this-blue-ocean/

Bob Houk said...

Thanks. I just visited the linked article, and you said much the same as my post -- only you said it first, and much better.

I didn't know there was a name ("blue ocean") for the tactic Nintendo chose.