Week 5 – Nintendo Wii’s world domination plan.

In terms of gaming consoles, SONY play stations or Microsoft XBOXs are the ones people generally think straight away. Nobody expects and realizes the Wii is actually the big brother of the gaming console market worldwide now.

Microsoft’s Xbox 360, Sony’s PS3 and Nintendo’s Wii are supposed to be in the same gaming console generation, but in terms of technology development and expectations from the gaming industries, Wii was the only console that stands out among the three. Both PS3 and Xbox 360 are able to provide realistic graphics and much improved audio systems, these features appealed to hard-core gamers specifically i.e. those who play on video games a lot. Figures suggest by 2009, Xbox 360 had 29.6 per cent of the market (29.68 million consoles sold worldwide), and PS3 had only 21.6 per cent of the market share (21.60 million consoles sold). Nintendo Wii had a whopper 48.8 per cent of the market with 48.95 million units sold worldwide, nearly doubled Xbox 360’s performance and was more than doubled of PS3’s sales. So what happened? Bad marketing implementation from Microsoft / Sony? Good market Strategy from Nintendo?

Xbox 360 and PS3 were really expensive when they first hit the shelves, retailed price for Xbox 360 was 399 Euros and PS3 was 599 Euros. In 2006 November, a firm specializing in market intelligence named iSuppli did a research and has revealed that on average, Microsoft was losing $120 per console sold and Sony was losing from $240 to $300 per PS3 sold. People might argue that the way gaming industries earn profits by selling games, but apart from the very few distinctive games such as Halo series for Microsoft, all most all games are available across the 3 consoles mentioned, so no one here are exactly in advantage over others.

The gaming experiences, no doubt by going on Xbox 360 and PS3 can be visually and auditory pleasing, in the other hand Wii’s graphics is roughly equivalent to the quality of the Gamecube. The highlight of Wii was the revolutionary way of gaming, the Wiimote has the motion sensing capabilites which allow players to interact with the digital world. Sony has developed the motion sensing style console back in the 2002, but had no opportunity to develop it into a real new business.

In advertisements and promotions, Nintendo Wii always involve the social aspects of gaming. For example, TV ads showed people having fun with the console alone or with friends and family, whereas in contrast most of the Microsoft and Sony only focus on how amazing the graphics are in games. In terms of promotion and the targeted segment of audiences, PS3 and Xbox 360 are aiming at young males mainly as their targeted customers (the most dominate sector of the gaming market). However Wii has been really flexible and Nintendo has worked really hard to ensure people will try on the console or at least go on it once. Nintendo’s CEO Satoru Iwata said in 2007: ‘We want as many people as possible to touch and use a Wiimote’. I do agree with this marketing strategy by encouraging people from all demographics to try Wii, as apart from the visual, auditory…etc, customers are eager to feel, consumers generally touch objects in order to explore stimuli further. By implemented this market strategy, people from segments of the market that traditionally are not regarded as gamers are now equipped with Wii or a Nintendo DS (females and elderly people).

Here’s the question, since people nowadays are aware of what is going on around them, so the reason for Wii’s success is because people generally would like to be involved and to be part of something, and the Nintendo’s marketing implementation has fully adopted to the strategy thus has explored consumers’ satisfactions and need? Or is it because it is all technical issues where Wiis are just generally alot cheaper and Nintendo the brand is viewed as a friendly and popular brand?

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5 thoughts on “Week 5 – Nintendo Wii’s world domination plan.

  1. Even though I don’t quite familiar with such gaming consoles, I enjoyed reading your blog! From what you have analyzed, I found that the marketing strategy Wii used is experiential marketing which I wrote about last week. Here, I want to say that let consumers try on the console is kind of offering entertaining experience which will provide consumers more information like the visual graphic and feelings of fun about the gaming console. Youn-Kyung Kim (2001) has pointed out that experiential marketing can make consumers catch the intangible benefits of the product. Intangible benefits may refer to the symbolic meaning of the product, the feeling of fantasy or excitement, sensory stimulation and etc. Therefore, such marketing tactics catches consumers’ heart and help Wii to win great sales. However, from my point of view, the marketing strategy used is always add-ups to a product. For long-run survival, the technology and quality of the game console always comes first.

  2. I am a very big Nintendo fan, i’ve never been one for the Xbox or Ps3..The console ‘system’ wars have been going on for years now, the winners of these wars are debatable depending upon market penetration, financial success, technical capabilities and consumer loyalty. I personality don’t feel there is one specific console that is superior in all these aspects. Obviously in terms of power, amazing graphics and technical capabilities the ps3 rains leader over xbox and the wii, however xbox would appear to be more popular, due to clever marketing and advertising microsoft employ. The wii on the other hand is the cheaper alternative to the xbox and ps3. Games on the wii are generally quicker and much cheaper to produce due to the low grade graphics, in comparison to ps3 games like uncharted or assassins creed, which are released every couple of years. I feel the wii tries to appeal to a much wider demographic than any other console. Over recent years the ‘nuclear family’ has broken down, due to advancements in gaming, social media ect, thus i feel the wii tries to bring families back together again. Whether nintendo actually achieve this i can’t say, but the concept of spending more time with loved ones and injecting fun back into the family unit is what partially drives wii sales. So wii dominates a larger chunk of the gaming marketing because games are more accessible, cheaper and a wider variation available. This games are specifically aimed at a middle class family unit, unlike ps3 which as you stated are aimed at hardcore gamers who don’t always have much money. So i feel it all depends on your particular opinion, needs and wants in a console to how superior you judge it in comparison to other on the market. . .

  3. So the Nintendo Wii, Xbox 360 or the PS3, well I have experienced playing on all of them,and own two of the consoles myself. I agree that the PS3 and Xbox 360 are aimed more at the hardcore gamer society, whilst I see the Wii as a more family orientated console perhaps aimed at the younger and in some respects older generations. I believe this is where it gained its success from, when the Wii came out and ensued a message of physical activity a lot of parents where more likely to invest in a console which can promote healthy behaviour, but also fit for younger children. So in respects to the Wii they appealed to a new market, the problem that I have with the Wii is that when Sony and Microsoft introduced the same motion gaming they made it better quality than the Wii. The Wii’s success and Nintendo’s in general has been due to their innovative new ways of gaming, the main issue with the Wii is now where are they going next? As both the PS3 and Xbox 360 have now bettered Nintendo’s motion gaming, so they are going to have to come up with a new way of appealing to their new market. I think that the PS3 and Xbox 360 may dominate the market soon as they have set market segments and loyal consumers and think that Nintendo could slowly decline, unless they come up with a new way of gaming. Iv heard that Nintendo are going to release a new console which is played in tablets. But how expensive will this be? Is this really going to appeal to the whole family which is what the Wii aimed to do? What do you think about it?

  4. I completely agree with about the reason why the Nintendo Wii is so successful is because they are very engaging, even using it as a key part of their promotion. I also think the reason why they are so successful is down to two main reasons:

    (One) Because they have maintained their ethos of how games are for everyone and so they have literally targeted people of all ages. You have games such as Cooking Mama (a personal favourite) which is suitable for children and adults alike but then you also have the Wii fit which is more targeted towards adults. This is actually applies to all Nintendo’s consoles such as the DS where you can have games such as Nintendogs for virtual pets or brain working games such as Professor Layton games which are targeted at adults. I particularly love how Nintendo brings the family together when promoting their games and consoles. Does any other console brand do this? I can’t recall any (USP perhaps).

    (Two) The Wii consoles are simply more affordable and more accessible. It also is more economical for a parent to purchase a console that can be enjoyed at any age and by however many gamers that they won’t grow out of, nor be a particular age range to play. This was a fun blog to read. Thank you.

  5. I think it is both the mixture of price and activity that i think makes the wee stand out. the target consumer has been well defined by nintendo coupled with a good marketing strategy has enabled the wii to expand into areas that Ps3 and Xbox did not simply identify. looking however to the future i have some doubts about the nintendo wii because competitors such as microsoft in particular have created external devices such as kinect in order to challenge the wii. it will be interesting to see what the next generation of products will look like, if graphics for games can be improved, then the wii may still retain a large proportion of the marketplace however if it does not its future may limited.

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