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ManagementProduct LaunchGamingIntermediate2006
Nintendo: Wii — Gaming for Everyone
The challenge
The video game market in 1994 was dominated by Nintendo and Sega. Sony had never made a video game console. They were an electronics company. Nintendo had rejected Sony's proposal to build a CD-ROM add-on for their Super Nintendo, leading Sony to decide to compete directly.
The strategy
Sony positioned the PlayStation not as a toy for children (Nintendo's positioning) but as a sophisticated entertainment system for teenagers and young adults. They would attract third-party game developers with better hardware and more favorable royalty terms than Nintendo.
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Try the full case free →Key lessons (preview)
- Better developer economics can attract the content that makes a platform valuable.
- Repositioning a product category's target audience can unlock an entirely new market.
- Price anchoring against a competitor at launch creates immediate perceived value.