1.

What were Microsoft’s motives in entering the games console market with
Xbox?

One of the first major reasons that Microsoft entered the gaming market was that they
believe their experience in software could aid them through the way in hardware-game
industry and they wanted to diversify the game market.

2. What are the competitive advantages of Microsoft Xbox and Sony PlayStation 3?

The competitive advantages are:

 CPU Power: Both PS 3 and Xbox 360 have processors that are far more powerful
than most PCs
 Storage (hard disk)
 HD video: Both the PS 3 and Xbox 360 use high-end graphics chips that support
HD games and are prepared for HD TV.
 DVD: Both Sony and Microsoft provide the DVD opportunity. Sony even
includes a Blu-ray drive.
 Connectivity (online): the Xbox especially has positioned itself as the online
games console with multi-player functions.

3. What are the competitive advantages in the business model of Wii?

Nintendo entered the video game market in 1979 and has been a top competitor ever since. In
2006, with the release of the Nintendo Wii, they secured their competitive advantage in the
video game industry. The Wii was created to establish a new standard in game control, using
innovative and unprecedented interface with the Wii remote. The remote’s motion sensor
capabilities allowed the user to interact and manipulate objects on the screen by moving and
pointing the remote in various directions. It really changed the way games were played.
In 2010, they were the market leader of that generation of video console sales growth, ahead
of Microsoft and Sony. By the fall of 2010, Sony and Microsoft were starting to gain on
Nintendo’s competitive advantage when they came out with their own gaming systems that
had innovative controllers along with much better graphics.
If Nintendo wants to keep their competitive advantage, they will need to reevaluate their
strategies.
4. What do you think are Nintendo’s chances of creating a long-term blue ocean with
Wii?

People of all ages can use the console for their own fun, children for education, teenagers for
entertainment (as PS and Xbox), adults – for health usage( such as fitness, dancing or sports),
elders – improve balance and help avoid falls, so it can easily engage all the family for
spending time together. One of the most of important parts is that Nintendo really cares about
people’s health, and helps develop muscle strength and coordination and reducing the risk of
falls for people with Parkinson’s disease. We think that Nintendo’s chances of creating a
long-term blue ocean with Wii are extremely good because they were the first who entered
this market; it means that they have plenty of time to set up a vision of the game structure, the
scope of activity that such type of game can involve.