Reference no: EM131936353

Case Study:

Case: Wii. Page 425 - 426

Write an essay using APA style formatting.Answer the questions giving supportive reasoning, and justification.

Include the terminology and concepts from the chapter needed to fully develop this assignment.
APA style.

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Soon after the launch of its GameCube gaming system, Nintendo immediately began development on what was to become its next-generation product. Known initially by the code name "Revolution," this new product was designed to be competitive with the two leading competitors, Microsoft's Xbox 360 and Sony's PlayStation 3, yet at the same time target a wider demographic of customers. A prototype was revealed at the Tokyo Game Show in September 2005 by no less than Satoru Iwata, Nintendo's president. It was launched in December 2006. The 438 world knows it as the Wii, pronounced "we."

(Note: According to the company, the name is simply Wii, not Nintendo Wii.) According to Nintendo's vision of the market, the next generation of product should not necessarily have been a more powerful GameCube. (Both the current Sony and Microsoft products were considered quite fast and powerful products with excellent graphics.) Rather, player interaction was stressed in product and game design. Unusually small for a gaming system, the Wii features a wireless controller (the Wii Remote), which detects motion and rotation and also works as a pointing device. Another feature is WiiConnect24, by which the Wii can receive messages over the Internet.

These innovative features have led reviewers to praise Nintendo for "thinking differently," not "thinking better." The Wii Remote allows the player to control screen action just by tilting his or her hand; the effect has been called "virtual reality in your living room." In a car race game, the user mimes driving a car; in a combat game, the user "wields" a sword. Sports games let the player mime swinging a baseball bat, tennis racket, or golf club. Players say they feel they are doing more than controlling the game; they "feel like they are a part of it."

The aerobic benefits (to both young and old) of playing these video games have led to the creation of a new term: "exertainment." So, despite being quite underpowered next to the competitors and featuring comparatively poorer graphics, the Wii has been winning the market wars and also getting mostly favorable reviews. The New York Times said that Wii "radiates fun" and "is eclipsing Sony," while the Wall Street Journal's Walter Mossberg wrote that the "modest Wii" was "more exciting, fun and satisfying." Not all reviews were so glowing, however.

One reviewer for Slate wasn't impressed with the accuracy of the remote. The wider targeted demographic is critical for Wii's success. Mr. Iwata was quoted as saying that the goal is not to fight Sony, but "to get new people playing games." Over $200 million was spent on TV and Internet ads during late 2006 and through 2007, urging viewers to "experience a new way to play."

The ads stressed family-friendliness and showed all sorts of individuals, from grandparents and parents to urban types and ranchers, enjoying playing Wii games. Needless to say, the bulk of the promotional effort was to change the perception that Nintendo is for teenagers and children only.

The units are priced at about $250, and the games are priced at about $10 less than similar Microsoft or Sony games. The units are also compatible with GameCube games. Address Nintendo's vision and new products process for the Wii gaming system. According to Mr. Iwata, the Wii "could not have been accomplished if we had tried to make a new game console in the conventional manner." What does this mean?

Then address the positioning attempted by Nintendo in this highly competitive market. Which positioning strategy or strategies discussed in the chapter seem to have been used, how successful has Nintendo been in achieving this desired position, and what are the major drawbacks? Finally, comment on the brand name, using the criteria discussed in the branding section of the chapter. In answering this question, you should know that the original code name, "Revolution," was actually favored by many people within Nintendo, and the final selection of Wii was somewhat controversial at the time.