Question

In: Operations Management

1. Briefly explain the war between Sony and Nintendo. 2. How are the strategies of Sony...

1. Briefly explain the war between Sony and Nintendo.

2. How are the strategies of Sony Playstation and Nintendo different from each other? (Are they different? Or are they not different?)

Solutions

Expert Solution

Sony and Nintendo were both Japanese companies and were making an in-built CD in a secret project. The war began when Nintendo became insecure about Sony that post this offering of them is successful Sony will get into making PlayStations and will become a direct competitor of Nintendo. Nintendo dropped off Sony from the entire project and decided to take up Philips on board. With the burnt, Sony started its new wing which made Playstations and struck Nintendo. This is how the war began.

Nintendo and Playstation were both entertainment systems for playing video games and hence the product offering was the same from both the companies. Both were Japanese companies with the same distribution networks and offered the same price for their products. The marketing of both companies was different. Sony announced its product one year before launch in mid of the holiday season; they offered Playstation to video gamers and showed that they were loyal to their customers and one could also watch TV on it. Nintendo announced its offering some months before launch and along with traditional advertising it also involved events, goodies, cases for consoles, etc. It launched its product post the holiday season and yet it was more successful than the Sony Playstation because of reaching out at the right time to the customers.

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