In: Operations Management
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?)
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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