I was just thinking the other day, then saw this thread about Sony losing money.
Q: what do nintendo, sony and Sega have in common?
A: a false sense of security, old fashioned thinking in the marketplace, a false sense of consumer loyalty
so if we look at all three companies, they share common traits:
1. all were come from nowhere surprises.
--a) the nes was launched after the market was "dead"
--b) the genesis "came out of nowhere" to capture a demographic no one realized existed (teens, older kids)
--c) sony came out of a dead deal with nintendo and surprised everyone by dominating the market
2. they all built epic followings which fell apart at some point
--a) people realized that nintendo had first party games, but sony had bigger, epic games with cutscenes, CD tech etc
--b) people played the heck out of the sega sports titles, until the psx launched and sega fragmented their market to bits and pieces
--c) people bought psx and ps2 for exclusives, until all of a sudden the same games appeared on microsoft's consoles, often times with better features and online play.
3. they rely on the core market too much
--a) people bought nintendo systems for exclusives, until they realized it isnt about first party games ALL the time.
--b) people bought sega systems for exclusives, until they realized it isnt about first party games ALL the time.
--c) people bought sony systems for exclusives, until they realized it isnt about first party games ALL the time.
4. The economy makes an initial investment with a high price point to enter prohibitive to most consumers.
So far nintendo seems to understand that.
Would another $600 playstation system do as well?
Hmm.
just thinking.



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