A few days ago I wrote about Microsoft’s Xbox and it’s destiny of success in the console market. Over the past few days I have been thinking more about it and I actually see another path being taken by Micrsoft. Of course, standard disclaimers apply here, I’m just indicating my perception which could be totally wrong.
In my previous article I mentioned Mircosoft’s stategy for battling Sony for market share in the console gaming industry. Then something dawned on me. Microsoft can and should ignore Sony completely.
Microsoft shouldn’t bother with Sony at all. What, your asking. Why should Microsoft ignore their largest competitor in that market? Good question, grasshopper. Now pay attention. The reason Microsoft should ignore Sony is because Nintendo is the company that can’t afford to fight this war. Sony rakes in billions in other business ventures like pumping out sub-standard movies, music and TVs.
Nintendo, on the other hand, doesn’t make near that because they are a console gaming company only. Their eggs are all in this basket. When all your eggs are in one basket, it’s easier to break them all with one whack. Microsoft is taking a swing.
Microsoft can bring hundreds of millions of dollars to bear on this specific industry. Nintendo will hurt first. Mircosoft already purchased Rare, Ltd. away from Nintendo. That’s the main clue they will topple them first. Rare makes, or made rather, 10% of all Nintendo’s gaming titles.
Sega has already withdrawn from the industry. The Dreamcast was their last entrant. They couldn’t battle Sony and the onslaught of the Playstation. In that same manner, Nintendo will fall under the Xbox. The GameCube 2 is nearly out of the question. If Nintendo makes it, it will most certainly be a burden on the company. They will have to specify their niche even more and concentrate on the GameBoy, and hand-held gaming, if they want to survive.
After Nintendo falls from the console wars, that leaves only Sony and Microsoft. But knocking down the easiest competitor, Microsoft opens themselves up to 50% of the market that fast.
If they spent the next 3 or 4 years fighting Sony, they will have smaller returns. Sony would, and will, put up a much stronger fight. Sony is big enough and, more importantly, rich enough to weather a Microsoft storm.
That is what I predict Microsoft’s stategy in the console market to be. Capsize Nintendo and then enjoy the easy ride. After that, they’ll have plenty of support, buyers, and game makers to reap the profit. They’ll likely never scare Sony from the market, but they don’t have too. In fact, the can forget about Sony and still enjoy the success they will get one pesky Nintendo is out of the way. And no company would be crazy enough to try to enter the console industry after that.
Nice knowing ya Nintendo. The Mario Brothers and Sonic the Hedgehog can share a table at the retired gamers cafe.