Innovation Wins at the Cash Register
December 13th, 2006
In a post two days ago I suggested that the Wii Video Game console from Nintendo was the clear winner in the new console competition with Sony’s PlayStation 3. I based this on the fact that the Wii was an innovative product that both opened up the gaming space to new participants and was highly desired by experienced gamers.
Since that post I have come across sales numbers that emphatically point to the fact that consumers have embraced the new, innovative vision of the Wii. The PlayStation debuted on November 17 and the Wii on November 19 and the November sales figures for the PlayStation were 197,000 while the Wii sold 476,000. Of course the lower price point of the Wii helped in these numbers, but the buzz has not been about price, but about the radical new and innovative approach the Wii has taken, described in the earlier post.
A new product in a competitive marketplace that is completely innovative wins. When the price point for this innovative product is lower than the price for the competition, it wins big. As mentioned in the earlier post, innovation in such an influential field as video gaming will inevitably flow into other areas of our lives in the near future, and that is a very good thing.
It is sad to see Sony on the back slope of the innovation curve. It was Sony of course that created the ‘personal music player’ market with the release of the Walkman in 1979. Where were they when Steve Jobs created and launched the iPod? Where were they this past year while Nintendo was creating the Wii? Sony won the day in the 1970s and 1980s due to their innovative technology. Now the torch has passed to Apple and Nintendo. I hope Sony finds their innovation soul again soon. I suggest to all technology companies to keep the words of Bob Dylan up on their whiteboards while brainstorming: “Those not busy being born are busy dyingâ€.
December 13th, 2006 at 11:18 pm
I bought a Wii myself. It _is_ innovative, but I bought it because it’s the next console out there with some fun games.
I wonder daily, what would the sales numbers look like if there were _no_ supply constraints. So far, sales have been supply-driven: every unit moves. There’s nothing that lets us compare elasticity, much less one system versus another.
I wish we could. I’m curious as hell.
December 18th, 2006 at 1:34 pm
I’m one of those experienced gamers who is excited about the wii. I really wasn’t at first, but then gameplay footage started to emerge – that is – video of people using the controller.
Sadly, Sony not only failed to create a compelling, highly innovative product, but they botched the launch, the hype, etc.. constantly- starting as far as a year back, if not earlier. Throw in the hefty price tag, and you have a hard road to success.
On another note, I wonder how the un-availability of these two new consoles has affected sales for the 360 ? Do you think that parents will buy a 360 because they can’t find a ps3 or wii ?
December 18th, 2006 at 5:12 pm
Sly-
Interesting that you should ask. Actually the 360 has sold the most so far this holiday season, more than 500k. What this says to me is that the PS3 is in real trouble as the market for the ‘traditional’ consoles is going to the 360. I would predict that the 360 and the Wii will be the two winners in this three horse race.
David