Nintendo was THE console in the 90s.
It never had the greatest graphics but had better stories for their video games.
32 bit version of Grand Theft Auto was still great.
But times were a’changing. Especially with the gaming and graphics community.
Without a substantial gaming history lesson, the short and sweet is that gaming consoles started to evolve to higher graphic resolutions and with innovations in technology the graphics became sharper and more realistic to cater to the demanding hardcore gamer. X-Box and Playstation became leaders in this realm. Consequently leaving Nintendo on the verge of bankruptcy. I dont have the business canvas to show. So I’ll describe what X-box and Playstation who were competing each other on the different titles, but identical business models
Value Proposition (VP):(Bundle of products/services that create value for a certain Customer Segment):
They had high performance consoles and a loyal audience
Customer Segment(different groups of people Sony/Microsoft serve:
Game Developers (who attributed to the Revenue)
Hardware, Sales at a loss, and Royalties.
Here’s the Judo trick that saved Nintendo from extinction.
They embraced the low technology of their early days, and saved money on cheap development (VP)
Made it a family console (VP): Games like Wii Fit, Wii Sports
Attracted a new market of Casual Gamers instead of High Demanding Gamers. (CS)
Hence, a profitable revenue model due to low maintenance.
And that’s it. 3 moves that had people lining out the door for Wii consoles.
Next time you think about competing.
Simplify instead of Intensify.