Nintendo’s Strategy

The New Yorker writes: “The point is that business is not a sporting event. Victory for one company doesnt mean defeat for everyone else. Markets today are so bigthe global video-game market is now close to thirty billion dollarsthat companies can profit even when theyre not on top, as long as they arent desperately trying to get there. The key is to play to your strengths while recognizing your limitations. Nintendo knew that it could not compete with Microsoft and Sony in the quest to build the ultimate home-entertainment device. So it decided, with the Wii, to play a different game entirely. Some pundits are now speculating, ironically, that the simplicity of the Wii may make it a huge hit. Nintendo wouldnt complain if that happened. But, in the meantime, third prize is looking a lot better than steak knives.”

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