Following quite a while of gaming console industry initiative, by what means ought to Sony react to the mind-boggling accomplishment of contender Nintendo's easy to use Wii over Sony's innovative PlayStation 3? It was August 2008 and Kazuo Hirai, CEO of Sony Computer Entertainment Inc. (SCEI), was mulling over inquiries from correspondents about how Sony wanted to react to Nintendo's Wii comfort, which was drastically driving Sony's PlayStation 3 and Microsoft's Xbox 360 consoles in deals. The Wii's matchless quality was particularly perturbing to Hirai, given that Sony had overwhelmed the videogame business and to a great extent characterized its course subsequent to 1995. Be that as it may, the tables had turned drastically in the present era. In spite of the fact that the Wii was mechanically substantially less progressed than were PS3 and Xbox 360, the Wii's usability, creative movement delicate controller, and straightforward yet fun diversions had made the console a hit with all demographics: nine to 65 years of age, male and female. Therefore, Nintendo had stolen a walk on its two bigger adversaries by engaging individuals who were customarily not ardent videogame clients. Microsoft's and Sony's all the more capable machines stayed focused at the conventional "center gamer" group of onlookers: 18-to-65-year-old guys. Hirai was resolved to restore that matchless quality in the present era or the following. He realized that regardless of whether he openly characterized SCEI's methodology as a reaction to Wii, he needed to discover a path for his organization to manage the new request of the videogame business that Nintendo had made. In trying to do as such, Hirai may discover direction ever, which had been stamped by fast and incessant changes of fortune.
How attractive is the video game console industry in 2008?
As Sony attempts to regain industry leadership from Nintendo, what lessons should Kazuo Hirai learn from the history of the video game industry? How has the structural attractiveness of the industry changed over time?
What are Sony’s strategic options for regaining industry leadership? As Kazuo Hirai, which option would you pursue?