Platform War in Video Games: Who Won, Who Lost, and What We Can Learn
With nearly 20 years in marketing, PR, and a deep dive into the intersection of AI, new tech, and communications, I've seen quite a few tech battles. But let's talk about the fascinating platform war of video games. And yes, you read that right, even Queen Elizabeth was gaming with a Wii. Let's dive in!
First to the business theory behind it all... (yes, we have to start here. You'll thank you later!)
The Platform Study: Defining the Blueprint
Courtesy of a brilliant article "Products to Platforms: Making the Leap" in HBR by Feng Zhu and Nathan Furr, we've got a roadmap on transitioning from product to platform:
Be early with a good product: A robust product and a substantial user base are foundational. It's about being there before the competition and offering something exceptional.
Build a Complete Ecosystem: You need both a product and platform model. An ecosystem encapsulates everything - hardware, software, and the experience.
Accelerate the Tip: This involves solving the chicken-and-egg problem of platforms where more users attract more developers and vice versa.
Deter Platform Competition: Always be one step ahead. Think Fitbit!
Now let's dive into the interesting case study!
Nintendo's Game-changing Approach
Nintendo is the poster child for mastering the platform game. Let's decode their approach:
Background: During the 1980s, the gaming industry was plummeting. Enter Nintendo. A company that started with playing cards in 1889 transitioned into arcade gaming. Quite the pivot, right?
The Playbook: Nintendo made three crucial moves:
Early Bird Advantage: Launching their 8-bit console before their competitors was pivotal.Complete Ecosystem:From the console to their in-house developed games and third-party tie-ups, they covered it all.
Accelerating the Tip: Affordable pricing strategies and a killer application - who doesn't remember Super Mario?
Revenue Streams: Nintendo didn't rely on one revenue model. They made money from their games, consoles, third-party game royalties (remember Tetris?), and even Nintendo merch. Versatility was the name of the game.
The Not-so-Smooth Road: As easy as it sounds, Nintendo had competition. In the 16-bit era, Sega took the lead with their Sonic the Hedgehog. In the 32-bit scene, Sony's PlayStation with Mortal Kombat outperformed Sega. And then there was Microsoft's Xbox. The lesson? The platform playbook isn't a guaranteed win.
Nintendo Strikes Back: With the gaming world seemingly moving towards Xbox and PlayStation, Nintendo unleashed the Wii. An innovative motion-controlled gaming experience. They kept their hardware costs down and created an experience that expanded the gaming demographic. And the cherry on top? Knowing that Queen Elizabeth enjoyed the Wii makes the win even sweeter.
Takeaways for Product Launches
From this exciting journey of gaming platforms, we can draw some critical business lessons:
Innovation is Continuous: Nintendo's journey shows us that even if you lead once, you need to keep innovating to stay ahead.
Diversify Revenue Streams: Multiple revenue avenues not only increase profitability but also provide flexibility in strategic decisions.
Know Your Audience: Nintendo's Wii expanded the gamer demographic, showing the power of understanding and catering to your audience.
Leverage Network Effects: The more people use your platform, the more attractive it becomes for developers, and vice versa.
And that is a sneak peek into the world of gaming platforms. A place where strategy, innovation, and knowing your Queen Elizabeths from your Mario fans make all the difference. Stay game-ready and always be innovating.