| Summary: | 碩士 === 義守大學 === 應用日語學系 === 104 === Development of video game industry begins when
Japanese video game industrial leader, Nintendo, releases its “Super Famicom”. Until now, video game industry’s market is divided by three major vendors, Nintendo, Sony, and Microsoft; Amongst those, Nintendo and Sony are Japanese companies.
Three major vendors have superior market share in the industry; though by sales and units sold, Nintendo has always the largest. In 2006, release of Nintendo’s Wii has reached its peak. Though, Nintendo Wii’s units sold has made average 20 million a year in few years after the release; this situation only lasts till 2010. At the mean time, release of Sony’s PS3 was not sold at the same
level as Nintendo’s Wii at the beginning; though it has very stable product cycle and surpassed Nintendo’s Wii in 2011.
Maybe Nintendo thoughts declining of units sold is a normal phenomenon due to its product cycle; in the 2012 end, Nintendo releases 2nd-generation video game Wii U
and expects to reach another peak. Unexpectedly, unlike any previous generation of video games and made sales peak right after release, it only reaches merely average 3 million units sold a year. On the other hand, in the 2013 end, Sony releases its 2nd generation video game
PS4, and creates a new sales record 10 million units sold in the next year 2014. What are factors that affect video game industrial leader Nintendo and Sony’s current situations? This research will focus our discussions on two generations of video games Wii, Wii U, PS3, PS4 that affect both vendors current situations, regarding their game software and after-sale market conditions. At the end of the report, we make SWOT analysis based on Nintendo and Sony’s two generations’ video game, and compare their strategic differences that bring current results and also suggest using different strategies that will bring new development of video game industry in the future.
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