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Playstation 3 vs. Xbox 360: video games consoles in the US in 2006

Author: Cool, Karel O. ; Paranikas, PetrosINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 2008.Language: EnglishDescription: 31 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: In the ongoing battle among video game consoles, the case describes how the industry evolved from the early era of Atari domination up to the latter-day rivalry between Sony (PS3), Microsoft (XBox360) and Nintendo (Wii). It discusses how Sony succeeded with the PS1, despite being a late entrant, how Microsoft lost with XBox, despite imitating Sony, and how the battle changed again with Microsoft’s early launch of the XBox360. The case also gives information on the video game supply chain.Pedagogical Objectives: The case allows an analysis of the strategies for entering markets with dominant incumbents benefiting from high economies of scale, scope and network externalities. Specifically, the setting shows how under certain conditions latecomers do not face an overwhelming disadvantage and how they can develop a winning strategy.
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INSEAD Case Asia Campus
Archives
Print Consultation only
INSEAD Case Europe Campus
INSEAD Publications Display
Print Consultation only BC008599
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

The case allows an analysis of the strategies for entering markets with dominant incumbents benefiting from high economies of scale, scope and network externalities. Specifically, the setting shows how under certain conditions latecomers do not face an overwhelming disadvantage and how they can develop a winning strategy.

In the ongoing battle among video game consoles, the case describes how the industry evolved from the early era of Atari domination up to the latter-day rivalry between Sony (PS3), Microsoft (XBox360) and Nintendo (Wii). It discusses how Sony succeeded with the PS1, despite being a late entrant, how Microsoft lost with XBox, despite imitating Sony, and how the battle changed again with Microsoft’s early launch of the XBox360. The case also gives information on the video game supply chain.

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