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Sony, Microsoft, and Nintendo

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The number of consumers that play video games nurtures a competitive culture among the companies in the gaming industry, especially between the “Big 3” companies in the US – Sony, Microsoft, and Nintendo. Each company is employing different strategies and business models in order to capture a percentage of the market, which is a difficult challenge because of strict competition. All companies in the gaming industry must cope with rapid technological development, create a business model, and perform well in the market to attract the interest of investors and potential business partners. Microsoft attempts to succeed in the market by capitalizing on the uniqueness of the Xbox 360. Microsoft differentiated Xbox 360 with other gaming consoles by focusing on the interests of consumers. Xbox 360 has an impressive graphics and allows gamers worldwide to network through Xbox Live. Aside from gaming, Microsoft also allows gamers to access varied content such as movie downloads from Microsoft’s partner film production organizations like Lionsgate and Warner Brothers. Sony, on the other hand, offers various formats and platforms for gaming. Aside from the Playstation, Sony chose to diversify its products by offering handheld gaming in line with current trends – people’s interests in wireless devices. Sony’s strength also relies on the number of partnerships it has with game developers. The Playstation has the largest gaming collection among its competitors, which means more opportunities for the company to gain the attention of a larger consumer base. Unlike Sony and Microsoft, Nintendo chose to focus on selling its gaming consoles. Nintendo admittedly does not have advanced technology like Microsoft or large partnerships like Sony, but the company is surviving because it offers a gaming console that nurtures an interactive gaming experience. With Nintendo’s Wii, for instance, the company offers consumers a different gaming experience because gamers can interact with the system through body movements. Nintendo targets both male and female consumers from all ages, while Sony and Microsoft primarily target young adult and adult gamers. Overall, all three companies survive competition in the gaming industry because they offer different services and products instead of competing from a singular standard. Consumers can choose specific video platforms based on their interests and preferences.

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