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Common marketing strategies used in the games console industry Tweet

The games console industry amongst the three main competitors, Nintendo, Xbox and Sony is very competitive. The three competitors use a variety of marketing techniques in an attempt for them to stay ahead of each other. Common marketing techniques which are used to increase sales include:

Limited editions: Many if not all of the games console manufacturer offer limited editions of their consoles. Nintendo Wii have introduced a black edition, while PlayStation introduced slim editions of their products.

 

Bundle deals: Another common strategy is the use of bundle deals in an attempt to attract customers. Manufacturers may offer more additional controllers, remote controls or games in order to tempt them away from competitors.

Captive deals: As price of games consoles fall, console manufacturer release much hyped games that can only be played on their platform. Games console manufacturers usually make most of their money on software sales. They get the console into the household by selling it cheaply then they capture the customer on the premium price for new game releases.

Optional strategies: Game console manufacturers are now adding optional extras giving consumers a choice of increasing the benefit they gain from their console. Nintendo with their Wii console are very good at this strategy. They have successfully marketed the Wii Fit Board as an optional extra and now also with the Wii Motion Plus. Xbox are doing the same with their Wii rival add on the Xbox Kinect

 

Pricing Strategies: Another common strategy used by the games console industry is the clever use of pricing during the life cycle of the product. Our diagram belows looks at this common strategy. When a new games console is introduced into the market the manufacture charges a premium price, the innovators within the market rush out to buy the product, because they want to be the first to own it. As the games console moves through the life cycle, the price is lowered , until eventually after a number of years the games console is at its lowest price point. At this lowest price point, laggards are most likely to buy the product, they have waited for a while and purcahsee at the point where the manufacturer will probably launch the replacment for their fading games console.

 

 

 

Whats new on the horizion?

• With the Wii the number one games console in the world, 2012 sees the launch of the new Wii U. With greater interactivity and HD features, will this product help Nintendo keep its crown?

• Sony will be launching the Playstation Vita their new handheld games console.

• The largest number of games downloaded are on smartphones, and smartphones are now moving into the games market. According to market research group NPD 50% of all games downloaded are for smartphones. They are cheap, addictive, and the smartphone saves the user carrying around another gaming device.