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 1. Market and Competitive AnalysisProduct MarketThe product market consists of Video Game Console (Hardware Part). The global market is worth$58 Billion in 2010. There are only three major players in the market – Nintendo, Sony and Microsoft.The global games console market consists of the total revenues generated by Nintendo, Microsoft andSony through the sale of their console platforms, including any handheld systems. Market values havebeen calculated using annual average retail prices for each individual market.Market AnalysisPorter’s 5 Forces:Threat of new entrants:The console gaming industry, is a market in which, only very technologically advanced and well-fundedcompanies can enter. Loyal customer bases and established subcultures have made it so new entrantswould have to provide something completely revolutionary to get customers to switch. Microsoft was thelast big company to join the competition and they struggled for a long time, despite being a well-knowntechnology giant.Competitor rivalry:Although this market has few leaders, the competition is fierce. Nintendo squares off with industry giantsSony (PlayStation) and Microsoft (Xbox). Each of the competitors is well funded and has the mostadvanced technological innovations at their fingertips. For example, Sony nearly went bankrupt tryingto beat out the competitors through innovation, and lost close to $700 million (on the PlayStation 3) in thefirst six months alone. Fortunately for Sony, they are a multi-billion dollar company and have cashreserves that Nintendo can only dream of.Threat of substitute products:In such a highly competitive market, there are of course strong substitutes. Each system started withtheir niche, but in order to grow market-share each has added features to eliminate the qualities that haveenabled competitors to differentiate. As they become more similar, the choice between them…...

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