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1 Comment
Wharton Prof Debunks Market Share Myth
First lets get something straight, Sony and Microsoft are catering to the same audience, thats why they are battling so hard for market share. Nintendo overlaps sightly but caters more to a casual audience of gamers. Nintendo thrived this go around by focusing on innovation and identifying a new market. This has absolutely nothing to do with focus on profits vs lead-loss.
Second, focus on profits and not market share almost sunk the PS3. Its high price margin made it unattractive to customers. Without taking a hit on manufacturing costs Sony and Microsoft couldn't sell their consoles. The video game industry is actually a poster boy for market share maximization. Companies like valve and others allow the gamers to create and distribute content for free, and the company gets nothing in licensing fees.
I think we already see enough profit maximization in this country. Lets celebrate the few industries that do provide something for free every once in a while.