The gaming console industry is a constant change to be the best in the industry and to gain and maintain market share. The battle between Microsoft, Sony, and Nintendo has reached new heights with innovation and pricing wars. These companies have also offered differentiation to meet the industry competition. The industry is changing with an increase in PC and mobile gaming. The mobile market is up with 30% gain in revenue (Gaudiosi, 2016). Sony and Microsoft have an offensive strategy by creating innovations in the virtual reality initiatives. Virtual reality has also become a game changer in the mobile gaming industry. Nintendo has utilized both offensive and defensive strategies to maintain a successful market share. They have achieved this by implementing the Wii which they were first to market with this form of technology. Nintendo has also targeted a demographic to a more casual gamer with teens and families (Gaudiosi, …show more content…
Unfortunately, with the demand for the PlayStation 4 console, it was unable to gain most the market. They hope the virtual reality unit will increase their market share with an estimation of over two million units being sold. While Sony and Microsoft are leaders in the gaming console industry, Nintendo is making a comeback by being a differentiator in the market. They have increased their presence in the mobile market with the mega hit game Pokémon Go (Gaudiosi, 2016). Microsoft is the number two leader in gaming consoles with 24 million Xbox One units being sold in 2016 (Gaudiosi, 201). Like, Nintendo they have been both offensive and defensive in their strategy by offering higher technology in high definition, resolution and multiple upgrades. They also became a low-cost provider at almost $150 cheaper than its top competitor,