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case study, Marketing Management

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AThe rise of personal computers in the mid 1980s spurred interest in computer games. This caused a
crash in home Video game market. Interest in Video games was rekindled when a number of different
companies developed hardware consoles that provided graphics superior to the capabilities of
computer games. By 1990, the Nintendo Entertainment System dominated the product category. Sega
surpassed Nintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per
cent of Video game market and was one of the most recognized brand names among the children.
Sega?s success was short lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit
system. The product was a miserable failure for a number of reasons. Sega was the primary software
developer for Saturn and it did not support efforts by outside game developers to design compatible
games. In addition, Sega?s games were often delivered quite late to retailers. Finally, the price of the
Saturn system was greater than other comparable game consoles. This situation of Saturn?s misstep
benefited Nintendo and Sony greatly. Sony?s Play Station was unveiled in 1994 and was available in
70 million homes worldwide by the end of 1999. Its “Open design” encouraged the efforts of outside
developers, resulting in almost 3,000 different games that were compatible with the PlayStation. It too
featured 32-bit graphics that appealed to older audiencesk question #Minimum 100 words accepted#

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