Case | HBS Case Collection | August 2011 (Revised September 2011)

Wii Encore?

by Andrei Hagiu

Abstract

Nintendo faced huge difficulties in July 2011. Sony's PlayStation and Microsoft's Xbox had caught up with the innovative motion-sensing controllers of the original Wii. And the new Nintendo 3DS handheld console had experienced a very disappointing start. Moreover, videogame consoles (particularly handheld ones) were facing increasing substitution from online and mobile games played on social networks and/or mobile phones (e.g. Zynga's Farmville). First, could Nintendo come up with a novel and innovative console once again (a Wii Encore) in order to escape head-to-head competition against its two larger rivals (Sony and Microsoft)? Second, how could Nintendo fend off the new substitutes, which were competing for a large portion of its customers?

Keywords: Competition; Innovation Strategy; Two-Sided Platforms; Brands and Branding; Entertainment and Recreation Industry; Video Game Industry;

Citation:

Hagiu, Andrei. "Wii Encore?" Harvard Business School Case 712-416, August 2011. (Revised September 2011.)