SWOT Analysis of Gaming Industry: Microsoft, Sony, and Nintendo

SWOT is acronym for Strength, Weakness, Opportunity, Thread. In Essence a SWOT analysis is geared toward predictability of obvious and hidden factors that may influence the outcome of marketing and sales.

In terms of gaming industry, Microsoft, Sony, and Nintendo with their respective hardware’s MS Xbox 360, PS 3 and Nintendo Wii illustrate the first tier competitors in U.S. as well as globally.

Microsoft Xbox 360
Strength:
• Integration of next generation DVD players i.e. HD technology
• Backward compatibility with previous Xbox games
• Online product – the first of its kind
• Lower price than most comparable competitor PS3



Weakness:
• Expensive hardware and games
• Production flows
• Direct competition with Nintendo because of equally large customer base

Opportunity
• Penetration of new markets in ME
• Penetration of untouched markets by means of bundling
• Partnership with Hollywood studios



Threat
• Lower cost competitor i.e. Nintendo
• Anti trust issues in Europe
• Hardware complication



Sony Play Station 3


Strength:
• Integration of next generation DVD players
• Backward compatibility with previous PS2
• Mostly Free Online product
• Recent decline in profits



Weakness:
• Expensive hardware and games

Opportunity
• Great product lunch covering global spectrum.
• Penetration of new markets in ME
• Penetration of untouched markets by means of bundling
• Partnership with Hollywood studios

Threat
• Lower cost competitor i.e. Nintendo
• Delays in production
• Constant strategy change



Nintendo Wii
Strength:
• Uniqueness of hardware motion detection
• Low cost hardware and software
• Intuitive usage



Weakness:
• Joystick liability
• Limited selection of software

Opportunity
• Penetration of new markets in ME  / Europe / Asia
• Marketing to novice gamers including seniors and adults


Threat
• Loss of potential customer because of lack of software selection and sophistication of games.
• Software developers abandon game development because of lack of adequate profits.