3 Do

Home Video Games ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Ralph Baer’s “Brown Box”, 1967 Nintendo Entertainment System (NES), 1983

Targets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Technologies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Opportunities 3DO Saw ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Market and Its Neighbors, 1991 World-Wide Home Video Game $3 Billion North America Entertainment Arcade games, Movie theater, Video Rental Japan Europe Asia Home Video Game Companies belong to: All other amusement and recreation industry (713990)‏ $29 Billion Overall

Players in Industry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Source of Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Business week Jun., 9, 1997 ,[object Object],[object Object]

Multiple Layers Industry Value Added * $50 Retailers $27.5 Developers Software Hardware $5 License Fee $450 – Retailers Manufacturer ** (Closed Architecture)‏ 1~5% Margin * In case of Sega’s case. ** Only estimation is available, but some says that retail price could be lower than manufacturing cost. (http://www.alexassoc.com/white/sony.shtml)‏ $19.5 Revenue

Industry Structure Map Independent Collaborative Closed Open Original map was drawn by Hirabayashi Hisakazu, Akio Koichi (1996), and slightly modified ,[object Object],[object Object],Industry ,[object Object],[object Object],[object Object],[object Object]

Market Share ,[object Object],[object Object],[object Object],From: Feasibility analysis of domestic game system development, Hee Soo Kim, Jan, 2002 Total Revenue (in Million$)‏ * Excluded NEC’s TurboGrafx-16, which discontinued in 1993, and Philips’ CD-I, which had minimum market share.

What’s Attracts Gamers? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],…

Strategic Move: 3DO (1)‏ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Move: 3DO (2)‏ ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3DO’s Multiple Layers Value Added $75 Retailers $40 Developers Software Hardware $3 Royalty Fee $700 – Retailers * Manufacturers (Open Architecture)‏ * Retail price is vary from manufacturers to manufacturers. Any manufacturers can make 3DO if it is comparable with 3DO. No License Fee Revenue

Perceptual Map, 1993 Own Game Titles Few High Low Performance Many Super NES $200 Genesis $190 3DO $700

Strategic Reaction: Sega ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Reaction: Nintendo ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic Move: Sony ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Perceptual Map, Late 1994 (with SONY)‏ Own Game Titles Few High Low Performance Many Saturn $450 (400)‏ 3DO $500 PS-X $500 (300)‏ Nintendo64 $250 (200)‏ * Number inside of ( )‏ Is actual retail price

Epilogue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why 3DO failed? Too Expensive (High entering cost)‏ Few Titles and No “Star Player” No focus on its identity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pitfalls: Trip Hawkins should not: (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pitfalls: Trip Hawkins should not: (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],* Shakeup at SONY: What's the Playstation Costing? (http://www.alexassoc.com/white/sony. html )‏

3 Do

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