The intention of this assignment is to figure out if timing strategies are relevant for the innovation process. In case to do this the author took the example of the video game industry to deflect several timing strategies. The choice for the video game industry depended on the high innovation ratio in this industry. Since 1977 at least every year was a new console released which was in handling, performance, or technology different from the ancestor products.
The target is the evaluation of timing strategies as a success driver for this industry. The focus lay on the time-to-market timing and the market-entry timing.
To come to a result at first the term innovation will be defined. The second step is a description of the innovation process. Out of the innovation process the author will deflect different timing strategies. The next part of the assignment will be a short overview of the video game industry. After that a case study will follow which reflects the release of video game consoles of the last 20 years beyond the aspect of time-to-market and market entry timing. In the end the author will give a conclusion of the treatment of timing strategies in combination with innovations.
Table of Contents
1 Introduction
2 Innovation
2.1 Term definition
2.2 Innovation process
2.3 Timing strategies
3 Case study – Video game industry
3.1 Industry overview
3.2 Pioneers and followers
4 Conclusion
Objectives and Research Themes
The primary objective of this assignment is to evaluate the relevance of timing strategies—specifically time-to-market and market-entry timing—as key success drivers within the highly innovative video game industry, utilizing historical console data to illustrate various strategic approaches.
- Theoretical definitions of innovation and the structured innovation process.
- Classification of timing strategies: Pioneer, Early Follower, and Late Follower.
- Market dynamics and competitive landscape of the video game console industry.
- Comparative analysis of console success stories (e.g., PlayStation vs. Xbox vs. Wii).
- Impact of game titles and feature innovation on market leadership.
Excerpt from the Book
3.2 Pioneers and followers
In this chapter the author contrast pioneers with followers in the video game industry over the last 20 years. The starting point of this case study is the year 1990 where Sony developed a CD-ROM drive module for the Nintendo SNES™ system. In this position Sony was the time-to-market pioneer because no one else was able at this point to provide a CD-ROM drive for a video game console. But the SNES™ with CD-ROM drive was never released because of a discord between Sony and Nintendo.
Instead Philips released the Philips CD-i™ console as the first game console which was running with CD-ROM drive. On this point Philips was the innovative leader for CD-ROM based game consoles because on the one hand Philips developed the CD-ROM format together with Sony and on the other hand they used this technology to build and sale the first CD-ROM based video game console.
With 1 million sold units between 1991 and 1999 the console was moderate successful compared to Nintendo’s SNES™ which was released in 1990. Of the SNES™ 10 million units were sold until the year 2000. From 1990 to 1994 the SNES™ console and Nintendo become the market leader. Compared to Sega and the Mega drive™ system Nintendo get this status as a late improver based on the 16-bit technology.
Summary of Chapters
1 Introduction: Defines the research goal of examining timing strategies in the video game industry as a means to understand innovation success.
2 Innovation: Provides a theoretical foundation by defining innovation, explaining the innovation process, and categorizing various timing strategies like pioneers and followers.
3 Case study – Video game industry: Applies the theoretical framework to the history of video game consoles, analyzing market entry and time-to-market decisions of major manufacturers.
4 Conclusion: Summarizes that no single "best" strategy exists, highlighting that success depends on a combination of timing, core performance, and supporting content.
Keywords
Innovation, Timing Strategy, Video Game Industry, Time-to-Market, Market Entry, Pioneer Strategy, Follower Strategy, Product Lifecycle, Console Hardware, Competitive Advantage, Innovation Management, Success Drivers, Strategic Management
Frequently Asked Questions
What is the primary focus of this academic assignment?
The work investigates the importance of timing strategies—specifically how firms manage time-to-market and market-entry—to achieve commercial success in the innovation-driven video game industry.
Which theoretical model is used to describe the innovation process?
The author references the stage-gate model to illustrate how information gathering and decision-making drive the innovation process from initial concept to market launch.
How are timing strategies categorized in this research?
The work distinguishes between three main types: Pioneer strategy, Early follower strategy, and Late follower strategy, each offering different risk profiles and market advantages.
Why was the video game industry chosen as the case study?
The industry was selected due to its high innovation ratio, characterized by frequent hardware releases and intense competition that requires precise strategic timing.
What is the "time-trap" mentioned in the text?
The time-trap refers to the phenomenon where increasing product development costs and shorter product life cycles force companies to find a balance between speed and financial viability.
What are the key success drivers identified for game consoles?
Beyond strategic timing, the author identifies the availability of compelling game titles and the ability to integrate innovative concepts (like movement-based controls) as critical success factors.
How did Sony's status as a 'late improver' impact the PlayStation?
Despite being a follower in certain technological aspects, Sony achieved market leadership by providing a console focused purely on gaming, contrasting with competitors who prioritized multimedia features.
What role does the Nintendo Wii play in the author's analysis?
The Wii serves as a primary example of a successful product that prioritized an innovative, movement-based handling concept over high-end technological specifications.
- Quote paper
- Michael Beu (Author), 2013, Timing strategies of innovations in the video game industry, Munich, GRIN Verlag, https://www.grin.com/document/510910
