Standing Out From The Crowd: Why Console Manufacturers Must Differentiate To Survive

What’s A Q*Bert?

The home console sector, at all points since the early 80’s, has had at least two consoles out at all times with a variety of systems available to the gamer.  In the early eighties, for instance, the Colecovision, Vectrex and Atari 5200 occupied the market, all being launched in 1982.  They are now all gone, however.  These once mighty home console manufacturers are now footnotes in the gaming history books.

Even Sega, who once led the industry along with rival Nintendo, now solely concentrate on producing software.  The firm was sadly forced to bow out of the console market in 2001 after the failure of their underrated Dreamcast.  Why do these giants fall?  Well, consoles must seem unique in some way in order to compete, with some appealing more than others.  In short, companies have to distinguish themselves to attract to the astute video gamer.

Link, Chief, Kratos et al…

In an increasingly homogenised world how do console companies appear to offer something different over their rivals?  The main way is in their software.  Almost everyone who buys a console does so to play games.  Therefore, it stands to reason, that if one console has more attractive titles available then consumers will choose that machine.

As many know, console manufacturers have first party, company owned intellectual properties (IP’s) that are only released on their particular machines.  These include Nintendo’s Legend Of Zelda and Mario Bro’s games, the Uncharted and God Of War titles from Sony and Microsoft’s Halo series, among many, many others.  Thus, in order to be able to play these titles, the gamer must purchase a specific home consoles.  So far, so clever.

Are You A Loyal Xboxer?

Furthermore, the big three home video game companies of the current generation, Nintendo, Sony and Microsoft, have tried to separate themselves through other means.  Each machine has a distinctive selling point.  In Nintendo’s case it is certainly the interface.  The Wii U with its touch screen game pad, and the Wii before it with its motion controls, is totally unlike any other home console on the market.  Neither the Wii U nor the Wii is quite as powerful as other such machines of the same ilk, but if they can offer a completely different playing experience then this doesn’t matter.

Microsoft, on the other hand has cultivated an excellent online, multiplayer medium with Xbox Live.  This was first launched on the original Xbox, but with the release of the Xbox 360 it went from strength to strength, becoming the world’s most successful online gaming platform using a home console. Sony’s advantage, on the other hand, is that their online provision is free unlike Microsoft’s paid for service.  Furthermore, their machine boasts a high definition blu ray disc player appealing to those who wish to use the machine for other home entertainment pursuits also.

I Don’t Want That One! I Want THAT One!

In essence, the chief goal of these differences, be it video game releases or slight variances on how the machine operates, is to instill within us, the discerning gamer, brand loyalty.  How many times have you read individuals online bad mouthing one console while defending another?  Too many, I bet.  These self confessed ‘fanboys’ are staunch supporters of one particular brand.  If one boils it down, is an Xbox 360 really that dissimilar to a PlayStation 3?  You wouldn’t think so, but there is a community who do.  Those who flippantly state that they’d rather die than play an Xbox or never play a video game again than use a PS3.  This unwavering allegiance to a specific company is what all home console manufacturers are hoping to create.

Becoming The Next Big Thing

A crafty use of the media also helps.  The original PlayStation was the first home console to really be considered ‘cool’.  This hip-factor was created artificially by its coverage in lifestyle, fashion and men’s magazines.  Moreover, some of the platforms gaming characters, most notably Tomb Raider’s Lara Croft, entered the zeitgeist of the day.  Many gamers who were converted to use the PlayStation then continue now to buy the latest iteration of the Sony machine.

Likewise, Nintendo used the media extremely cleverly to attract more ‘casual’ gamers with the release of the Wii.  Due to its motion controls, although not completely original to the more seasoned video gamer, Nintendo’s Wii attracted a lot of hype and buzz.  This in turn sold a massive amount of units to those who may not usually purchase the latest gaming device.

Though initially positive, this particular media attention started to affect Nintendo negatively, however.  Many long standing Nintendo gamers, myself included, felt that the company was spending far too much time trying to court the casual market.  They were accused of neglecting their devoted core gamers, the ones who had stuck with them, in order to attract those who had no affiliation to the brand.

This is the failing of advertising and media hysteria.  It can sell your machine by manufacturing excitement, but it cannot create brand loyalty.  That is fostered over many years of catering for your users and providing a decent level of customer service.   On the other hand, a decent combination of both hype AND loyalty is the best mix, as alone having a committed fan base isn’t enough; just ask Sega!

 

So, Where Are We Now?

In today’s cutthroat market, it is becoming harder to seem distinctive from the other guy.  Most of the huge, third party published video game titles get released multi-format, that is to say, on all available machines.  As the cost of producing games increases it isn’t deemed financially lucrative for developers to only release on one particular machine.  Exclusivity contracts, where one specific title is linked to but one console, is far more rare nowadays.  The biggest game series’ such as Assassins Creed, Hitman, Tomb Raider and Call Of Duty are all brought out on a plethora of home formats.

As most of the third party games will be coming out on all consoles, home video game manufacturers must work doubly hard to sell their product.  That means generating hype and publicity every time a new console is going to be launched for starters.  Nintendo’s release of the Wii U was a relatively modest affair, but we’ve already seen Sony go to town.  Their worldwide press conference to announce the PlayStation 4 on February 20^th 2013 was colossal and we never even saw the hardware!  Microsoft will soon be similarly gearing up with neither company pausing for breath until their consoles see the light of day (most probably Christmas 2013).

As long as, no matter how it’s implanted, gamers feel an affinity to a specific brand they will support it with their wallets.  Big firms, not just in the video game sector, will continue to use all the business, media and marketing tricks available to them to drill this allegiance in their consumers.  For the sake of argument, let’s just get along and agree that all console brands all great…Nah!