Price Strategy.
Figure 1: price strategy
Quality Strategy.
Figure 2: Quality Strategy
Innovation strategy.
Figure 3: Innovation strategy

Figures 1, 2, and 3 show the different maps of strategic groups that outline the competition between the three main players in the video game industry. The 3rd generation video game consoles have been chosen to identify the main variables in the video console segment. According to the case study provided by John Gamble, the video game industry is mainly control by technology advancement/quality, innovation, and price variables. The variables have bee benchmarked on the needs of consumers. By using the 3rd generation devices in the console segment, each of the three competitors can be located on the three different maps of strategic groups.

Nintendo has sold more units of the Wii due to its lower price, innovative controller, and advanced motion sensors that enhanced the gaming experience. Therefore, in as much as the Wii was less advanced in comparison to other devices in the same generation, it appealed to a bigger market due to the proper use of innovative and pricing strategies. According to the information provided by the maps of strategic groups, Nintendo is likely to forge ahead with its pricing and innovative approaches as they have worked well for it.

Microsoft’s Xbox 360 was an advanced third-generation console that came with a DVD optical drive, enhanced storage capacity, and excellent display. The device provided the quality desired by hardcore gamers but was a bit expensive compared to Nintendo’s Wii. The maps of strategic groups show that Microsoft used both quality and pricing strategies in the development of the Xbox 360. The company is likely to adopt an innovative approach in its future video game consoles. According to the maps of strategic groups, Sony seems to have mainly used the quality strategy in the development of the PS3. The video game console came with a blue ray optical drive, enhanced computing capacity, among other specifications. The device was, however, too expensive, retailing between $499 and $599. Sony is likely to continue with its quality strategy but may additionally adopt the innovation strategy.