This slide shows the entire encroachment framework
with the six different types of new products.
But for now just notice the two axis.
On the one we have the core attribute performance which
could be lower or higher than the original product.
And on the y axis we have
the new attribute performance which could be weak, moderate or strong.
Let's begin with a brief history of the video game industry.
In 1985, Nintendo, until that point, was just making game cards. For example,
Disney, entered the video game scene.
Anyone who was alive in the 80s,
would probably remember the iconic Super Mario Bros.
The controller at this point was just a little brick which only had 5 buttons.
Ten years later, the video game industry has moved to 3D gaming and as you can see here,
the controller is somewhat more complex.
Core gamers, of course, love this because this
allowed them to have more control over the games,
but casual gamers were turned off by this.
Another decade later, Nintendo's graphics have not
improved that significantly but they did offer something new.
Instead of controlling the game with the 17 button controller,
Nintendo offered the Wii mote that was motion sensitive.
In the same generation,
Sony and Microsoft were going high end,
meaning, they offered high definition graphics as well as 7.1 surround sound,
neither of which Nintendo offered on their Wii.