SWOT

Strengths for the Nintendo Wii


-Innovative and simple game-play using a mixed of motion sensitivity and aiming device.  
-Affordable ($250)for people of a variety of economic classes.

Opportunities for the Nintendo Wii

-Potential to gain market share by offering lower priced game system as other competitors prices continue to rise

-Opportunity to compete based on measures other than price, such as user gameplay and social abilities

Threats to the Nintendo Wii

-Lack of market power could make it difficult for Nintendo to re-emerge

-Lower price could result in lower quality graphics

-Competitors may be able to reach economies of scale if sales reach a certain level, resulting in a decrease in competitors' price, ruining Nintendo's price advantage

Weakness of the Nintendo Wii

-Nintendo always tries to keep video games affordable. Nintendo’s Wii starting price was

$250, and Sony’s Playstation 3 that released within the same month had a price of $599.

Even though Nintendo has sold more Wii units than Sony’s Playstation 3, there is still

some notable complaints from hardcore gamer consumers. The big difference between

the two game systems is graphics. The Playstation 3 has graphics that look near real-life

using a 256MB GDDR3* graphics card where the Wii has a 64MB GDDR3* graphics

card.

-Due to the failure of the Nintendo GameCube and Nintendo 64 during those 8 years, they

chose to be more cautious when producing Nintendo Wii's. They couldn't foresee the

success that the Nintendo Wii would have, and therefore produced too few Wii's

compared to the current demand.