On November 18, 2012, Nintendo released its eighth-generation video game console

Question

On November 18, 2012, Nintendo released its eighth-generation video game console, the Wii U. In November 2013, Microsoft and Sony followed suit by releasing the Xbox One and PlayStation 4, respectively. Although these three video game consoles have dominated the video game console market, new microconsoles, which download games from application stores such as Google Play, have begun entering the market. One such microconsole is Ouya, which entered the market in 2013. f you were in charge of pricing at Ouya as it entered the market, what strategy would you pursue? explain

Explanation / Answer

Downloading games from google play is fair easy and convinient option than buying a whole set of video games differently. Thus, Ouya has this added advantage over its counter rivals already. Micro consoles being more convinient to handle and buy gives an opportunity to us to evaluate 'cost cutting' strategy to take over the video game consoles with cheaper games that can be downloaded anywhere anytime. The pricing strategy is based on first capturing a base market and then extending operations. With low cost, should also come timely innovation and updates to improve the mass of market captured.

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