The 1980s were the “Nintendo” decade in video games, while the early 1990s saw Sega promotion on the basis of the next generation, 16-bit technology. Until early 1994, Nintendo and Sega divided about equally the worldwide installed base of 16-bit home video game systems. Nevertheless, for 16-bit systems offer superior graphics, sound and gameplay compared to previous 8-bit systems, as many observers them a transition period technology which is expected, will be replaced in the next two to five years. The cas … Read more »

The 1980s were the “Nintendo” decade in video games, while the early 1990s saw Sega promotion on the basis of the next generation, 16-bit technology. Until early 1994, Nintendo and Sega divided about equally the worldwide installed base of 16-bit home video game systems. Nevertheless, for 16-bit systems offer superior graphics, sound and gameplay compared to previous 8-bit systems, as many observers them a transition period technology which is expected, will be replaced in the next two to five years. The case focuses on the efforts of 3DO, a high-profile U.S. start-up in order to promote a new 32-bit platform. The new technologies of Nintendo, Sega, Sony, Philips, and Atari are developed. By expanding the scope of the game, 3DO engineered a window of opportunity in relation to the established players, Nintendo and Sega. Focuses on how 3DO decided to take advantage of this opportunity. Demonstrates, in particular the strategy of introduction of new players in a game. Planning to make money from the licensing of software technology, 3DO gave away the hardware technology for free.
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Adam Brandenburger
Source: Harvard Business School
10 pages.
Release Date: 10 April 1995. Prod #: 795104-PDF-ENG
Power Play (C): 3DO in 32-bit video games HBR case solution