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Updated: Wednesday, 09 May 2007
Fils-Aime: Nintendo Tapping “White Spaces”
By Tom Ivan
Nintendo of America president Reggie Fils-Aime has been speaking about the technical divide that separates the technophiles from the technophobes, the active consumers from the potential consumers, and how Nintendo is attempting to bridge the divide by tapping the “white spaces.”
In a new report on CNet, Fils-Aime examines the marketing challenges faced by video game companies. He suggests that while core consumers will always respond to technological advancements, those same advancements will consistently deter potential consumers concerned about costs and demands on their time, hence creating a niche market.
“For us, this raised two fundamental challenges that I believe now, or someday soon, will confront almost every consumer-facing technology business. First, how do you satisfy the core while still expanding appeal? And second, how do you leverage your strengths against entirely untapped audiences--to the so-called "blue oceans" in popular marketing speak?”
The answer is to innovate. Fils-Aime forwards one of Harvard professor Clayton Christensen's models of innovation. “Provide a new product that actually underperforms on an established industry metric for "progress," and substitute an alternative that typically is smaller, less expensive and easier to use.”
Fils-Aime cites a McKinsey study that suggests a middle ground exists where products that follow this model could flourish. “It describes 'white spaces,'" or markets that exist (perhaps unrecognized) between typical product categories. They "fuse consumer benefits" by combining "brands, technological breakthroughs or insights" in new ways.”
According to Fils-Aime, the Wii satisfies the above-mentioned model of innovation and capitalizes on a consumer middle ground. “It is purposely so simple and intuitive that anyone in a household can use it. It also incorporates functions like a photo browser, an Internet browser, and custom news and weather channels, which lead some people to wonder what these elements have to do with video games.” He says the Wii’s multi-functionality is in fact “a conscious move into "white space"--in this case, that sizable gap between technophiles and technophobes where consumers just want an understandable way to catch up with the times.”
Fils-Aime: Nintendo Tapping “White Spaces”
By Tom Ivan
Nintendo of America president Reggie Fils-Aime has been speaking about the technical divide that separates the technophiles from the technophobes, the active consumers from the potential consumers, and how Nintendo is attempting to bridge the divide by tapping the “white spaces.”
In a new report on CNet, Fils-Aime examines the marketing challenges faced by video game companies. He suggests that while core consumers will always respond to technological advancements, those same advancements will consistently deter potential consumers concerned about costs and demands on their time, hence creating a niche market.
“For us, this raised two fundamental challenges that I believe now, or someday soon, will confront almost every consumer-facing technology business. First, how do you satisfy the core while still expanding appeal? And second, how do you leverage your strengths against entirely untapped audiences--to the so-called "blue oceans" in popular marketing speak?”
The answer is to innovate. Fils-Aime forwards one of Harvard professor Clayton Christensen's models of innovation. “Provide a new product that actually underperforms on an established industry metric for "progress," and substitute an alternative that typically is smaller, less expensive and easier to use.”
Fils-Aime cites a McKinsey study that suggests a middle ground exists where products that follow this model could flourish. “It describes 'white spaces,'" or markets that exist (perhaps unrecognized) between typical product categories. They "fuse consumer benefits" by combining "brands, technological breakthroughs or insights" in new ways.”
According to Fils-Aime, the Wii satisfies the above-mentioned model of innovation and capitalizes on a consumer middle ground. “It is purposely so simple and intuitive that anyone in a household can use it. It also incorporates functions like a photo browser, an Internet browser, and custom news and weather channels, which lead some people to wonder what these elements have to do with video games.” He says the Wii’s multi-functionality is in fact “a conscious move into "white space"--in this case, that sizable gap between technophiles and technophobes where consumers just want an understandable way to catch up with the times.”
