Internet has made a big influence for new technology innovations. Today, we don’t imagine a day without connection to the world. Internet has become a significant part of our lives. When few years ago we would say “sorry, I missed your call”, today, “sorry I missed your call, text, email, Skype, Facebook post, Tweet and etc.” While it is easy to keep up with technology for us, some companies are having difficulties. A good example is well known Kodak. The company fell behind new technology and therefore was not able to compete in the market. In contrast, Sony has recognized the impact of new technology and the need to adjust their products. Sony Corp. has decided to buy Gaikai Inc., which is known for streaming videogames over the internet. The videogame industry has changed significantly from years ago: from the dedicated machine for games to online games, today. It is expected that all videogames will shift to online eventually. By combining both companies, Sony will gain technological strength which is significant in competitive market.
Sony has learned a lesson on missing out on moving technology. Years ago, Sony pioneered a portable music player; however, the company did not improve since and Apple took over. Sony did not recognize the significance of improving the music players and as a result iPods and iTunes took place instead.
It is very important for companies to foresee the improvement in technology and demand for it. The companies must adjust their products to gain competitive advantage in the market. In class we have already learned the importance of product design. The company must identify customer wants and needs, also identify how the product will satisfy the customer. Company must develop importance ratings and evaluate the competing products.
Do you think the videogame industry will become available purely online? Do you support Sony for acquiring Gaikai Inc.?
Wakabayashi, Daisuke (2012, July 3).Sony Makes a Shift To Streaming Games. WJS, page B3.