Happy Competitors

 

On June 27 BlackBerry will launch its BBM messaging application for both iOS and Android smartphone platform users for free. BBM has been of one the key features in all BlackBerry smartphones.  According to blackBerry there are currently more than 60 million monthly active users of BBM, who send and receive more than 10 billion messages each day. This equivalents nearly twice as many messages per user per day as compared to other mobile messaging apps.

Few years ago BBM was the most active messaging application in the market and the reason for many people not to switch to an iPhone or Android cellphones. It was also very secure, reliable and was also equipped with voice, video calling and screen sharing and was on its way to become into a new type of social network. Even to this date there is nothing else that comes close to such service.  This gave Black Berry the edge over all the smartphones in the market and had established a very loyal fan following.

But soon blackBerry will make BBM available on both IOS and Android devices and this might just take away its edge.  As BBM was the main platform for people to interact on their BlackBerry smart-phones, this new service will give its consumers the ability to use this application onto any one of those devices of their choosing and I think this will create a big problem for BlackBerry in the near future.

I think BlackBerry should have hold on making this move and should have seen how their new smartphones will perform and on based on that they should have made the decision of what to do with their BBM application on whether or not they should put in the hands of their rival smartphone companies like Apple and Google.  To me it also seems weird that they would launch this application on other IOS and android devices before launching it on to their BlackBerry PlayBook.  Does this mean that they have completely given up on their tablet market? If so what kind of message would this send to their consumers and investors?

Another thing that BlackBerry has done is that they will be providing the BBM application for free to its both IOS and android users. I don’t think this was a smart move from a management standpoint. If you know that so many people are using your application and that it is one of the best one out in the market then they should have charged some sort of a purchase fee for the application knowing that people will pay for it no matter what. This would have given some sort of extra side revenue that they could have applied to their operations.

I also believe that if they would have acted on this sooner when the demand for application was even greater couple years earlier then what it is today, it might have still worked out to their benefit.

Do you think that this move will prove profitable for BlackBerry or will it backfire? Also should they have acted earlier on this when other applications like What’s App, iMessage were not as popular?

Sources:

http://n4bb.com/multiplatform-bbm-blackberrys-play-biggest-social-network/

http://www.yolevski.com/blackberry-bbm-for-iphone-and-android/

http://bgr.com/2013/06/05/blackberry-bbm-android-iphone-preloaded/

Changing the Gaming Landscape

 

Recently Microsoft announced their newest version of its Xbox series, the Xbox One. The Xbox has been one of the most profitable products for the Microsoft in the last decade and with Xbox One Microsoft hopes to continue that tradition. When Xbox 360 was last released around eight years ago there were no iPads; we still had smart phones with keyboards and the smart phone app stores were still in there initial phase. But a lot has changed in the last eight years; today games can be played from virtually anywhere and on any device with everyone online.

Because of the rise in the mobile gaming and its low prices, gaming systems like Xbox, Play-Stations, Nintendo has started seeing decline in their sales.  According to a report released by a leading technology research firm IDC, they concluded that paying for games on smart-phones and tablets would outpace paid gaming on portable video game hand-held devices by the end of the year. According to Nick Wingfield’s article in the New York Times U.S retail sales of game hardware and software fell by 25 percent to $495.2 million in April from $657.3 million earlier last year. This means that more and more people prefer mobile gaming rather then the old traditional gaming methods. This also proves that the life cycle for these gaming consoles will be cut short drastically unless they innovate their products for more use then just gaming.

So to keep up in the race, companies like Microsoft has started innovating their gaming consoles into more useful ways. Microsoft noted saying that they want to see their Xbox product as a more useful tool in peoples living room then just for gaming purposes. So to achieve this they want the Microsoft’s technology to take the center stage of a home entertainment system, which would end up giving people access to online videos. Apart from that Microsoft is also planning to develop its own original live-action television series that would be accessible through the Xbox. To stay ahead of the competition and to stay in the market they are also working with National Football League to develop an app for Xbox that would let players interact with their fantasy football teams while watching the live game.

From all this innovation that Microsoft is bringing in to the new Xbox, it is clearly evident that they are trying to do more with their consoles then just using them for gaming purposes.

Surely technology has come way forward then it was then Microsoft’s earlier product was launched eight years ago but do you think that will this affect the products life cycle? Will the mobile industry have drastic effect to gaming hardware systems like the Xbox, Nintendo, or PlayStation? Will innovation in their product similarly to what Microsoft has done will help them stay survive for a long time as it previous products?

Sources:

http://www.nytimes.com/2013/05/22/technology/xbox-one-faces-wider-range-of-competition.html?_r=0

http://bits.blogs.nytimes.com/2013/04/24/paid-games-on-smartphones-to-outpace-handheld-consoles/

Picture:

Microsoft’s Xbox One gaming console.

(Credit: James Martin/CNET)