Archive for December 1st, 2003

Game Over. Start Again? – Part 3

Posted December 1, 2003 By Earl Green

…and Burn

Late 1984 and 1985 belonged to the home computer market, and the handful of software makers that had survived the crash. But the industry wasn’t dormant. In 1983, Nintendo had made a splash in its native Japan with the Famicom game console – short for Family Computer. Vastly ahead of anything in the American market with its processing power, the Famicom seemed like a shoo-in for the American market until the crash happened. Nintendo initially approached Atari to market the Famicom in the western hemisphere, and at first, it seemed like a done deal – both sides were eager to join forces.

Then one of the biggest decisions in the entire history of the business of video games took place, signaling the rise of one company and the fall of the other – and all because of a misunderstanding.

At a 1984 Consumer Electronics Show, Atari and Nintendo were close to inking the Famicom distribution pact. Very close. As a show of good faith, Atari had received rights to translate Nintendo’s games for the U.S. home computer market, and the future looked bright – until Atari executives noticed a new version of Donkey Kong running on an Adam computer at Coleco’s booth. Infuriated, they confronted their counterparts at Nintendo, who threatened to yank the home console rights out from under Coleco. By the time the misunderstanding was settled, there had been a changing of the corporate guard at Atari, and the deal was off. Nintendo was on its own, and by the time it made it to market with the American version of Famicom – now called the Nintendo Entertainment System – U.S. investors and consumers had turned a cold shoulder toward the video game business.

Through a series of brilliant marketing maneuvers, such as including a remote-controlled robot called R.O.B. with the system and selling the resulting package as a toy, Nintendo broke into the market and kick-started a renaissance of the game industry. But it wasn’t about to let another crash begin: Nintendo clamped down on licensing and manufacturing rights, forcing anyone wishing to make games for the NES come to Nintendo to have the cartridges manufactured. Anyone circumventing the built-in security features which would allow only licensed software to run was swiftly and aggressively sued, including an Atari subsidiary, Tengen, which battled with Nintendo over the cartridge rights to a simple Russian puzzle game called Tetris. Nintendo won the battle, and the rest – including Tengen – was history. Read the remainder of this entry »

Beware of Posture Commandos

Posted December 1, 2003 By Dave Thomer

I am trying to sit very, very straight as I type this. If I do not, trained posture commandos might rappel in through the window and shove a plank down the back of my shirt, which I am heartily opposed to not simply because I fear splinters in my back, but because I like this shirt. You may ask why I am in such a state of heightened posture awareness. For one thing, I am genuinely trying to take better care of myself. More importantly, I am now convinced that my mother has posture control agents stationed throughout the city, and I don’t want to run afoul of any of them.

You may find it unreasonable that I, a 28-year-old husband, father, homeowner, and otherwise responsible adult, would fear my mother and her hawkish pro-posture stance. The problem is, as much as our parents might be looking out for us and proud of our accomplishments and whatever else they stick on those ‘For You, Son, On Your First Gray Hair’ greetings cards, some crucial sector of brain cells fails to let go of the fact that we’re the same individuals who would once choose Crayola over Sherwin Williams as a wall covering any day of the week. And no matter how hard we try to play that responsible adult, eventually, we will slip up and give them ammunition. Read the remainder of this entry »

Behind the Brands

Posted December 1, 2003 By Pattie Gillett

My dusty college marketing textbooks define brand loyalty as the “degree to which a consumer intentionally and repeatedly chooses one brand over another.” My mother just spent a week with me, helping Dave and I prepare for my first Thanksgiving at my new house. I now define brand loyalty as “the length of time one person will fight with a blood relative in the middle of a crowded grocery store before making a purchase.” I’ll spare you the bloody details but let’s just say that my mother and I have agreed to disagree on most of the decisions that one makes when one wheels their cart into a supermarket, namely brand decisions. (Come to think of it, we even had a brief spat over the choice of shopping cart but that’s neither here nor there.)

For many people venturing out on their own, the thrill of buying your very own Cocoa Puffs and dish detergent wears off pretty fast. Grocery shopping, whether you do it daily, weekly, or monthly, becomes a relatively irksome, repetitive, and expensive task. According to the Bureau of Labor Statistics, the average consumer unit (new government speak for household) spends about 14.5% of its annual income on food and grocery items. (However, this figure does include meals eaten away from home.) That’s quite a slice of pie. Read the remainder of this entry »