When Should Nintendo Launch its Wii? Insights From a Bivariate Successive Generation Model

Philip Hans Franses and Carlos Hernández-Mireles

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: November 2006 most likely marks the launch of Sony’s PS3, the successor to PS2. Later, Nintendo is expected to launch the Wii, the successor to the GameCube. We answer the question in the title by analyzing the diffusion of the earlier generations of these consoles, and by using a new model that extends the successive-generations model of Norton and Bass (1987) by introducing two market players. Based on interviews with consumers and with retailers, we calibrate part of this model. The main outcome is that an optimal launch time is around June 2007, as then total sales of Nintendo’s GameCube and Wii would get maximized.

Keywords: Competition; New Products; Successive Generations; Video Consoles (search for similar items in EconPapers)
JEL-codes: C44 C61 L19 M M31 (search for similar items in EconPapers)
Date: 2006-07-04
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