Thursday, September 22, 2011

Disruption is the name of the game

(Disney's) dismal efforts in gaming have been tied to expensive failures created for console games, particularly Microsoft's Xbox 360 and Sony's PlayStation 3. Those titles require hundreds of programmers and take two to three years to finish, the company said.
Mobile games, on the other hand, can be created by teams of fewer than a dozen, and can be brought to market in about six months. 
The thing about a disruptive product is that you never know what it's going to hit next.  Predicting that the iPhone was going to change the phone industry and the carriers was easy. But a disruptive product is like throwing a large stone in a small pond. The waves just keep extending further and further and further.

Today's disrupted industry? Gaming.

Critics mocked initial observations that Apple's iPhone could possibly challenge dedicated mobile game devices like the Nintendo DS and Sony PSP two years ago, but now the App Store is rivaling the online markets of the top game consoles, a remarkable turn of events given how new both the App Store and the iPad are, and particularly given how inexperienced and even resistant Apple has been when it comes to embracing gaming as a market. 
One of the signs of a disruptive produce is that the incumbents don't feel threatened. Microsoft's CEO famously laughed at the iPhone. Other CEOs were no more prescient than he was. The iPad was challenged at first because everyone thought it would fail.

Gaming is being disrupted today, in part, because they refused to believe that the iPhone and iPad could become a threat. If you don't want your company disrupted, be sure to look for trends, not willfully ignore them.

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