Competitive Response

HP+Nintendo can expect to see a strong competitive response from competitors in both the television and console market. In the short term, television manufacturers will include significant price reductions on their latest television releases, especially those featuring HD, and LCD or Plasma technology. Looking to the future, these companies may attempt to forge their own alliances with video game companies in order to produce a similar, competing product.

Sony, who has enjoyed the dominant position within the console market with the release of both PlayStation 1 and 2, will definitely retaliate against the joint venture of HP and Nintendo. Initial responses may include drastic price reductions to the PlayStation 3 in order to prevent large market share losses. In the long term, as Sony is already a leading television manufacturer, the company will be able to produce a copycat product by combining their next generation PlayStation and televisions.

While Microsoft will likely take the same action as Sony in the short term, by lowering prices on the Xbox 360, the company will have a harder time in the long run in terms of retaliation. As they are not currently a competitor within the television manufacturing industry, Microsoft will have to partner with a leading manufacturer in order to create their copycat version of the product. Likely partners for Microsoft include the aforementioned competitors within the industry, Samsung, Sharp, Phillips Magnavox, or Panasonic.