Pachter Disses the Most Influential Business Book of the Last Decade

Pachter is at it again in a very funny GAF thread.

This “red ocean/blue ocean” stuff is fun to talk about, but is too limiting. You’re right that Iwata/Miyamoto won’t behave in a predictable manner, but it’s crazy logic to assume that they will behave crazily. It doesn’t make sense to chase the “bleeding edge” of technology (that might be where Red Ocean comes from), as Microsoft did (kind of) and Sony did (definitely), but once the technology is affordable and merely “leading edge”, why wouldn’t Nintendo choose it?

Who says the Wii wasn’t cutting edge in technology? The small size and efficiency of the console (within that price range) along with the new motion controls were cutting edge back in the time they were made. Something like Motion Plus wouldn’t be affordable back in 2006, but it is now in 2009.

Why is Pachter assuming that cutting edge technology must mean faster processors and graphical displays? It can mean other things such as the controller.

’Red Ocean’ doesn’t mean ‘bleeding edge technology’. It means putting features on your product that the competitors are doing. Instead of upgrading the graphics, Nintendo chose to upgrade the interface.

I haven’t done a good job illustrating the Blue Ocean Strategy (like I did with disruption) but here are some examples so Pachter will stop saying it is ‘simple’.

Blue Ocean Strategy is all about value innovation. Here are some charts and examples of the Blue Ocean Strategy in action which is far more complex than just saying ‘red ocean’ and ‘blue ocean’:

In early 2007, I played around with the Blue Ocean Strategy.

I probably should revisit it and attempt to do a more accurate assessment. But you get the general idea. I did little breakdowns for all the video game generations, but this one from the NES matched the Wii. These images came from my Drowning in the Blue Ocean article.

Are these images the epitome of accuracy of value assessment? Likely not. However, it was a try back in early 2007.

I wonder if Pachter realizes that he just dissed the most influential business book of the last decade. Oh well, Pachter is much more entertaining in his current mindset. His analysis is wondering whether an imaginary Wii HD will stop the imaginary PS3 comeback. But the real question you GAFfers need to ask Pachter is where does that Apple video game console play into this (which Pachter confirmed in the last Bonus Round)? Will the Apple video game console stop the Wii HD? Will it help the PlayStation 3 comeback!? I hope Pachter shares his thoughts on this…

(*giggle*)