If you skip to around the 8:25 mark in this interview with Reggie, you’ll see a very interesting question….
http://blogs.wsj.com/digits/2011/06/17/video-nintendos-president-discusses-stock-drop-new-wiiu/
Yeah, I saw it when it came out. I forgot to post about it.
Interviewer knows Reggie has espoused Christensen’s ‘disruption’ strategy. So the interviewer lists some of Christensen’s elements of a disruptive product and asks Reggie to define the Wii U on them. Reggie fudges them all especially the ‘cheap price’.
A disruptive product is a crappy product for crappy customers. Wii fits this very well. Wii U does not.
Investors are seeing through Nintendo’s bullshit. This is why they are getting out.
A product does not have to be disruptive or even Blue Ocean to be successful. If Nintendo said, “We’re not doing those strategies this time,” that would have been acceptable. Instead, they are not doing the strategies while saying they are. This is making everyone think Nintendo is either completely incompetent (don’t know what the strategies are), or they are committing fraud. Either way, investors need to get out ASAP.