Revolutionizing markets, the fun way
Few markets are as boring as the one for bathroom scales. There’s nothing sexy about a product that tells consumers how overweight they are. No advertisement will inspire consumers to rush to the store, just to buy the latest in weight-measuring technology. No technological advancement, short of a magical fat reduction system, would inspire most consumers to upgrade their existing scale. This all seemed perfectly obvious until recently, when Nintendo began selling a glorified bathroom scale to millions of consumers – a scale that is in such demand that it typically sells for $150 or more. That product and its associated video game, Wii Fit, has become the latest popular example of how video games are revolutionizing large, mature markets.
Wii Fit transforms the act of measuring your weight (and balance) from an often-depressing ritual into a lighthearted series of games. Players are encouraged to sway their hips while catching virtual hula hoops, to “walk” across virtual tightropes, and to ski down virtual slopes, among many other clever activities. Wii Fit leverages the key principles of game design – for example, goal setting, frequent (but appropriate) positive reinforcement, and escalating difficulty that stays in step with a player’s improving skills – to turn what could be a frustrating experience into an enjoyable and inspiring experience.
Wii Fit is not Nintendo’s first successful attempt at revolutionizing a “boring” market. Its Brain Age games have turned simple math drills – the kind kids typically despise – into a product category that has generated hundreds of millions of dollars in revenue while simultaneously thrilling school administrators and attracting senior citizens to the console video game market. And while Nintendo is one of the most visible companies using games to revolutionize markets, it is far from the only one.
Take, for example, the never-ending battle between McDonald’s and Burger King. These multinational titans have typically attacked the market in a very traditional way – with expensive television advertisements and short-term promotions. But in 2006, Burger King changed the rules of the game. Recognizing the increasing popularity of the Xbox video game platform, it chose to release three original Xbox games designed to promote the Burger King brand. Over 3.2 million copies of these games were sold in Burger King restaurants for $3.99 each, which resulted in one of the most effective promotions in the history of the franchise and caused a 40% increase in Burger King’s quarterly profit. And many consumers continued to play the games long after the promotion ended, which effectively meant free long-term advertising for Burger King.
Of course, the executives at McDonald’s have taken notice of Burger King’s success, and have escalated the war for the hearts and minds of the gaming public by launching a virtual world centered around the McDonald’s brand. (Or as their website notes, “The happy meal has gone digital!”) Children are encouraged to become citizens of this world, which contains a variety of gameplay experiences, and their sense of belonging is enhanced through customization features like the creation of their own “avatar” and the acquisition of virtual items. In fact, McDonald’s put the very name of its virtual world up to a vote of its citizens – a nice example of the great extent to which companies are now inviting customers to become involved in their brand through interactive experiences.
Video games are not being leveraged in consumer markets alone. Organizations of all sizes are using games to train and recruit employees, to improve productivity, and to spur innovation in many ways – as well as to jazz up consumer products and to advertise. For more examples, check out the online annotation of our book.