What is the main message of Console Wars?

The main message of Console Wars is the battle for dominance between Sega and Nintendo during the 1990s gaming era.

Who is the author of Console Wars?

Blake J. Harris is the author of Console Wars.

Management & Leadership

Console Wars Book Summary - Console Wars Book explained in key points

Console Wars summary

Name: Console Wars
Rating: 4.2 (12 reviews)
Author: Blake J. Harris

Blake J. Harris

Sega, Nintendo and the Battle that Defined a Generation

4.2 (12 ratings)

15 mins

Brief summary

'Console Wars' by Blake J. Harris is a non-fiction book that explores the rivalry between Nintendo and Sega during the 1990s video game boom. The book follows the key players behind the scenes and reveals the marketing strategies and creative tactics that shaped the industry.

Topics

Strategy

Table of Contents

Console Wars
Summary of 8 key ideas

Audio & text in the Blinkist app

Key idea 1 of 8

What’s in it for me? Learn how a corporate rivalry launched the modern video games industry.

Gamers today have it easy. If you want to play a video game, your choices are many, and often overwhelming – first-person shooter or fantasy exploration, dedicated console or PC or handheld.

Just 20 years ago, however, things were very different.

In the 1990s, if you played games, you played a Nintendo game. In the United States, this company dominated the market and carefully controlled which games could be played on its consoles.

That is, until Sega and its rambunctious blue hedgehog wreaked havoc in the gaming industry.

These blinks tell the captivating story of how Sega and Nintendo battled for control of the video games market. With a flair for shock marketing, blood-splattered games and frisky gaming characters, Sega turned the industry on its head and set it on the modern path we know today.

In the following blinks, you’ll also discover:

why gamers prefer their characters to bleed red and not gray;
how Sega blundered and helped create the Sony Playstation; and
how a blue hedgehog with an attitude tripped up a polite Italian with a mustache.

Nintendo's rapacious strategies earned it market dominance in the U.S., but also left it vulnerable.

If you owned a game console in 1990, there's a good chance it was made by Nintendo.

Nintendo, a Japanese consumer electronics company, completely dominated the market for video games. In the United States at the time, the company claimed some 90 percent market share!

This dominance stemmed largely from Nintendo's strict control over who could create games for its console. If a company was interested in developing a game for Nintendo, it would have to purchase a game cartridge at a fixed cost of $10 – which meant games always sold for more than $10, regardless whether it was a hit or a flop.

This policy ensured that Nintendo would collect huge profits on highly successful games such as Street Fighter II, developed by Capcom; it also allowed Nintendo to closely control which companies produced games for its consoles.

Nintendo obviously was protective of its market clout. When a group of developers tried to create games for the console without Nintendo's approval, the company sued them. For many developers, the threat of losing favor with Nintendo (which could result in being ostracized from the market entirely) kept them loyal and obedient to the company’s dictates.

However, being a market leader has its downsides. Nintendo had to continuously push new products and take large risks to maintain its position in the market.

Yet many of the products Nintendo pushed out were of poor quality, and in the rush to release new products, it made many mistakes. For example, the company’s updated 16-bit console, released in the United States in 1991, was not compatible with games from its previous console. This angered many console owners, who were forced to buy their favorite games a second time.

These sorts of mistakes, combined with the ire of games manufacturers that Nintendo had effectively shut out of the market, created an opening for a new competitor. That company was Sega, and it arrived ready to take advantage of Nintendo's weaknesses.

Sega strove to position itself as the punk rebel to Nintendo’s boring parent, with great success.

The epic battle of David and Goliath, while an often overused metaphor, is apt in the case of Sega versus Nintendo.

When Sega made its entrance into the video game market, no one expected that the company could take on the dominant Nintendo – and yet it did. But how did the company do it?

Sega pulled out the marketing stops to get people excited about Sonic, and ignore Nintendo.

Coke versus Pepsi. McDonalds versus Burger King. Apple versus Microsoft. Many of the top corporate players market themselves deliberately against their main competitors.

Sega employed comparison marketing to gain an edge over Nintendo, as we’ve seen with regards to the company’s image. But Sega didn't stop there. Its sales strategy too sought to capitalize on the differences between the two companies.

An uncanny sense of timing and a well-oiled corporate machine: Sega’s success had a broad foundation.

Even the most creative, unconventional companies still need structure and talented employees to function. Sega's success in America began when Sega in America (SOA) got a new head, Tom Kalinske.

Kalinske had previously worked at Mattel, where he'd helped create the powerful, muscular character He-Man, as well as helped to resurrect the popularity of Barbie.

Going big on hardware instead of gaming software confused customers and cost Sega its crown.

There are two main paths for gaming companies like Nintendo or Sega, in terms of growth. You could create new software by developing games, or create new hardware by developing consoles.

Making such a strategic decision is tricky. You have to consider what strategy will require more time and effort, and what choice is likely to bring in more sales.

The success of Sega in America began to dim when its Japanese parent company meddled too much.

We tend to think of companies as one big entity. There’s one General Motors (GM), one General Electric (GE), one Nintendo and one Sega. However, company structures are far more complex.

Sega of Japan (SOJ) was the “original” Sega, based in Japan. The subsidiary, Sega of America (SOA), was based in the United States and managed by Tom Kalinske. Interestingly, SOA was the much more successful of the two companies.

Sega had its hands tied by its parent company’s refusal to partner; its eclipse was almost complete.

In a fast-paced, creative market like the video games market, it's not unusual for different companies to work together, especially when they have compatible skills.

Unfortunately for Sega, this was not the philosophy of its parent company.

Sega revolutionized the gaming industry, setting new norms for tech, marketing and game play.

When Tom Kalinske took the reins at Sega, it seemed like the company had little chance of survival. Not only did Nintendo dominate the games market, but the market itself was young and its future uncertain.

Over the next few years, however, Sega didn't just become successful – the company revolutionized the video games industry. Its aggressive marketing philosophy changed forever how games would be developed, released and consumed.

Want to see all full key ideas from Console Wars?

Key ideas in Console Wars

More knowledge in less time

Read or listen

Get the key ideas from nonfiction bestsellers in minutes, not hours.

Find your next read

Get book lists curated by experts and personalized recommendations.

Shortcasts ^New

We’ve teamed up with podcast creators to bring you key insights from podcasts.

What is Console Wars about?

Console Wars chronicles the epic, industry-shaping rivalry between video game developers Sega and Nintendo in the early 1990s. In five short years, Sega went from being a widely mocked underdog to U.S. market leader in console games, a dominance that essentially dictated the future path of gaming.

Console Wars Review

Console Wars (2014) by Blake J. Harris is an enthralling account of the fierce competition between video game giants, Sega and Nintendo, during the 1990s. Here's why this book is worth reading:

It offers a behind-the-scenes look at the intense battles and business strategies that shaped the gaming industry, providing valuable insights for both enthusiasts and professionals.
With its detailed storytelling and in-depth interviews with key figures, Console Wars brings to life the captivating personalities and power struggles that drove the industry forward.
The book's exploration of pop culture and nostalgia creates a nostalgic experience for readers, making it a captivating read that is far from boring.

Best quote from Console Wars

Video games werent just for kids; they were for anyone who wanted to feel like a kid.

—Blake J. Harris

Who should read Console Wars?

Anyone who likes to play video games
Anyone who remembers Sonic the Hedgehog and Super Mario Bros
Anyone interested in the evolution of the video game business

About the Author

Blake J. Harris is a writer and filmmaker who is also co-directing a documentary based on Console Wars. Harris is also the executive producer of a Sony feature-film adaptation of the book.

Categories with Console Wars

Management & Leadership

Book summaries like Console Wars

Adaptive Markets

Andrew W. Lo

Financial Evolution at the Speed of Thought

20 min

4.1

The Upside of Your Dark Side

Todd Kashdan and Robert Biswas-Diener

Why Being Your Whole Self – Not Just Your “Good” Self – Drives Success and Fulfillment

An Essential Guide to Life

21 min

4.2

Millennial Money Makeover

Conor Richardson

Escape Debt, Save for Your Future, and Live the Rich Life Now

Why English Won’t – and Can’t – Sit Still (Like, Literally)

The Architecture of Belief

The Comprehensive Guide to Delay, Don't Deny® Intermittent Fasting

17 min

4.5

Buddhism – Plain and Simple

Steve Hagen

The Practice of Being Aware, Right Now, Every Day

The Rise and Fall of Long-Term Capital Management

19 min

4.2

Workstyle

Lizzie Penny and Alex Hirst

A revolution for wellbeing, productivity and society

Testing Business Ideas

David J. Bland and Alexander Osterwalder

A Field Guide for Rapid Experimentation

The Keys to Success and Long-Term Fulfillment

17 min

4.5

Walmart

Natalie Berg and Bryan Roberts

Key Insights and Practical Lessons from the World's Largest Retailer

17 min

4.5

The Self-Made Billionaire Effect

John Sviokla and Mitch Cohen

How Extreme Producers Create Massive Value

14 min

4.1

Creativity, Inc.

Ed Catmull with Amy Wallace

Overcoming the Unseen Forces That Stand in the Way of True Inspiration

19 min

4.3

Mastering Leadership

Robert J. Anderson and William A. Adams

An Integrated Framework for Breakthrough Performance and Extraordinary Business Results

Obsession, Fury and the Scandal Behind the World's Favorite Board Game

The Remarkable Truth of How a Small Change Can Help You Stress Less and Enjoy Life More

Marketing That Can't Be Ignored!

Austrian Investing in a Distorted World

18 min

4.3

Bedtime Biography: Vindication

Lyndall Gordon

A Life of Mary Wollstonecraft

30 min

4.7

How to Fail at Almost Everything and Still Win Big

Scott Adams

Kind of the Story of My Life

How to Bridge the Distance Between Business Strategy and Design

15 min

4.4

Only the Paranoid Survive

Andrew S. Grove

Transform apocalypse into opportunity

The “How To” book that gives YOU a “Check Up” from the “Neck Up” to eliminate “Stinkin Thinkin” and AVOID “Hardening of the Attitudes”

A History from Socrates to Social Media

Vengeance and Justice in Mycenae

Grit, Curiosity, and the Hidden Power of Character

How to free yourself from philosophical dogmas and assert your own values

25 min

4.7

The First Rule of Mastery

Michael Gervais

Stop Worrying about What People Think of You

The Life of Gordon Moore, Silicon Valley’s Quiet Revolutionary

The Creative’s Guide to Building a Business with Impact

The 15 Most Powerful Principles for Wealth, Health, and Happiness

How to Control Your Attention and Choose Your Life

23 min

4.4

The 15 Commitments of Conscious Leadership

Jim Dethmer

A New Paradigm for Sustainable Success

The Story of Ideas That Fly

How the Psychology of Sports Can Enhance your Performance in Management and Work

19 min

4.1

Yoga Nidra Made Easy

Uma Dinsmore-Tuli & Nirlipta Tuli

Deep Relaxation Practices to Improve Sleep, Relieve Stress and Boost Energy and Creativity

A Very Short Introduction

25 min

4.2

Why Zebras Don't Get Ulcers

Robert M. Sapolsky

The Acclaimed Guide to Stress, Stress-Related Diseases, and Coping

25 min

4.4

Understanding and Responding to Self-Harm

Allan House

The One-Stop Guide: Practical Advice for Anybody Affected by Self-Harm

18 min

4.2

Brave Together

Chris Deaver & Ian Clawson

Lead by Design, Spark Creativity, and Shape the Future with the Power of Co-Creation

20 min

3.9

Go Beyond Talk: Connect Powerfully

The Blinkist Team

How learning to listen and be assertive can help your communication

17 min

4.6

The Science of Intelligent Achievement

Isaiah Hankel

How Smart People Focus, Create and Grow Their Way to Success

23 min

4.4

Start, Stay, or Leave

Trey Gowdy

The Art of Decision Making

How Millennials Became the Burnout Generation

19 min

4.3

How I Invest My Money

Edited by Joshua Brown and Brian Portnoy

Finance Experts Reveal How They Save, Spend, and Invest

20 min

4.0

What I Learned Losing a Million Dollars

Jim Paul

The story of a man who lost it all

17 min

4.3

People ❤️ Blinkist

Sven O.

It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

Thi Viet Quynh N.

Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

Jonathan A.

Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

Renee D.

Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.