Fils-Aime sounds off on digital divide

May 9th, 2007, 23:14 Posted By: wraggster

via gamespot

Nintendo of America president Reggie Fils-Aime is concerned about the technical divide between the haves and have-nots. In an editorial posted today on News.com, Fils-Aime praised the efforts of people looking to bridge the gap between those who can afford new technology and those who can't, and he explained his company's efforts to reduce the similar gap between those who understand new technology and those who don't.

"I wonder if a similar technical divide exists inside your own home," Fils-Aime wrote. "One person is probably expected to provide solutions when it's time to install the wireless network, redirect the satellite dish, or retrieve a lost document. The have-nots sit and wait."

Fils-Aime said a similar gap surfaced in the world of gaming several years ago, with the same qualities drawing in one valuable segment of the consumer base while alienating another.

"While ardent players reliably responded to ever-advancing technology and complexity, those same attributes consistently chipped off potential new players from the total market, narrowing the consumers into a smaller niche," according to Fils-Aime.

Nintendo's solution to the problem was partly to innovate, Fils-Aime said, following a Harvard professor's idea that introducing a new product that can't compete on a market's established terms for progress leaves room to make something smaller, cheaper, and easier to use.

"Initially, the 'core' of any industry will scoff," Fils-Aime said. "But if the product is right, enough new users will be attracted to form an alternative definition for progress."

The second aspect of Nintendo's solution to its problems was to find a new market. Fils-Aime cited a McKinsey Institute study that described "white spaces," which are unaddressed markets that fall between established product categories.

"They 'fuse consumer benefits' by combining 'brands, technological breakthroughs or insights' in new ways," Fils-Aime explained. "A decidedly non-technical example is the repurposing of traditional breakfast cereal into the 'breakfast bar.' The result? A new, highly profitable category--'on-the-go nutrition.'"

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