What MySpace can learn from Nintendo

Posted by Craig Johnson on July 15, 2009 Share

In this race for ownership of the online social network platform, it seems fairly apparent that Facebook is doing nothing but taking over.   In February 2007, MySpace owned 80% of the market share for social networking websites.  Last December, Facebook passed MySpace in unique visitors and continues to be on the rise.  Not surprising because I can't remember the last time I (or anyone I know for that matter) logged into my MySpace page. Then to top it all off, last month MySpace announced that they had to layoff 30% of their staff.

I can't help but think about a similar fight in the gaming world.

In December 1987, Nintendo owned 70% of the US market share for home video game systems.  Slowly and inevitably, others came into the market space.  Sega first, then Sony, and eventually Microsoft with the X-Box.  By the time the Sony Playstation 2 launched in 2000 and the X-Box in 2001 Nintendo was all but left in the dust.  They had been outdone.  I figured Nintendo would be left as nothing but a great memory of my childhood.

But Nintendo followed one of the core philosophies of branding: DIFFERENTIATION.  They couldn't keep trying to be better than the other guys.  They had to change the game.  They had to be different.  Instead of saying, "Hey everyone, we're better than PlayStation and X-Box", they knew they had to change the conversation to "Oh, yeah, Playstation and X-Box are great, but we're not like them at all."

The result was the Wii.  I don't have to talk about the Wii and how great it is and how it totally changed the game.  The Wii is now the best selling home gaming system, and most people that have either a PlayStation or X-Box also have a Wii.  Incredible.

Very important to remember is Nintendo's intentionality was not to be better, but to be different.

So back to MySpace, I have no clue what the talk is around their office these days, but I hope it's not trying to figure out how to be better than Facebook.  They've already lost that battle.  But there is still a chance for them if they can figure out how to be different.

What do you think?  Can MySpace continue to compete with Facebook without differentiating?


Back to Blog

8 Comments

"I know it's lame to be the first one to comment on your own blog, but an additional thought hit me this morning and I almost added it into the blog, but it just didn't seem to fit there.

But when I think about someone differentiating in the social networking space, the one really doing that is Twitter. Twitter is not in competition with anyone else, it's in a category by itself and it actually is an amazing complement to Facebook. Actually, Twitter keeps me more involved on Facebook because my Twitter feed moves into my Facebook status. Brilliant. Twitter even makes Facebook better.

Differentiation is an amazing thing when done right."

- Craig Johnson

"Looking at MySpace, it appears to me that they are trying to raise income by selling more and more advertisements. They don't seem to have control of their own site (or brand) anymore. They have allowed annoying pop up ads and other crazy animated, blinking, and obnoxious ads that get in the way of whatever desirable content that is left. They have made lame attempts to emulate some of face books features, and they fall flat. It is like they have conceded defeat and they told their marketing department that their ship is sinking and they need to raise as much cash as they can before they crash to the bottom of the social networking ocean. MySpace still has a lot of users. It seems that a complete and total overhaul of the site, a rebirth of their image, could still make some waves in the industry, but unfortunately (for them) they seem to have simply given up."

- Eric Bachman

"Interesting remarks…
I think MySpace already lost the current ground to Facebook and Twitter and any moves trying to imitate any of them will be doomed to failure since they are both well positioned in the market at the moment. I agree with you that they need differentiation and I would add ‘based on innovation’; just as Nintendo did …
More to that, any strategic alliance, merger, or even acquisition are all available options. But with whom and how are certainly tough questions to answer …
Thanks,
Saad (@smaldosari)"

- Saad Al Dosari

"Great point Saad. Innovation is critical in addition to differentiation. Differentiation alone will never accomplish what they need, but they also can't survive without that differentiation. Also like your thoughts on a strategic alliance - much like what Twitter did with Facebook."

- Craig Johnson

"The only reason I go to myspace anymore is if I find a new band I'm interested in and I want to listen to their music.

Other than that, I've deleted my personal MySpace account, and our company pretty much abandoned our cruise MySpace pages.

We just didn't see any value in it.

Something drastic needs to be done; I wonder if they have the guts to do it?"

- Steve

"Three things: you need to be different, do the opposite and you need to focus.

While X-Box and Playstation were busy adding function upon function like Blu-Ray DVD players, Nintendo did the opposite. A simple game system, that totally different and totally focused on the the remote.

Twitter is focused just on short messages. While Facebook does it all, Twitter does just one simple thing.

What is MySpace? Well, as was said the only thing they have credibility in is music. I would focus on that. Hopefully it is not too late."

- Laura Ries

"hey guys...just wanted to let you know i really enjoy reading your blog. its fantastic and really appreciate your thoughts...keep up the great work...peace...mike."

- mike foster

"I agree with Laura, MySpace needs to focus their differentiation on music. They need to come out with a full suite of online social media tools that enable, empower, and even inspire indie music labels and artists to get their music out there. When you think of independent music production and distribution, MySpace should come to mind. And they for sure need to update their design and get rid of all that blinky-blinky."

- Ron Dawson

Leave A Comment