Nex Playground Exploits Industry Blind Spot with Smart Play

The gaming industry is grappling with an affordability crisis, with high hardware prices hindering audience growth and low software prices making it difficult for games to turn a profit. However, this crisis also presents opportunities for agile companies to capitalize on untapped markets. The Nex Playground, a gesture-controlled console with a camera, has achieved surprising success by targeting families with young children. Priced under $200, it offers a range of games, including licensed properties, for a monthly subscription of less than $10. By focusing on this niche market, Nex Playground has inherited the audience of earlier devices like Microsoft's Kinect and Sony's EyeToy, which were once popular among families. The major platform holders' decision to abandon low-cost market segments has created a void that Nex Playground has filled. The industry's emphasis on high-end hardware has led to the decline of genres like dancing games, singing games, and mini-game collections, which were once thriving on consoles. However, the demand for these types of entertainment experiences remains, and Nex Playground has successfully exploited this demand. The company's strategy of using low-end hardware and investing in good development teams has paid off, and its strong word-of-mouth among parents suggests a bright future. The Nex Playground's success demonstrates that there are still opportunities for companies to innovate and thrive in the gaming industry, even in the face of an affordability crisis. By identifying and targeting neglected audience segments, companies can create new markets and achieve success.