The last blockbuster syndrome

Using Motorola, Nokia, and Nintendo as examples, Tero Kuittinen explains how dominant tech companies are lulled into “a comfy trip to the grave” by huge but ultimately short-lived successes before new paradigms take over.

For years, Nintendo has believed it could reject smartphone and tablet apps, yet still flourish. The reason for this delusion is familiar — it’s the toxic Last Blockbuster Syndrome that doomed the consumer electronics divisions of Motorola in 2004 and Nokia in 2007. Often at the start of a massive trend shift in consumer electronics, dominant dinosaurs get one massive hit built on a nearly obsolete paradigm, and that allows them to be lulled into a comfy trip to the grave.

The best example from the past few years is when Motorola, Nokia, and RIM were flying high with their phone products when the iPhone came along and changed the game.

• business
• Motorola
• Nintendo
• Nokia
• Tero Kuittinen