The early ‘90s marked the boom years of the home video game console market. As brands like Nintendo and Sega battled for supremacy, many companies tried staking their own claim in the rapid growth of this sector. Among them was the electronics giant Philips, with their ambitious “jack-of-all-trades” console called the CD-i.
This machine was birthed from an era of excited possibilities as CD-ROM technology allowed consoles to be so much more than just gaming devices. But as we’ll explore here, the CD-i became a legendary flop – the butt of jokes for retro gamers to this day.
So what exactly happened? As an industry analyst who lived through those times, I’ve identified 7 key failures that led to this console’s crash-and-burn demise just 7 years after its launch:
Skyrocketing Costs That Left CD-i DOA
First and foremost, the single biggest barrier for this console’s mainstream success was its terrifying price tag.
| Console | Launch Year | Launch Price |
|---|---|---|
| Philips CD-i | 1991 | $699 |
| Sega Genesis | 1989 | $190 |
| Super Nintendo | 1991 | $199 |
As we can clearly see, the CD-i retailed at over four times the cost of its strongest competitors when it arrived in stores in late 1991.
To put this into perspective – a single CD-i would cost the equivalent of buying BOTH the leading Sega and Nintendo consoles with money left over! Understandably, not many households were keen on splashing out for this unfamiliar new machine.
Philips would go on to slash prices over the 7 years after launch. But by the time it reached a somewhat more palatable $400 price tag in 1993, it was too little too late to overturn dismal sales.
Pricing and Profitability Issues
- Launched at over 4 times the price of competition
- price drop to $400 after 2 years still well above competitors
- stayed a niche luxury item rather than mass market viability
As this breakdown shows, pricing was completely out-of-touch for mainstream success. It relegated the CD-i to a niche luxury status rather than a must-have household item from the very beginning.
Identity Crisis – Jack of All Trades, Master of None
The CD-i was touted as the ultimate all-in-one multimedia machine for the modern living room. Able to play console-style video games, music CDs, educational titles, and video CD discs with digital footage.
On paper, it was the device that could do it all – gaming, edutainment, video playback and beyond! But in practice, it lacked identity and failed to truly excel at any one function.
Console Identity Issues
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Tried being all devices, achieved none
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Media features lacking compared to competition
Despite these lofty aspirations of dominating home entertainment, the CD-i just couldn’t deliver a better experience than single-purpose consoles. Its video quality and screens paled against dedicated media players that could record and playback VHS tapes. And its disjointed games library was no match for the long-standing giants of gaming.
Identity and Functionality Shortcomings
- Fell short as either multimedia OR gaming device
- Video/media abilities lacking compared to VCRs
- Gaming library tiny fraction of Nintendo & Sega’s
This attempt to be the “Jack of all trades” left it totally outclassed as a master of none. And the result was consumer confusion over what exactly this device was good for.
Baffling Lack of Marketing Funds
Another mystifying misfire was…
