What happens when a startup rewrites the rules of product design, pricing, and retail? It wins the holidays. This season, Nex Playground did something few thought possible – it outsold Microsoft’s Xbox during Black Friday week. Not by chasing hardcore gamers, but by building a product for people who don’t even think of themselves as gamers. That is, parents and kids. The strategic choice Nex made touches three core marketing decisions every company faces: what to build, how to price it, and where to sell it.
Start with product development. Nex didn’t ask, “How do we make a better console?” Instead, it asked, “What problem are parents trying to solve?” The answer wasn’t graphics or frame rates, but rather screen-time guilt. By designing a motion-based system that gets kids moving, Nex positioned its product as part toy, part activity, part peace-of-mind purchase. Licensing games like Bluey only strengthened that family-first positioning.
Next comes pricing. At $249 and on sale for $199 during Black Friday, Nex Playground’s pricing landed far below traditional consoles. That $50 holiday discount wasn’t just a deal, it was a trigger. While Xbox held firm on price, Nex leaned into value perception at the exact moment parents were comparison shopping. Same category, very different pricing logic.
Finally, retail strategy sealed the deal. Instead of relying on specialty gaming stores, Nex went where parents already shop and were looking for value: Walmart, Target, Best Buy, and Amazon. Being visible in the toy aisle and topping Amazon’s charts reframed the product from gaming console to must-have gift.
The bigger lesson? Market leaders don’t always win because of better technology. Sometimes they win because they’re solving the right problem for the right customer.
Discussion Questions and Activities
- How did Nex redefine its competitive set compared to Xbox and PlayStation?
- Was the Black Friday price cut a short-term tactic or a long-term brand risk?
- How did product design influence where Nex could sell the Playground?
- Could this strategy work outside the kids/family market?
- What happens to demand when the holiday discounts disappear?
- Product Repositioning. Redesign an existing console for a non-gamer audience.
- Pricing Scenario Create three pricing strategies for Nex post-holidays.
- Channel Strategy. Decide which retail channels best fit different types of products and why.
- Perceptual Mapping. Create a perceptual map showing product positioning of different gaming consoles and brands.
Sources: Cohen, Ben (12 Dec 2025), The Hottest Toy of the Year Is Made by a Tech Startup You’ve Never Heard Of, Wall Street Journal; The Tech Buzz, (13 Dec 2025) Nex Playground’s Holiday Surge Leaves Xbox in the Dust, The Tech Buzz.
