How Sony, Samsung and Merck cope with the R&D dilemma: Blockbuster challenges faced by new product developers

New product development, particularly the search for real blockbusters, is of crucial importance for any organization. But when a product quickly becomes a smash hit, the next best‐seller must be found – and then the pressure really starts. Creating a totally new market can reap financial rewards beyond the wildest imagination. Sony, for example, is currently developing the third generation of AIBO, billed as the world’s first “entertainment” robot. A runaway success in Japan after its sell‐out launch in 2001, the product has already created as much interest in the company’s other two blockbusters: the original Walkman and the PlayStation game console, both of which went on to transform their respective markets.