...Most teenagers can admit that playing a game when there is nothing to do is a great way to pass the time. While cards, board games, and some recreational activities still attract the attention of the older generation, the new modern generation is more likely to prefer game apps on smartphones or even the video game world, most respectively the home consoles. With the big tech giants Microsoft, Sony, and Nintendo out with their latest piece of hardware out in the market, there are some similarities and differences that each platform can provide to the gamer such as in features, games, and online experience. Physical and virtual features are a key factor in helping attract the attention of their respective fan base; however, each company applies different features to their respective consoles. In similarities, all three consoles have access to at least 2 USB ports and the ability to connect to the web Wi-Fi. Each platform also has a similar hardware content right out of the box: a main system, a handheld controller, and an HDMI port and cable to connect to the TV. All three devices also support 720p and 1080p resolution for an amazing graphical experience (IGN). There are some features that only two consoles may share or is exclusively on just one. Both Nintendo’s Wii U and Sony’s PS4 integrate Bluetooth connectivity between the main system and the handheld controller while Microsoft’s Xbox One uses infrared or IR. Wii U and Xbox One owners can insert an external storage...
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...that may influence the outcome of marketing and sales. In terms of gaming industry, Microsoft, Sony, and Nintendo with their respective hardware’s MS Xbox 360, PS 3 and Nintendo Wii illustrate the first tier competitors in U.S. as well as globally. Microsoft Xbox 360 Strength: • Integration of next generation DVD players i.e. HD technology • Backward compatibility with previous Xbox games • Online product – the first of its kind • Lower price than most comparable competitor PS3 Weakness: • Expensive hardware and games • Production flows • Direct competition with Nintendo because of equally large customer base Opportunity • Penetration of new markets in ME • Penetration of untouched markets by means of bundling • Partnership with Hollywood studios Threat • Lower cost competitor i.e. Nintendo • Anti trust issues in Europe • Hardware complication Sony Play Station 3 Strength: • Integration of next generation DVD players • Backward compatibility with previous PS2 • Mostly Free Online product • Recent decline in profits Weakness: • Expensive hardware and games Opportunity • Great product lunch covering global spectrum. • Penetration of new markets in ME • Penetration of untouched markets by means of bundling • Partnership with Hollywood studios Threat • Lower cost competitor i.e. Nintendo • Delays in production • Constant strategy change Nintendo Wii Strength: • Uniqueness of hardware motion detection • Low cost hardware and software ...
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...1. How attractive is the video game console industry in 2008? In 2008 the video game industry is dominated by three major players and their respective gaming consoles. First of all there's Sony with its PlayStation 3 launched by the end of 2006. Then there's Microsoft with its Xbox 360, launched in the end of 2005; and finally Nintendo with the "Wii" in late 2006. These three players are struggling to gain market leadership in the game console industry. The video game industry, off from an uncertain start in 1972 has been marked by quick and frequent changes of fortune amongst the various players in the market. The market was characterized by rapid growth as well as unexpected down turns such as the one in 1983 where the industry lost 97% of annual sales volume in 3yrs. The industry appears to exhibit five to six year cycles of competition which concur with advancement of underlying technology. Nearly all-technological leaps from one generation to the next were marked by a change in leadership. Currently, the market is lead by Nintendo with 60% operating margin, compared to Sony's -9.7% and Microsoft's even worse -33.7%. In recent years, Nintendo has managed to overthrow both Sony and Microsoft despite having a console which is significantly less technologically advanced. There is a low risk of potential entrants due to high sunk costs (as demonstrated by Atari's "ET" flop), large capital requirements and very high economies of scale needed especially since product is sold...
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...Video Game Consoles Video Game Consoles Video Game Consoles Name | Varun Punjabi | Class | PGDM - Communications | Subject | Marketing Management | Roll No | 39 | Scope: The Indian video games sector in 2011 was driven by the urban middle class/upper-middle class population, who adopted both static and handheld games. Rising income levels, increased availability of international brands such as Sony PlayStation 3, Nintendo Wii and Microsoft Xbox 360 as well as growth in retail chains were primary factors driving the demand for video games in India. An industry worth 25 billion dollars globally, the 9th generation of video game consoles will see tremendous advances especially with the inclusion of virtual reality compatible hardware technology. ------------------------------------------------- ------------------------------------------------- Video Game Consoles: Interesting Trivia ------------------------------------------------- ------------------------------------------------- - 2 out of 5 gamers are women ------------------------------------------------- - 65% of US households have atleast 1 video game console ------------------------------------------------- - The average age for gamers is 32 ------------------------------------------------- - An average gamer spends 18 hours playing video games. ------------------------------------------------- - Sony Playstation 2 sold 138 million units worldwide making it the best-selling console ever...
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...intensely competitive gaming industry, dominated by three large competitors, Microsoft, Sony and Nintendo. Apple’s has success with providing quality products and, has already established markets for Mac computers, notebooks, TV, iPad’s, iPhone’s and iPod’s. As Apple has a reputation being high quality, stylish and, luxurious brand, the new game console will be perceived to have the same qualities. Step 1 - Idea Generation With the new technology and changing consumer preferences the gaming industry is continuously evolving. With the right product catered to the market, differentiation can bring market share, profits and, growth. Using marketing research Apple needs to identify what is already in the market, the demand for them, how they could be improved and differentiated. Step 2: Screening Strength • Already established successful brand name • Loyal customers • Apple perceived as innovative, superior quality and, stylish products • Ability to generate higher profits due to premium price charged Weakness • Failure in the launch of the first gaming system • Inexperience in the video game industry • Short life span on game consoles Opportunities • Apple caters to the premium market which has less competition • Continuously expanding market. • Consumer demand for new innovative products Threats • Intense competition from already established competitors • Challenges caused by the continuously evolving market to regularly release new innovative products...
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...Apple game console: If Apple were to develop a new game console which may call”i game”, it would probably have to following process: New product development . Idea generation Apple can generate the new ideas from the company’s own sale or production staff, middlemen, competitors, consumer surveys, or other sources such as advertising agencies. .Screening The following is the SWOT analysis on the new game console: .Strength 1. Band awareness/Halo effect from the i series products 2. Product differentiation 3. Complete package of hardware and software .Weakness 1. Heavy investment in research 2. Not a lean operation management (Apple has to bear the cost of components and parts that the company purchased before hand) 3. Not completely independent. Apple is reliant on the third party for hardware parts such as processor chips. If these companies run short or increase the price on the chips, Apple must absorb the cost. 4. Apple is new for the video game industry Opportunities 1. Customers is like a new apple product 2. i series and itune combo the halo effect of the i series to maximum extent. Threat 1. Threat of the competitor products 2. Threat of game platform reliability 3. Threat of new games development costs The new apple console should be the new member of the i series to the various age level of customers. The new game console should comply with the market trend such as high quality picture. .Top management support Enthusiastic...
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...*CASE STUDY 11* Competition in Video Game Consoles: The State of the Battle for Supremacy AUTHORS: Christian Kostadinov 29114042 Ivaylo Baldev 29114047 Sofia 2010 Competition in Video Game Consoles: The State of the Battle for Supremacy Objectives in front of the case study The main objective that stands in front of our project is to clarify the present situation on the market of video console games. To present the strategies of the three main rival firms-Sony, Nintendo and Microsoft, to see their advantages and disadvantages, to see what their mission statement is, to see who are their customers and in which market segments the companies are trying to penetrate or have already penetrated. At the end we are going to try to predict the future development of the battle. We are also going to compare them in the above mentioned spheres, with the help of a competitor analysis. Conclusions are going to be derived after every paragraph. In order to do that we are going to use different methods including- SWOT analyses, PEST analyses etc. There were two different variants how to structure the text- first to include the PEST and SWOT analysis in the text for every firm or second variant to add it after the analysis. The second way was chosen because we decided that using this method it will be easier to compare the firms. Additionally we are going to present the information in the most understandable way by a PowerPoint Presentation. Content: 1. Introduction...
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...gamer can tell you, video games are apparently on the rise of popularity while every other medium of entertainment and leisure including music, movies, television, books, magazines and newspapers are on the decline. This was given in a speech by Activisions Mike Griffith at the 2009 consumer’s electronic show. Here the question arises, is this true? Are consoles more popular than computer games nowadays? The battle has long waged between different gamer types which is better, console or PC?but we can all keep trying. Console gaming appears to be on the rise according to a new report from market research firm Nielsen. The data came from Nielsen’s sample of 12,000 television using households in the US, which found that although the number of “television households” has only risen by 1.6%,the number of game consoles in those households has risen by 18.5% in the same period of time. Moreover by the end of 2006 there were 45 million homes with the console and 148 million people had access to at least one system. The use of connected consoles-consoles that connect to the internet has grown steadily over the years to 4 million even before the introduction of PlayStation 3 and Wii in late 2006.Systems such as PlayStation 2, XBOX and XBOX 360 appear to have made connected consoles commonplace in the home and online gaming services are becoming more popular than ever, as evidenced by the success of Microsoft’s Xbox live service. In addition to this, consoles come with great benefits...
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...current top selling console in worldwide but lose to the Ps3 in have the better gaming console dose one truly know why? If one has ever own an Xbox 360 or Ps3 one would have notice that they are both good video game systems. They are different and only one can be the top selling but does that mean it need to be the more superior gaming console. Even though the Ps3 is the better gaming console on the market, the Xbox 360 is the current top selling console in the American market only because it is cheaper They are many reasons the Ps3 is the better gaming console over the Xbox 360 on the worldwide market right now. The main reason for it been superior over the Xbox 360 is because the date it was release to the worldwide market. It was the lasts gaming console to come out of the current gen gaming console. The Ps3 was release a year after the Xbox 360 which gave it more time to add new upgrade to their system to make sure it was the better gaming console. The ps3 was release on November 17, 2006 in the American market with this it gives them more time with the development of the games console to make change to it. The Ps3 also became one of the top gaming consoles on the worldwide market when it was release with a Blu-ray player built in it so it gave its customer the ability to watch full HD contention on their TVs. Were the Xbox 360 came with a dvd player built in. With the Blu-ray player built in it is system it gave them the edge over the other gaming console currently in the...
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...reasons of success 8 Swott : 8 Operational Segmentation 9 Why marketing communication campaign was a success? teddy 10 V. CONCLUSION: Recommendations for Sony and PSP 10 Introduction: A portable console is a video game console designed for ease of transportation. It differs from the old « classic » console in its compact design, bundling the screen, control buttons and the speakers. During the 1970s and 1980s, several companies such as Coleco and Milton Bradley offered a combination of portable and non-portable (requiring a support to be raised) electronic games. The original portable models were limited to a single game built into the machine itself and thus not meeting the multiple gaming capabilities of current portable machines. Milton Bradley Microvision introduced in 1979 is considered as the first real portable console with exchangeable video game cartridges. The Nintendo Company has dominated the handheld market since the release of its Game Boy in 1989. Nintendo is often seen as the company that made this console, popular. Unlike the PC market, the console manufacturers are not as numerous and diversified. By 2001, the global game consoles market had risen to more than 20 billion dollars. The story seems to have proven that the gaming console market can’t accommodate more than 3 major players simultaneously. Namely, Sony, Nintendo and Microsoft have driven the competition to Sega out of this overlay saturated market. What this last decade tends...
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...VIDEO GAMES CONSOLE The games console industry is divided into three periods. The first period is the growth of the industry to the advent of the 32 bit era. The next period is the developments and trends during the PlayStation era and the third is the likely development of the industry over the next few years BRIEF HISTORY OF THOSE PERIODS and THEIR REVENUES (The Evolution of the Game Console Industry) In 1994 , the first time that consumer electronics giant Sony had bravely attempted to enter the highly competitive games console market. Going under the catchy, self–explanatory name PlayStation, this 32–bit, CD–based system hit Japan in December and faced tough competition from 'The Big Two' in the form of Sega's fundamentally similar Saturn, and Nintendo's upcoming Ultra 64. By May 1995, barely six months after the release of PlayStation, over 1 million Japanese gamers had become converts. Games like Toshinden, CyberSled, Jumping Flash!, and a host of other, decidedly more obscure titles (our favourite is Chou Aniki – Kyuukyoku Muteki Ginga Saikyo Otoko – literally 'Super Older Brother – The Galaxy's Absolutely Invincible Strongest Man') helped to propel sales, impressing players with their advanced 3D visuals and diverse gameplay. By October, worldwide PlayStation shipments had reached 9 million, and with the arrival of huge sequels such as Tekken 2, Ridge Racer Revolution and Wipeout 2097. In a year that saw cosmologists announce that the expansion...
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...in Kyoto, Japan and, decades later, expanded to video game production. Nintendo released its first game console, the Nintendo Entertainment System (NES), in 1985 (Nintendo, 2013). The NES became an instant hit and set Nintendo to be a pioneer in the game console industry throughout the 1990s. Gradual Decline Nintendo enjoyed tremendous success as it continuously released new consoles: Nintendo 64, Game Boy, Game Boy Advance, GameCube, and more. However, the company faced increasing competition in the early 2000s from Microsoft’s Xbox and Sony’s PlayStation consoles and its market share started to decline. In 2003, Nintendo’s share price fell sharply when Sony announced its PlayStation Portable (PSP), threatening the monopoly that Nintendo held on the portable console market (Kendall, 2009). Change in Strategy In an industry that competes based on delivering the latest technology, Nintendo’s newly promoted president, Satoru Iwata, took the company in a new strategic direction to restore the company’s former glory. Challenging the long-time video game market of boys, young men, and “serious gamers,” Nintendo decided to change their strategy and target those outside their traditional demographic: women, seniors, and families (MaRS, 2010). Rather than focus on the latest graphics processors, hardware design, or engine speed, Nintendo took a new “fun and social” approach to gaming and released the Wii console. This new gaming system was based on body motions and...
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...Five Forces Analysis of the Video Game Industry The five forces that drive industry competition, a model established by Michael Porter, are; threat of substitution, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and intensity of rivalry. The video game industry must deal with all five of these forces. The analysis of the strength of these five forces within the video game industry will help to draw a conclusion as to whether or not it is an attractive industry for Sony to be in. The threat of substitutes in the video game industry is relatively low. Most customers are looking for a console that they can play games on and there really isn’t much else to choose from. One could say that computer gaming, although still technically video games, is a potential substitute. Almost every household in America at least has one computer, so it is much easier for customers to just purchase games for their computer rather than buy a new console altogether. Computer gaming is not much of a threat to the video game industry because customers seek the different type of gaming experience that the consoles offer that a computer cannot, such as motion control for the Wii, and special controllers for the Xbox and the PlayStation 2. Clearly the threat of substitutes is not very large in the video game industry. The threat of new entrants in the video game industry is moderate. The three key players in the video game industry are Microsoft, Sony, and Nintendo...
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...The Challenge Of Maintaining Greatness in the Gaming Industry Strategic Management Professor : Yuri Mishina 12-12-2013 1 Table of Contents Executive Summary....................................................................................................................................... 3 Industry Analysis ........................................................................................................................................... 3 Threat of New Entrants ............................................................................................................................. 4 Power of Suppliers .................................................................................................................................... 4 Power of Buyers ........................................................................................................................................ 4 Substitutes ................................................................................................................................................ 5 Degree of Rivalry ....................................................................................................................................... 6 Firm Analysis ................................................................................................................................................. 7 Company Strategy ....................................................................................
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...as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda. In 1956, Hiroshi Yamauchi visited the US, and this is when he realized the limitations of the card business and hence moved on to different arenas of the gaming world. In 1963, Yamauchi renamed Nintendo Playing Card Company Limited to Nintendo Company, Limited. During 1963 and 1968, Nintendo set up a taxi company, a "love hotel" chain, a TV network, a food company and several other things. All these attempts at expanding and diversifying the business failed, except toy making, where they had relatively prior experience with from selling playing cards. In enormous debt, Nintendo was trying to withstand the Japanese toy industry; it was still small at this point. Due to the short product life cycle of toys, innovation and constantly new product development was vital. This was the beginning of a major new era for Nintendo. In 1970, Hiroshi Yamauchi discovered the hidden talents of Gunpei Yoki, a maintanace engineer at the factory, who built what was later called The Ultra Hand which soon turned into a huge success, selling approximately 1.2 million units. Yokoi was soon moved from maintenance to product development. Nintendo’s first step into the video games industry was in 1975. At the time, home video game consoles were very rare, even the seminal Atari Pong console had not yet been produced. The early 1980s Nintendo created some of its most famous and infamous...
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