Home Video Game Industry Analysis Essay

Words: 858
Pages: 4

Subject: The Home Video Game Industry: Industry Analysis


In 1949 the video game was thought of for the first time by an engineer named Ralph Baer but it would be years before video games would enter the spotlight.1 In 1972 Steve Bushnell started the first gaming company Atari. Until 1978 there were very few games for the home system. In 1982 Atari releases a newer version and sales start to sore. In 1985 Nintendo enters the market with the NES. Nintendo still outsells both companies 10 to 1.

In 1995 Sega releases Sega Saturn three months before the projected date and there are not enough games released because of this and sales are dismal. The same year Sony releases the Playstation at $100 less than expected with a
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Structure and Control Systems

Strategic managers in the Video Game industry have developed a set of strategies to build competitive advantage to achieve their goals. Then an organizational structure has been put in place to use resources to create a competitive advantage. To evaluate how well the strategy and structure are working, managers developed specific performance measures. The four building blocks of competitive advantage are efficiency, quality, innovation, and responsiveness to customers.


With the home video game industry evolving, there are a few things that need to be in mind as you try to improve. You need to stay technologically advanced by continuing to change games, software, and new models. These adjustments require this technology to be low cost to be successful in this industry. If costs are high, not only will the customer be lost but you may lose your competitive edge. Competitive advantage in this industry is a critical factor. If you are ahead in the industry at one point, another company can come out with the next best selling product with new features and graphics capturing market share.

Furthermore, being competitive in the sense of efficiency, quality, and response to the customers is critical in this industry. It influences a customer to buy your product rather than the competitors. If you have good quality