From the table it can be seen that there are five key issues which are in high urgency. In these 5 key strategic issues, two of them are short-term issues and the others are long-term. Sony and Microsoft are too much focus on niche markets which restrict them from increasing in other user groups. Sony and Microsoft should aim to increase their game diversification in order to attract more customers and to be more competitive. According to the customer survey in 2011, the results reveal the change in buyer market served in video game console industry which shows that the majority age group of console players is ranged from 12-30 and there are even 26% players aged of 55-64. However, hardcore gamer that mainly teenagers players are the primary targeted market of Sony and Microsoft while the target audiences of Nintendo are more causal with more women and older players. Therefore, the market segmentation could be a key strategic issue of Sony and Microsoft that need to be addressed in the short-term. The second strategic issue is lack of financial resources of Nintendo result in an insufficient investment in R&D department and less expertise game developers. Nintendo are not propitious by many industry observers for the reasons of less competitive financial and technology resources compared to Sony and Microsoft. Even it captured a big market share by the launch of Wii, the quality of graphics and speed of Nintendo video games are still underpowered. Moreover, it lacks of hardware development such as online game playing and DVD players which is also a big threat of the company because the strategies of its competitors Sony and Microsoft are based on the assumption that video game console are shifting to the multifunctional home entertainment with Internet connectivity and movie watch. The third key strategic issue is the over reliance on the US market which is approaching to the maturity stage. Once the market gets close to maturity stage, the growth opportunity of sales revenue and market share would be decreased gradually. As seen from the table, the console sales in US declined by 2.2% from 2011 to 2012. This means that companies need to explore new emerging markets in order to maintain the total revenue margin. Chinese video game market is now in the growth stage with a largely increasing in its sales revenue. This is partly because government suspends the ban on video game encouraging the growth of console market in China. The customers’ need varies in Chinese and American market thus the companies need to identify how to differentiate the product in order to satisfy the interests of different customers. The fourth key issue is the increasing competition of handheld game-playing devices and online free games. Nowadays, video game console industry is expected to face a fierce competition from de4many other game substitutions. This is because today choices of video game devices are much wider than the past as the big evaluation of game platforms such as the smart mobile and other portable devices. Video game has been largely shifting from home-based devices such as consoles and computers to handheld devices such as mobile phones. People now are more likely to download free games online compared to purchase video game consoles from retailers. Apple as the leader of music market with iPod and iTunes tend to extend its market share by entering the video game market. Apple has introduced iPad in 2010 which is positioned as a device used to play games. The last key strategic issue is the high digital piracy rate largely threads the video game consoles sales. Video game piracy and unlicensed video game consoles are a big threat of original video games sales. The data shows
First of all, in my opinion, the demand for a new video game system would be less at start, because customers don’t know about it yet or they are still waiting on comments given by customers who have played the game already. They need to decide if it’s work the money. Then the demand would increase meaning people are aware about the new video game system and are buying it and introducing it to others. After reaching its demand peak, the demand could decrease due to some technical issues…
MARKETING IN THE VIDEO GAME INDUSTRY
American Intercontinental University
Professor Carol Sagers
March 31, 2013
The purpose of this paper is to identify issues that impact the marketing success of the video game industry and to address potential ways to overcome barriers and obstacles that hinder these companies. Economical restrictions are reviewed and how they play a key role in marketing development for video game products.
MARKETING IN THE VIDEO GAME INDUSTRY
Video games and Children
Recent years video game's popularity has risen to where everyone in the world is playing. It
does many other things to human beside the fact playing video games gives you enjoy. Children should
be allow to play video games more often. I understand that there are some cons with playing video
games but also there are good sides. Generation has changed over years, many from kids, adults,
parents, everyone is playing video games in the world now days.
textbook explains the Internet, computers, electronic games, persuasion, and living in a world of change. Connected, these topics could develop a multitude of discussions about their evolution and future in the world of communication. Over time, all of these topics have seemed to become intertwined and invented new ideas and one that I think has had a major impact in our world today is video games. Since the beginning of their time, videa games have affected our communication and socialization technique…
Video Games and Chiropractors
Chiropractic (chiro- "hand" + praktikos "practical", means "done by hand.") is a complementary and alternative medicine health care profession (Dr. Gary Johnson, 12/6/12). My life focus has been sports. Any kind of sport: high school baseball, high school basketball, high school football, college football, college basketball, college baseball, National Basketball Association, National Football Association, and Major League Baseball. As a three sport athlete in…
Video game addiction has become a major problem in our society. Many children and teenagers play an excessive amount of hours of video games a day that they develop countless problems such as violent behavior, hostility and social isolation. These are but few of many examples of problems young teenagers face when they have gotten to the point of addiction. However, video game addiction is proven to be associated with academic achievements and social skills as well. (Chui et al…
Violence in Video Games
Violence in video games is an issue that has been increasing in severity over the past several years and is having a negative impact on those who play them, and on society as a whole. With new developments in technology, video games are becoming more and more realistic, making the gamer feel like they are actually in the game itself. However, this increase in realism is beginning to blur the lines…
Are Video Games To Be Blamed?
In today’s society, videos games are a source of controversy as they tend to be blamed for a lot of the violence and aggression experienced. It is true that violent video games can have lasting effects on younger children, but those types of games are not developed for children. They were developed for mature adults who should be able to handle their conduct. Not all video games are violent; in fact, only about five percent of the titles released are violent in nature…
3 May 2013
Columbine Video Game Advertisement
As we know the Columbine shooting is a very provocative subject to many. The idea of us creating a game based on this tragic event is bound to be controversial at the very least, especially since the students who caused the shooting also played violent video games. When advertising for this game we must be aware of all viewers’ sensitivity to this subject. The ad seemed to be suggestive in ways I did not like, such as the heavy metal…
When I say the word gamer, many of you probably get an image in your head of a fat, lazy man sitting in front of his computer all day. I’m not saying that this image is completely inaccurate, but what if I were to tell you that the term “gamer” is used to describe thousands of members of a unified community?
I have been playing video games almost longer than I can remember walking, and have had lots of experience with other members of the gaming community, so…