...and economic characteristics of the video game console industry? What is the industry like? 2. What is competition like in the video game console industry? Do a fi ve-forces analysis to support your answer. Which of the fi ve competitive forces is strongest? Which is weakest? Would you characterize the overall strength of competition in video game consoles as fi erce, strong, moderate to normal or weak? Why? 3. What forces are driving changes in the video game console industry? Are these driving forces acting to make the industry more or less competitively intense? Are the driving forces acting to make the industry more or less profi table in future years? 4. What 3-5 key factors determine the success of video game console developers like Nintendo? 5. What is Nintendo’s strategy? Which of the fi ve generic strategies discussed in Chapter 5 is Nintendo using? What are some of the recent offensive and/or defensive strategies that Nintendo has employed? Have these tactics been successful? 6. Is it fair to characterize Nintendo’s introduction of the Wii as a blue ocean strategy? Why or why not? 7. How well is Nintendo’s strategy working in terms of the fi nancial performance it is delivering? Should shareholders be pleased? Why or why not? What 2-3 weaknesses do you see in Nintendo’s fi nancial performance? 8. What does a SWOT analysis reveal about the attractiveness of Nintendo’s overall situation? Is the company’s competitive position as solid as top management...
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...Nintendo is a company that creates video games and game consoles. Nintendo is the creator of the Game Boy, Super Nintendo, Nintendo DS, Nintendo 64, Nintendo GameCube and of course the Wii. Nintendo is only one of the few companies that create gaming systems, and is in constant competition with Sony (PlayStation) and Microsoft (Xbox). Nintendo’s revenues in 2009 were $19,308.1 million, with a net income of $2,930.8 million. 1. What are the defining businesses and economic characteristics of the video game console industry? What is the industry like? (10 points) 2. What is competition like in the video game console industry? Do a five-forces analysis to support your answer. Complete the following as part of your answer. Make sure to explain the reasons for your answers. (10 points) a. The bargaining power and leverage of buyers is a ________ competitive force b. The bargaining power and leverage of suppliers is a _______ competitive force. c. Competition from substitutes is a _______ competitive force. d. Threat of entry is a ________ competitive force. e. Rivalry among competing video game console producers is a _______ competitive force. Overall assessment: 3. What forces are driving changes in the video game console industry? Are these driving forces acting to make the industry more or less competitively intense? Are the driving forces acting to make the industry more or less profitable in future...
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...Netflix Video Game Streaming Name MKT/421 Date Instructor Name Netflix Video Game Streaming Marketing Plan: Phase I Trying to introduce a new product or service into an already well-established industry can be an intimidating, yet profitable idea. Take Netflix and the media rental industry as an example. In 1997, Netflix made their debut into the online media rental industry (Netflix, 2013). About 10 years later, their flat rate monthly rental fees, their stellar DVD-by-mail service, and their streaming media options had turned Netflix into a media rental powerhouse. However, video games are one aspect of media rental and streaming that the company has consistently steered clear of. To demonstrate that Netflix could (and perhaps should) offer video game rental and streaming options as their next step for growth, a marketing plan can be established. This marketing plan should include: an overview of the Netflix organization; a description of the proposed video game services; an explanation of the significance of this new service to Netflix; a SWOTT (strengths, weaknesses, opportunities, threats and trends) analysis of this service; and the marketing research approach and strategy that would be used to implement video games into Netflix’s service lineup. Organization overview. Established in 1997, Reed Hastings and Marc Randolph founded Netflix with one goal; to revolutionize the way people enjoyed entertainment (Netflix, 2013). At its inception, Netflix was a membership-based...
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...Five Forces Analysis of the Video Game Industry The video game industry is the economic sector involved with the development, marketing and sale of video and computer games. It includes video game consoles, game software, handheld devices, mobile games and online games. The video gaming industry has been growing exponentially in recent years with Sony, Microsoft and Nintendo competing for the higher profits in the market. This essay will analyze each of the five forces acting on the industry: threat of new entrants, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and the competitive rivalry among existing firms. Then it will be determined if the video game industry is still an attractive industry for Sony. The video game industry has high entry barriers because of its high research and development costs, and capital investment needed to start a business in the console industry. The cost required to develop and manufacture a product that could be a decent competitor in this market is too great for a non-established company in this industry. The technology that is needed to be successful is too advanced for new competitors to achieve. For this reason, the threat to Sony, Microsoft and Nintendo of new entrants, was not very high in 2008. Additionally, Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s gaming systems were very well established names in the industry. The prestige of these products was so strong that it...
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...Skylander Term Paper 1. The instrumental source of value creation for Activision via activities of Vicarious Visions was based on the core innovation involving using RFID technology to wirelessly connect a computer to the toy figures via the USB port. In the driving seat of this development were Bala brothers who had accumulated significant experience in the video gaming industry, and thus, who were well positioned to understand nuances of the market, latent and unmet needs. This revolutionary innovation has given birth to an entirely new genre of the life-to-toy gaming approach that since has undergone rapid evolution. In its strategic positioning of the new product through differentiation the company took advantage of the natural desire of children to re-enact imaginary world into reality. Only Skylander reversed the direction of such transgression according to the current state of technology, from reality back into imagination, augmented and embodied by the video game experience. This product was a natural progression of a novel concept developed by Activision in 2005 when the game Guitar Hero heralding detachment from the existing consoles and demonstrating capacity to penetrate the market by crossing over various platforms. Thus, armed with the previous hugely successful experience of developing in-house capabilities to establish production of plastic and electronic assembly designs, the company was less averse to the risk posed by venturing into a...
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...and the gaming market 4 the gaming market size 5 segmentation and target positioning 6 existing and new product management 8 competition 10 Recommendations 11 product development 11 conclusion 12 referencese 13 EXECUTIVE SUMMARY The aim of this review is to seriously analyze the strength and flaws of Sony’s gaming sector from a marketing perspective and to assess the present pattern within the game playing industry. This review will consist of research of Sonys gaming industry placement within the market, their application of the marketing mix, existing product management and new product management and how the businesses earnings compare to that of their competitors. INTRODUCTION The game playing industry, once a niche form of interaction for children and youngsters, has become a multimillion dollar market that competitors the movie market with regards to income and reputation. The gaming industry has gone through a total adjustment lately. Gone are low technological innovation games, inferior quality consoles, and turned off customers. This market as now is at the vanguard of technological innovation and this indicates simple and fast. This market is extremely aggressive and companies desperate to contend worldwide must be highly in track with nationwide marketplaces to survive (Porter, 1980) SONY AND THE GAMING INDUSTRY In 1994, Sony Pc Entertainment America was established as the North American...
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...Market 2.1 Positioning 2.2 Segmentation 3. Marketing Mix 3.1 Product 3.2 Price 3.3 Promotion 3.4 Place 3.5 People 3.6 Physical 3.7 Process 1. Situation analysis 1.1. Macro environment The PESTEL analysis describes a framework of macro-environmental factors. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. 1.2.1. Political The video game industry is influenced by factors such as taxation policies, foreign trade regulations and social welfare policies (some games have sexual/violent content). Video games tend to play with the emotions of people. Governments have the authority to control the content of the video game frames. 1.2.2. Economic The income of the consumers in the video game industry have an effect on their buying behaviour. If people fall under a low-income range, they might not be able to buy a video game because they are relatively expensive. 1.2.3. Social Factors that can influence the video game industry are: income distribution, lifestyle changes, level of education, population demographics, attributes to work, consumerism, etc. Nintendo’s action to open World of Nintendo showrooms was to attract and influence customers. Games also have an influence to the culture of people. 1.2.4. Technological The role of Technology is vital in the video game industry as it vital to...
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...Redbox – Marketing Plan U.S.A Esther Orosz, Wiebe Poelmann, Shu K, Martin Gerzmann 2/15/2011 Redbox – Marketing Plan 1 CONTENTS 2011 1 Contents ......................................................................................................................................................................1 2 Executive Summary ....................................................................................................................................................3 3 Introduction ................................................................................................................................................................3 4 Problem Statement ......................................................................................................................................................4 5 External Analysis ........................................................................................................................................................4 5.1 Marketing Segmentation .....................................................................................................................................4 5.1.1 Geographic Segmentation ............................................................................................................................4 5.1.2 Demographic Segmentation .........................................................................................................................4 5.1.3 Pshychographic...
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...EXECUTIVE SUMMARY Founded in 1993 and headquartered in New York City, Take-Two Interactive Software, Inc. are a global publisher, developer and distributor of interactive entertainment. Take-Two also distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. The company has approximately 2,100 employees working in 15 countries, and Take-Two’s common stock is publicly traded on NASDAQ under the symbol TTWO. The company markets its interactive entertainment for customers here in the United States and internationally. They offer their products under the labels, including Rock star Games; and 2K, which publishes its titles under 2K Games, 2K Sports, and 2K Play. It also develops and publishes action and adventure products under the Grand Theft Auto brand, as well as other franchises. Take Two’s products are designed for console gaming systems, such as PlayStation 3 and PlayStation 2, Xbox 360, and Wii which is a handheld gaming systems that consist of DS, 3DS, and PlayStation Portable and personal computers including smart phones and tablets. The delivery of its products is done through physical retail, digital download, online platforms, and cloud streaming services. The company sells its software titles to retail outlets in North America, Europe, and Asia through direct relationships with retail customers and third-party distributors. ...
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...etc.2. Cultural and traditional changes3. Educational and language differences4. Social safety and benefits5. Consumer attitudes and opinions on online sites6. Ethnic/religious factors | Technological1. Technological development and innovation growth2. Skilled resources3. Licensing, patentsintellectual property issues4. Adaptation of new technology5.Research & Development | Environmental1. Environmental industrial growth2. Consumer attitudes, opinions and support3. Climate and natural support 4. Business environment and media support | * Legal * 1. Improper law and legal framework related online sites. * 2. Customer protection * 3. Banned of several online sides due to porn, sexy, religious and nation security related videos posted on these sites * 4. Changes in taxes | (Source: Bowhill, 2008) Stakeholder Analysis Stakeholders | Interests | Power and Influence | Impact | Board of Director | High | High | Highly impacts on the performance of the company and globalization | Management and Employees |...
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...The feasibility for SONY to develop low-end versions of its video games in UK market from the perspective of marketing 2.0 Aims and objectives: 1. Obtain a preliminary understanding of the target market environment of SONY (1) Understand the basic development conditions of the UK game market. Is it a mature market or an emerging one? (2) Understand SONY's main products in the UK game market. Is there a market for lower-end video game products of SONY? (3) Understand the sales of SONY’s video game in 2013 in the UK. Is it impressive in the industry today? (4) Understand the conditions of main contenders of SONY. Compare the sales between SONY and its main competitors in 2013. (5) Understand the market share of the low-end video games developed by SONY in the UK. Is there a market for it? What kind of consumers prefer to buy such products? 2. Analyze the establishment of a viable product marketing mix of SONY in the low-end market from the perspective of 4P marketing theory. Price (1) What is the consumer expected price (2) What pricing strategy is appropriate for SONY (3) Estimate whether the product can bring profit Product (1) How to position a suitable product to meet market demand (2) How to increase the competitiveness of the products with an outstanding product concept. Place and promotion (1) How to select ideal sales locations to boost sales (2) What promotional tools would be appropriate? Through the answers to the first part of questions, it can be known...
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...Executive Summary This report will provide several research findings and discussion of large scaled organizations utilizing integrated marketing communication tools whilst measuring the environment (context) that they operate under while providing several suggestions of improving their communications to parties internally and externally. There this group is consisted of 3 members and the chosen industry and organization for this report is gaming consoles; Microsoft Xbox. While conducting our research on the context of the industry and Microsoft Xbox, several marketing tools were used to acquire this information. With the utilization of Asteroid Tabulation, we were able to acquire supporting information on consumers. This information would involve the use of the Roy Morgan surveying data base. By conducting marketing research through the use of Asteroid and Roy Morgan resources the group was able to determine and observe formalities, and purchase and consumer behaviour of the customers. Other areas of context of the gaming console industry were analysed, one of the areas included the way Microsoft Xbox has communicated to prospective customers and current customers. In terms of marketing perspective; we will discuss the ideologies and perspective Microsoft Xbox are communicating to their customers. A situation analysis is also conducted in terms of the environment Microsoft and other gaming console company’s face. As competitors also determine the behaviour of how a corporation...
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...all group members have contributed equally to the group work. Table of Contents I. INTRODUCTION: 3 II. ANAYLYSIS OF INDUSTRY AND NINTENDO COMPANY: 3 1. Industry circumstances: 3 2. Key success factor: 3 3. Competitively important resources and capabilities of Nintendo: 4 III. ISSUES AND RECOMMENDATIONS FOR NINTENDO: 6 Table of Figure Figure 1: Estimated Industry Revenue by Platform Holder 8 Figure 2: Estimated Console Software Dollar Sales 8 INTRODUCTION: This paper will provide a general look inside the market supremacy in the console segment of the video game industry. It also shows the strategic issues and recommendations for Nintendo company. ANAYLYSIS OF INDUSTRY AND NINTENDO COMPANY: 1. Industry circumstances: Sales of video game consoles, software, and accessories reached a record high of $23.1 billion in 2008, which was 19 percent greater than 2007 industry revenues. Growth in the industry had fluctuated significantly over the past few decades and had been driven by technological and society trends, among other factor. Despite the increasing intensity of competition, the video gaming industry as a whole had continued to grow through the end of 2008 in the face of the downturn in the general world economy. However, as the recession lingered into 2009, the video game industry became affected, with industry revenues declining from $1.7 billion recorded in June 2008 to $1.2 billion in June 2009. Sales of consoles were affected...
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...Rivalry in Video Game Industry Introduction The video games industry faces an entirely new rivalry situation. After 11 years of leadership, Sony has nearly lost its strong positions on the market, which gives the other two players – Microsoft and Nintendo - the chance to compete for the leadership. While the goal of Nintendo is to stay in the industry, Sony and Microsoft aim to strengthen their positions on the home entertainment market, which is constantly growing. The key factors, the companies need to consider in order to gain a competitive advantage, are good marketing and well developed distribution, as well as providing a huge range of games with recognizable characters. As the market segmentation increases, it is of crucial importance to put an emphasis upon the new target groups and reqruit as many new players as possible. However, there are also a lot of factors outside and inside the industry, which play a major role and have to be considered in order to become a better idea of the state of the industry, and to estimate its profitability and tendency of growing. Summary of macro-environmental analysis Stricter legislation both advantageous and disadvantageous for the video games industry is expected. As governments become more concerned about the increasing violence among teenagers the control of video games content is strengthened. On the other hand the laws against piracy aim to reduce the number of the illegaly copied games. With the rise of the...
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...Microsoft’s Xbox Student’s Name: Glen F. McGregor Institution’s Name: Northwood University Microsoft’s Xbox This research paper presents the marketing strategy and philosophy used by Microsoft in selling their gaming console, the Xbox. The paper will evaluate and describe in depth the marketing of Xbox gaming and system. The research and assessment has been conducted by the developing company, Microsoft Corporation. Xbox comes in a variety of versions. One of the most popularized consoles is the XBOX 721X, a system upgrade that will be released to the market in 2015 (Lacher, Roth, Keller, & Schumacher, 2004 ). The earliest Xbox was in the market in 2001. It was marketed as being one of the leading gaming systems of the time. As technology advanced, the Xbox advanced too. The Xbox360 was brought to the market in the mid 2000’s. A new year calls for new surprises. In 2015, Microsoft will release the Xbox721x. The question then is, what strategy has Microsoft adopted in marketing the Xbox gaming console? Advertisement A new gaming system always comes with a lot of the excitement from the users. However, to know that a new product has been released to market, a company has to invest in advertising. There is a need for good advertising. Microsoft’s advertising has never disappointed its clients. It always meets virtually all consumer expectations. Generally, when Microsoft’s name is on a product...
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