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Gaming

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In light of the strategic tactics it would be fair to comment that Sony has the upper hand at the moment. However this does not by any means suggest that there is no niche in the market for rivals. By further analysing the computing industry it is evident that consoles have the edge over PC's in the video gaming industry.
The Internet is rapidly rising in use, while consoles will continue to dominate, the advent of Internet gaming could conceivably raise. Despite this dominance in the computing industry the average console price drops by around 30% in each year after it's launch. Manufacturers are aware that they only have a product life cycle of no more than two years. The market size generally grows in the second year of the product cycle despite the price cuts this is due to more software availability and discounted prices.
It is apparent that the company's product life span is very much dependent on its software. The games software market is the fastest growing sub-sector, fuelled by the heavy market competition between the market leaders Sony and Nintendo. In 1999 games made for the Sony PlayStation accounted for three quarters of its income. It is known for a game to generate more income than a Hollywood film; as a consequence, well known film Stars and pop Stars help create games by providing scripts or soundtracks written for the game. The strategies which Sony and Nintendo adopt are highly influenced by the market pattern, hence the similarities in their strategies.
Playing catch up with your rivals is an on-going affair in all industries as only the strong hearted will survive. The strategies and technology development contribute a lot to the successful launch in this industry. Managing these new techniques and maintaining the constant development of future consoles are essential, as change is a constant issue which must be kept in mind at all levels of

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