...framework helps to understand how the competitive dynamics within and around the video game industry are changing. The two frameworks are discussed below: PESTEL Framework: This categorises environmental influences into six main types, namely: political, economic, social, technological, environmental and legal. A PESTEL analysis on the video game industry is carried out below: Political: Factors such as taxation policies, foreign trade regulations and social welfare policies influence the video game industry. Video games have a tendency to play with the emotions of people which inturn can threaten peace and law, a country being multicultural. Therefore Government has the authority to control the contents of the video game frames. Economic: Places such as U.S and Japan are largely dominated by the video game business. Therefore contributing towards the GDP of their countries. Interest rates have not much impact on the video game business as they manufacture their own units. The disposable income of the consumers in the video game industry has an effect on their buying behaviour. For example people who fall under a low income range may not afford to buy a video game of a high price. Nintendo’s low manufacturing cost was also one of the reasons for it to sell its games at a nominal price, therefore increasing its sales. Social: The social factors that influence the video game industry are population demographics, income distribution, lifestyle...
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...of a video game retailing store in UK with capabilities to drop ship from UK or United States of America. This plan depicts as well as showcases the expected financials and operations over the next three years. The UK Gaming Store is based in The United Kingdom; the store will provide an expansive inventory of video game consoles and sales of new/used video games to customers in its targeted market. The Company was founded in 2013 by Michael Turay. 1.1 Products and Services The primary revenue stream for the business will come from the sale of new and used video games. In regards to new video game sales, the Company will work with authorized distributors to obtain its inventories. Used video games will be purchased directly from customers that want to divest old inventories of video games. The Company anticipates that it will be able to purchase used video game inventories at 30% of the value of which it will resell the game. The Company’s secondary revenue stream will come from the sale of video game consoles including PlayStation 3, Xbox 360, and Nintendo’s Wii. The third section of the business plan will further describe the services offered by the Video Game Store. 1.2 The Financing Michael Turay is seeking to raise $150,000 from a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. 1.3 Mission Statement The Video Game Store’s...
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...the key drivers of change. On the other hand the five forces framework helps to understand how the competitive dynamics within and around the video game industry are changing. PESTEL Framework: This categorizes environmental influences into six main types: political, economic, social, technological, environmental and legal. Political: Factors such as taxation policies, foreign trade regulations and social welfare policies influence the video game industry. Video games have a tendency to play with the emotions of people which inturn can threaten peace and law, a country being multicultural. Therefore Government has the authority to control the contents of the video game frames. Economic: Places such as US and Japan are largely dominated by the video game business. Therefore contributing towards the GDP of their countries. Interest rates have not much impact on the video game business as they manufacture their own units. The disposable income of the consumers in the video game industry has an effect on their buying behavior. For example people who fall under a low income range may not afford to buy a video game of a high price. Nintendo’s low manufacturing cost was also one of the reasons for it to sell its games at a nominal price, therefore increasing its sales. Social: The social factors that influence the video game industry are population demographics, income distribution, lifestyle changes, social mobility, attributes to work, consumerism, level of education and...
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...December 2014 Are Gamers Really a Threat? Within the last fifteen years, the video game industry has grown exponentially and is now arguably one of the most robust industries in the entertainment world. Video game sales have more than quadrupled in this time as well, which accounts for this multibillion dollar industry. Inside this enormous industry, hundreds of genres span the base of the industry but a few genres make up the core. Within this core are game categories, such as FPS (First Person Shooters), which have some aspect of violence to it. The popularity of these violent video games has risen greatly within the last 5 years. In 2008, from the age group 12-17 in the United States, 97% of them played video games, and 10 of the top 20 best-selling video games in the United States contained violence (ProCon.com). These violent video games are attributed to the cause of increase in school shootings as well as increases in domestic and youth violence. Critics of these violent video games argue that the because the violence is encouraged to do well in the game through reward, that the player becomes desensitized towards the violence and will teach children that violence is an acceptable way to resolve conflicts (ProCon.com). Video game advocates claim that the research is deeply flawed because there has been no link between video game violence and that of social violence. Many argue that the game actually relieves anger and aggression in a safe outlet (ProCon.com), as well as...
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...Video games are a form of entertainment created around late 1960s and beginning of 1970s. The effects of violence in video games on negative behavior has been widely studied and debated. In the United States, Europe, and Japan, there are more than 130,000 gamers from elementary school to college. (Jayson 1) This controversial topic has become a serious issue after numerous senseless shootings occurred and particularly after the Sandy Hook Elementary School Shooting. It was discovered that Adam Lanza, the shooter in Newtown, Connecticut, played violent video games such as “Call of Duty.” (Guarino 2) This video game takes place in World War II where the player has to kill anyone on the opposing side. Some people believe violent video games are morally wrong and inappropriate for children. These types of video games teach children that it is perfectly acceptable to harm another person in order to advance to the next level. They don’t learn any consequences to their actions because they can reset the game at any time. The rating system for video games has many flaws as well. This shows that there is no control over the restrictions on violent video games. Others argue that kids find video games enjoyable and such activities bring them closer to their peers. Children that usually play video games are more outgoing and make friends much easier. Violence is also extensively used in children’s literature. Kids have already been exposed to violence and eventually will in the future. They...
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...The Video Game Industry An Industry Analysis, from a VC Perspective Nik Shah T’05 MBA Fellows Project March 11, 2005 Hanover, NH The Video Game Industry An Industry Analysis, from a VC Perspective Authors: Nik Shah Nik.Shah@Dartmouth.edu Tuck Class of 2005 Charles Haigh Charles.Haigh@Dartmouth.edu Tuck Class of 2005 • The video game industry is poised for significant growth, but many sectors have already matured. Video games are a large and growing market. However, within it, there are only selected portions that contain venture capital investment opportunities. Our analysis highlights these sectors, which are interesting for reasons including significant technological change, high growth rates, new product development and lack of a clear market leader. The opportunity lies in non-core products and services. We believe that the core hardware and game software markets are fairly mature and require intensive capital investment and strong technology knowledge for success. The best markets for investment are those that provide valuable new products and services to game developers, publishers and gamers themselves. These are the areas that will build out the industry as it undergoes significant growth. • A Quick Snapshot of Our Identified Areas of Interest • Online Games and Platforms. Few online games have historically been venture funded and most are subject to the same “hit or miss” market adoption as console games, but as this segment grows, an opportunity...
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...The Video Game Industry An Industry Analysis, from a VC Perspective Nik Shah T’05 MBA Fellows Project March 11, 2005 Hanover, NH The Video Game Industry An Industry Analysis, from a VC Perspective Authors: Nik Shah Nik.Shah@Dartmouth.edu Tuck Class of 2005 Charles Haigh Charles.Haigh@Dartmouth.edu Tuck Class of 2005 • The video game industry is poised for significant growth, but many sectors have already matured. Video games are a large and growing market. However, within it, there are only selected portions that contain venture capital investment opportunities. Our analysis highlights these sectors, which are interesting for reasons including significant technological change, high growth rates, new product development and lack of a clear market leader. The opportunity lies in non-core products and services. We believe that the core hardware and game software markets are fairly mature and require intensive capital investment and strong technology knowledge for success. The best markets for investment are those that provide valuable new products and services to game developers, publishers and gamers themselves. These are the areas that will build out the industry as it undergoes significant growth. • A Quick Snapshot of Our Identified Areas of Interest • Online Games and Platforms. Few online games have historically been venture funded and most are subject to the same “hit or miss” market adoption as console games, but as this segment grows, an opportunity...
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...1 Brooke Sennott Dr. Litzky BA 422W 10th February, 2014 Assignment 1: Nintendo’s External Environment Between the macro-environment and the immediate industry and competitive environment, there are a number of opportunities and threats for Nintendo to consider while drafting its strategic movements. As an overview, Nintendo is relevant within many different industries -primarily electronics, gaming and entertainment. Demographically speaking, Nintendo reaches one of the widest audiences for its products; people of all ages and genders can find something for them at Nintendo. Socially, it is seen as a more “family-friendly” type of entertainment compared to some rival firms. Considerations for political, legal and regulatory environments are increasingly important seeing as Nintendo is a foreign company. Technological, economic, and global forces will also be discussed as to how they play a role in Nintendo’s future. Finally, the buyers, suppliers, rival firms, new entrants and substitute products will be analyzed to construct a clearer picture of Nintendo’s competitive environment. Demographically, the videogame entertainment software industry is broadening. What used to be a younger, male-dominated industry is becoming more diversified with new needs, interests and demands from consumers. 40% of all gamers are female; the average age of a gamer is 34 years old; and 75% of gamers are 18 or older.1 These few, simple statistics highlight incredible opportunities...
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...certain people, there are others that only focus on its negativities. As game stations have become amazingly advanced in the last few years, so do their games. Games have amazingly transformed from 2-dimensional images to now complicated concept. Recently, the topic for most of these newly developed games have focused strongly on violence, which is stirring up a commotion about whether this increase in violence is reflected in individual’s aggressiveness. Even though several studies have been made about this growing problem, these studies only prove certain cases are true while most would neglect other important factors like the backgrounds, personalities and interactions of these candidates with other people. While it is true that most games are focusing too much on violence, there are legitimate sources that prove video games are not the reason behind individual’s aggressiveness. Game Revolution's Duke Ferris did a hefty bit of research, foraging through countless studies about violence and video games, reading a number of charts and graphs from the Department of Justice, and has come up with this conclusion: the era of kids who grew up with video games (from about 1993 and after) has the least amount of violent crime rates ever recorded (Ross Miller 1) The world of gaming was introduced in the 1970s purely as a new method for entertainment and profit. It has now become one of the biggest industries in the world, gathering nearly...
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...One of the fastest growing industries in the world is the video game industry, where $24.8 billion was projected to be spent on video games globally in 2013 (Park & Lee, 2011). Resulting from this growth is a growing community of video game players, or gamers, generating new ways to interact and socialize. During the early years of video games, many games had the objective of obtaining a high score, where the champion could display their three initials—until someone surpassed it. Many video games were in an arcade machine form, where strangers and friends would gather around one machine and watch others play. Video games began to evolve, and with the evolution of games, came the evolution of the gamer, and the evolution of the social aspect...
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...THE VIDEO GAME INDUSTRY By Team 1: Nintendo TABLE OF CONTENTS History of the Video Game Industry P. 3 - 7 Twenty-First Century Trends P. 7 - 8 United States Market P. 8 - 10 Regional Markets P. 10 Industry Players P. 10 - 13 Consumers P. 13 - 15 Regulations P. 15 - 16 Overall P. 16 Exhibits P. 17 - 19 Appendices P. 20 - 33 Endnotes P. 34 References P. 35 - 36 The video game industry includes a broad spectrum of operations including: gaming consoles, games made for consoles, and online games which make up the retail segment of the industry. The majority share of the market is the development and manufacturing of games, consoles and accessories. This report goes through a history of the video game industry; trends to look for in the 21st century; the United States markets and the four segments (games and software, consoles, online games and software, and accessories); regional markets by segment; the major competitors in the video game industry; consumers of the industry, and the minimal regulations that affect the industry. The Appendices provide profiles for the major companies in the video game industry including Nintendo Co. Ltd., Microsoft Corporation, Sony Corporation, Electronic Arts Inc., and GameStop Corp. History of the Video Game Industry Though the history of video games goes back to the 1950s with...
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... 1. Market and Competitive AnalysisProduct MarketThe product market consists of Video Game Console (Hardware Part). The global market is worth$58 Billion in 2010. There are only three major players in the market – Nintendo, Sony and Microsoft.The global games console market consists of the total revenues generated by Nintendo, Microsoft andSony through the sale of their console platforms, including any handheld systems. Market values havebeen calculated using annual average retail prices for each individual market.Market AnalysisPorter’s 5 Forces:Threat of new entrants:The console gaming industry, is a market in which, only very technologically advanced and well-fundedcompanies can enter. Loyal customer bases and established subcultures have made it so new entrantswould have to provide something completely revolutionary to get customers to switch. Microsoft was thelast big company to join the competition and they struggled for a long time, despite being a well-knowntechnology giant.Competitor rivalry:Although this market has few leaders, the competition is fierce. Nintendo squares off with industry giantsSony (PlayStation) and Microsoft (Xbox). Each of the competitors is well funded and has the mostadvanced technological innovations at their fingertips. For example, Sony nearly went bankrupt tryingto beat out the competitors through innovation, and lost close to $700 million (on the PlayStation 3) in thefirst six months alone. Fortunately for Sony, they are a multi-billion dollar...
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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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...predatory pedophiles,[5] belief in ritual abuse by satanic cults of women and children,[6] scaremongering of the spread of AIDS,[7] and the War on Drugs.[8] Contents [hide] 1 Use as a social science term 1.1 British vs American 2 Characteristics 3 Examples 3.1 2000s: Human trafficking 3.2 1990s–present: Sex offenders 3.3 1980s–1990s: Satanic ritual abuse 3.4 1980s–1990s: Dungeons and Dragons 3.5 1980s–present: AIDS 3.6 1970s–present: Video games and violence 3.7 1970s–present: Crime increase 3.8 1970s–present: War on drugs 4 Criticism 5 Other 6 See also 7 References 8 Further reading 9 External links Use as a social science term[edit] Marshall McLuhan gave the term academic treatment in his book Understanding Media, written in 1964.[9] According to Stanley Cohen, author of a sociological study about youth culture and media called Folk Devils and Moral Panics (1972),[10] a moral panic occurs when "...[a] condition, episode, person or group of persons emerges to become defined as a threat to societal values and interests".[4] Those who start the panic when they fear a threat to prevailing social or cultural values are known by researchers as moral entrepreneurs, while people who supposedly threaten the social order have been described as 'folk...
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...2010 Santa Clara University MGMT 162- Capstone Professor Schneider Winter Quarter:2010 NETFLIX: A COMPANY ANALYSIS Prepared By Group 5: Alex Krengel, Annie Dudek, Rick Momboisse, Trish Paik, & Tyler Martin  Table of Contents I. Wall Street Journal Article and Executive Summary ..4 I A. Wall Street Journal Article 4 I B. Executive Summary ..5 II. External Analysis ..7 II A. Industry Definition ..7 II B. Six Industry Force Analysis ..8 II C. Macro Environmental Forces Analysis, Economic Trends, and Ethical Concerns ..15 II D. Competitor Analysis ..17 II D. 1 Netflix’s Competitors ..17 II D. 2 Netflix’s Primary Competitors ..17 II D. 3 Primary Competitors’ Business Level and Corporate Level Strategy ..18 II D. 4 How Competitors Achieve Their Strategic Position ..18 II D. 5 Willingness to Pay ..21 II D. 6 Comparative Financial Analysis ..22 II D. 7 Implications of Competitor Analysis ..23 II E. Intra-Industry Analysis ..24 III. Internal Analysis ..24 III A. Business Definition/Mission ..24 III B. Management Style ..24 III C. Organizational Structure, Controls and Values ..25 III C. 1 Organizational Structure ..25 III C. 2 Organizational Controls ..25 III C. 3 Organizational Values ..25 III D. Strategic Position Definition ..26 III D. 1 Corporate Level ..26 III D. 2 Business Level ..27 III D. 3 Resource & Capability Level ..28 Value Minus Cost Profile ..28 Value Chain ..28 VRIO Analysis ..28 Consumer Retention Analysis ..29 4Ps Analysis ...
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