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					The Video Game
    Industry
The Players, Strategy, and
         Future

  By: Kristian Peterson, Chris Orme, Gary
      Tonlinson, and Gwendolyn Rex
               The Players
   Microsoft Xbox

   Sony Play Station
    II

   Nintendo Game
    Cube
     Microsoft

         Strategy:
        Internet gaming

Integrated home entertainment &
           computing

       Technology leader
                 Advantages
   Technological experience & reputation
   Plentiful financial resources
   Use of new and current technology
    • Internet game capability
    • nForce graphics card
    • 10-gigabyte hard drive
    • Pentium III processor
    • DVD player
   Ability to wait out product growth
                Barriers
   Internet connectivity problems
   No experience or reputation in the
    video game industry
   Small game selection
   No established popular games or
    characters
   Introduced after the other consoles
    were already in the homes of
    consumers
             Sony


           Strategy:
 Maintain market share leadership

   Have the best game selection

Provide leading technology capability
               Advantages
   Console introduced earlier than the
    competition
   Plays games from Play Station I
   Variety and popularity of games
   Up to date technology
    • DVD play capability
    • Internet connection
   Reputation
                Barriers
   Keeping up with the high technology
    of Microsoft
         Nintendo


           Strategy:
  Dominate the younger audience

Strive to keep loyalty as buyers grow

Draw buyers through popular game
  characters and cheaper console
              Advantages
   A console that is $100 cheaper than
    the competition
   Popular game characters
   More wholesome games (less
    violence)
   Console mobility and simplicity
   Experience
                Barriers
   A console that lacks the technology
    of the competition
   Later introduction than Sony
   Viewed more for a younger audience
   Not backward compatible with
    Nintendo 64 games
The video game industry will continue
 to grow and diversify in its audience.
 We forecast a split in the market.
 One part will be more focused on the
 family and younger audience. The
 other part will be larger and draw
 those who are more technical and
 seeking the latest and greatest.
   Nintendo will dominate the younger
    audience and will try to make
    improvements to keep loyalty as their
    customers grow.
   Sony will continue to keep up with
    Microsoft in technology. In the long
    run, they may loose majority status, but
    their game selection will keep them the
    leader for some time.

   Microsoft will continue to be a leader
    and trendsetter technologically. Sony
    will be their major competition, but
    Microsoft will establish a large market
    share.

				
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posted:12/18/2011
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