Video Game Consoles - PowerPoint

Document Sample
Video Game Consoles - PowerPoint Powered By Docstoc
					Video Game Consoles


 Jamie        Gaming
Harfield      Heaven
Overview
   Game consoles are dedicated devices for
    playing video games.
   Have been around since 1970’s. Now 3 major
    competitors.
   Advertising aimed at fun
    and excitement.
   Industry faces many
    challenges.
History - 1970’s
(Did Brontosaurus Play Pong?)

   1972 - Magnavox Odyssey is first game
    console. Poor marketing caused it to fail.
   1975 - The famous Atari PONG console
    released.
      First of several versions.

      Atari known as a pioneer in home
        gaming for years to come.
   1976 - Coleco releases Telstar.
   A few other companies have products, but
    these 3 are the major competitors for rest
    of 70’s and start of 80’s.
    History - 1980’s
    (Plumbers Become Heroes)
   1985 - Nintendo Entertainment System
    (NES) debuts.
      Criticized for unreliability.

      Product recalled and repaired.
        Popularity takes off.
   1986 - Sega Master System (SMS)
    released to compete with NES.
      Technologically better than
        Nintendo, but games less popular.
                                            Mario Brothers becomes
      Technology for SMS made portable
                                            a hugely popular game
        and used for Sega Game Gear         for Nintendo, spawning
        (1991).                             many sequels.
History - 1980’s & 1990’s
   Nintendo is major console
    manufacturer, with Sega as
    major competitor. Sequels to
    NES, SMS & Sega Genesis
    released throughout 80’s &
    90’s.
   1995 - Sony comes on scene                 Remember Frogger?
    with Playstation.
       Originally an add-on for Nintendo.
       Deal fell through. Sony continued to
        develop as stand-alone.
History - 2000 to Today
   2001 - Microsoft joins console
    competition with Xbox.
       Marks the entrance of the last of
        today’s major competitors.
   Currently 3 major console
    models:
       Nintendo Wii (2006)
       Sony PS3 (2006)
       Microsoft Xbox 360 (2005)
Revenue
   US sales of Consoles &
    Handhelds, 2006:
       Hardware $4.6 billion
       Games $6.5 billion
   Worldwide sales of
    hardware & software:
       2005 - $29 billion
       Projected for 2011 - $44
        billion
Slicing Up the Pie
• Sony leads industry
with 50% market
share.
• Expected to stay the
same for next few
years.
• Nintendo & Microsoft
will remain major
competitors.
Target Consumers
   Traditionally men aged 12-35.
       By end of 2006,
            More than 2/3 of men 18-34 had
             access to console in their homes.
            80% of boys 12-17 had access.
   Women only 10% of video
    game players as of June,
    2006.
Target Consumers
   Beginning to diversify.
   Consoles in 46 million
    homes in US.
   148 million adults have
    access to a console.
   More than 1/3 of all adults
    online have game consoles.
   Average user plays for 2
    hours, 15 minutes per day.
Strategies
   Little growth in the gaming market for past
    few years.
       Everyone who wants to own and play video
        games has done so.
   Brand Loyalty critical.
       Keeping current gamers interested is difficult.
       Sales of game titles within each console makes or
        breaks the brand therefore exclusivity of titles
        means profitability.
   Tapping into the casual gamers market is
    crucial to sustain and promote future growth.
Strategies
   Uses eye-candy, lots of glitz and pop.
       Sex is central in marketing to the main
        demographic of men 18-34.
       Cutesy cartoon characters central towards
        youth game market, i.e. SpongeBob, Barney,
        Hello Kitty, Super Mario Bro., Donkey Kong,
        Pokemon, Harry Potter, Mickey Mouse, Bugs
        Bunny etc.
   Synergies are formed in cross-media
    promotions - movies, TV, books.
Sony’s Playstation 3 Baby Ad
   Takes a metaphorical approach to
    accentuate the superior technological
    capabilities of the PS3.
   Marketing wants to lead and define the
    market thus having others follow.
   PS3 campaigns are designed to be
    completely unique and different from other
    competitors.
   Aims to introduce and demystify technology.
    Ad available at
    http://www.youtube.com/watch?v=gqkNPcUMff
    U
Sony’s Playstation 3 Baby Ad
   Need to Satisfy Curiosity
       Baby represents clean slate innocence (the audience).
       Eyes had been closed and are opening for the first time to see the PS3
       Baby gasps in awe of the possibilities that only the PS3 can bring.
       Metaphor suggesting the target audience hasn’t seen anything yet;
        experience will be uniquely novel and eye-opening with a myriad of
        emotions that evoke tears of joy.
   Need for Nurture
       Baby extending its arms towards the PS3 and muttering “mama”
        suggests the PS3 can provide the kind of nurturing to satisfy curiosity
        in the same instinctual way that only a mother can do for a baby.
Sony’s Playstation 3 Baby Ad
   Need of Aesthetic Sensations and Need to Aggress
       From within the eyes of the baby; action packed explosions,
        ultra speed, guns firing, lasers etc., all in amazing detail.
        Implies what the consumer will have if they had a PS3.
   Need to Dominate and Need for Prominence
       Superior capabilities of the PS3 provide a virtual life-like world.
       Gives the player freedom and control within the games.
       The PS3 levitates before the tagline “Play Beyond” suggesting
        transcendence, while the reflective silhouette of the baby (the
        audience) in the machine ties-in the consumer to feel the
        dominance and prominence if they had the product.
Nintendo Wii Ads
 Cool, simple and fun approach to emphasize multiplayer and
  interactive features of the Wii.
 Promotes universal appeal across all age groups.
 Everyone in the family can play together.
 User-friendly and customizable games with the Mii feature.
 Wii campaigns designed to be cheerful and upbeat.
 Aims to specialize in “Fun Factor” in lieu of technological
  advantages.
 Cheaper prices for the machine coupled with the “Fun Factor”
  and family-friendliness is the main selling point.
Ads available at http://us.wii.com/tvcm_usa_gallery.jsp
                 http://us.wii.com/viewer_tvcm_usa.jsp?vid=5
Nintendo Wii Ads
   Need for Affiliation and Need to Escape
       Every ad had image of two Japanese men driving around in their
        tiny, cute and fun car to bring the Wii to average citizens across
        America.
       Men knock on doors and say the tagline “Wii would like to play.”•
       Target consumer is meant to relate to the people.
       People in the ad always seem bored, expressionless or puzzled.
       The Wii provides family cohesiveness by allowing them to enjoy
        the same games regardless of age.
   Need of Aesthetic Sensations
       Characters within Wii games are customizable.
       Not only will the consumer be playing the game, he/she will
        actually be in the game.
 “Built by Games”: the Microsoft
 Xbox 360
 This ad is available at
    http://www.youtube.com/watch?v=6rJQ7OR1seY.
• Hundreds of video games on the ground, a flat, green surface.
• A simple, childlike tune in the background.
• The games fly up like bits of paper and travel along the same path.
• They come together and start building a structure, while little bits of
sound from each game overlap.
• The games form themselves into an Xbox 360.
• Green bricks block our view of the Xbox and the screen says “The next
generation is over a hundred high-def games. The next generation is
now.”
“Built by Games” Xbox Ad
   Main message – machine is literally made from
    the games played on it.
   Underlying message – games = experience of
    playing games.
       Machine itself is literally made of fun and excitement
       Will fulfill person’s need for more fun and excitement in
        life.
       Appeals to Need to Escape – playing games on this
        machine is much more enjoyable than real life.
       Appeals to Need for Aesthetic Sensations – what are
        video games but massive sensory input?
“Built by Games” Xbox Ad
   Slogan – this machine represents the future, and the future is
    fun.
   Use of sound:
       Game noises – adds to the “fun and excitement” message.
       Childlike melody invokes time when life was simple and all
        about having fun – or so we try to remember.
   Use of color:
       Green offsets the gray of the machine.
       Green is color of living things. Game player is experiencing a
        healthy life by playing.
   Target audience – game players, anyone who likes fun and
    excitement, the “young at heart.”
Going Old School: Sega vs.
Nintendo
  Sega is pretty much out of the major console games, but this is an
   old ad from when the Sega Genesis came out.
 The ad shows the Sega Genesis and the SNES.
 Voice over claims that the Genesis has something called “blast
   processing.”
 Fast montage of Sega games including “Sonic the Hedgehog” and
   “Echo the Dolphin” while TV with Genesis is tied to back of drag
   racer.
 TV with Super Nintendo playing a Mario Brothers sequel is tied to
   the back of a very old truck.
 Drag racer drives across slogan, “Welcome to the next level.”
   Driver raises his visor and screams “Sega!”
This ad is available at http://www.youtube.com/watch?v=K03fQKkN7VI
Sega vs. Nintendo
   Main message – Sega’s technology and games are better
    than Nintendo’s.
   Underlying message – you will have a lot more fun playing
    Sega.
       Nintendo games are old, slow and boring.
       Nintendo is unoriginal - their games are all rehashings of Mario
        Brothers.
       Sega has an adrenalin rush better than drag racing – even the
        driver finds Sega really exciting.
   Target audience – game players, people who want fun,
    people who are impressed by technology but don’t know
    much about it.
Sega vs. Nintendo
   Game montage – lots of bright colors and fast
    motion underscore how much fun this machine is
    to play games on.
   “Blast processing” – pseudo-technical jargon
    makes you think you’re getting something special.
   Appeals to Need for Aesthetic Sensations – Sega
    has way more sensory overload for your brain
    than Nintendo does.
   Appeals to Need to Achieve – beating Sega
    games is a challenge, but beating Nintendo
    games is easy and boring.
In-Game Ads
   A new dimension in marketing specifically aimed
    at reaching the 18-34 male demographic.
   In-Game Advertising campaigns have become the
    ultimate opportunity to reach gaming consumers
    effectively and efficiently because gamers are
    operating at a much higher concentration level
    than someone who is passively watching
    television, glancing at a subway poster or flipping
    past a magazine ad.
In-Game Ads
   Reaction to in-game advertising is positive.
       70% of gamers say that ads inside games improve game
        realism.
   This new evolution is gaining momentum.
       $56 million spent on in-game advertising in 2005
       Expectations of $400 million in 2007
       Expected to grow to $1.8 billion by 2010.
   Major corporations taking action to seize opportunities
    within the new medium.
       Microsoft’s Massive Inc. is the current industry leader.
       Media giant Google is also getting in on the act with Adscape.
In-Game Ads
   Examples:
       Splinter Cell series – Nivea skin
        care products for men, Philips
        Norelco shaving products, Sony
        Ericsson cell phones.
       Need for Speed Underground –
        Cingular cell phone service,
        Burger King, Best Buy.
       Doom 3 – McDonald’s and Coke.
Cultural & Social Impacts
   Graphic violence
   Sexual content
   Racism
   Alcohol & tobacco use
   Effects on children & teens
       Aggression
       Depression
       Addiction
       Declining physical Health
Issues & Controversies
   Most central, infamous and buzz-generating:
    Rockstar’s Grand Theft Auto franchise.
   2002 - GTA 3 called for anti-social or
    sociopathic behaviors including random
    violence, killing police officers, carjacking,
    prostitution, murder, robberies and drug use.
   2005 - GTA: San Andreas discovered to have           Screenshot from
    “Hot Coffee” patch.                                  GTA: San Andreas

       Patch allowed people to engage in explicit
        sexual conduct within the game.
       Game also showed same behaviors as GTA 3.
       “Hot Coffee” controversy led to Congressional
        investigation of adult content in video games.
Supporters of Video Game
Content
   Gamers
   Game Developers
   1st Amendment/Anti-
    Censorship Groups
Critics of Video Game Content
   Legislators
   Religious Groups
   Parents’ Groups
   Anti-Racism Groups
                             Work by various groups has
   Minority Rights Groups   forced the video game
                             industry to adopt a ratings
                             system similar to TV and
                             movies.
Market Challenges
   Videogames ultimate in interactive
    entertainment.
   Developers must struggle to stay at cutting edge
    of technology.
       Devices & performance standards often obsolete
        within months.
       Must always release bigger & better to stay
        ahead of the competition.
   Budgets can rival Hollywood productions.
Market Challenges
   Marketing strategies must be pre-planned to ensure
    return on investment.
       Timing must be perfect.
       Must be coordinated with TV, print media, retailers, etc.
   If development falls behind schedule, company has
    tough choice:
       Remove some game functions to stay on schedule.
       Push back release date and lose marketing & sales dollars.
   Piracy losses can amount to billions of dollars annually.
       Illegal copies available on Internet for only $5.
       Global losses in 2004 = $3 billion.
Conclusions
   Companies spend - and earn - a lot of money from their video
    game advertising.
   Overt advertising uses themes like fun and excitement, family
    connections, innocence and simpler times. They also
    positively compare themselves to their competition.
   Covert advertising has viewers when they are guaranteed to
    be paying total attention to the ad.
   There have been many negative consequences to video
    games that society needs to look at.
   Video games are at the leading edge of entertainment,
    rapidly becoming the ultimate form of media due to all the
    possible synergies and convergences with other media. More
    undiscovered uses still to come.
Resources
   “A Brief History of the Video Game Console.” The Game Console. 19 March 2007
    http://www.thegameconsole.com/
   “Despite Competitors’ Gains, Sony to Lead Game Consoles Through 2010.” 2006. In-Stat.
    21 March 2007. http://www.instat.com/press.asp?Sku=IN0602145ME&ID=1614
   “Game Sales Charts.” 2006. PVC Console.com. 20 March 2007
    http://forum.pcvsconsole.com/viewthread.php?tid=15831
   Girard, Nicole. “Explaining Disconnect Between Women, Video Games.” 2006. Cnet
    News.com. 19 March 2007.
    http://news.com.com/Explaining+disconnect+between+women,+video+games/2100-
    1043_3-6082459.html
   “More Than One Third of US Adults Online Own a Game Console, According to
    Nielsen//Netratings.” 2007. Yahoo Finance. 21 March 2007
    http://biz.yahoo.com/iw/070313/0225814.html
   Morris, Chris. “More Room for Gaming.” 2007. CNN Money.com. 21 March 2007
    http://money.cnn.com/2007/03/05/commentary/column_gaming/index.htm
   “Nielsen: Video Game Consoles are in Nearly 46 Million U.S. Homes.” 2007. USA Today. 19
    March 2007 http://www.usatoday.com/tech/gaming/2007-03-07-console-rise_N.htm
Other Useful Links
   http://www.lionlamb.org/media_violence_video_games.htm
   http://www.psychologymatters.org/videogames.html
   http://www.apa.org/releases/videoviolence05.html
   http://www.esrb.org/index-js.jsp
   http://www.theesa.com/ip/anti_piracy_faq.php
   http://www.theesa.com/facts/top_10_facts.php
   http://www.massiveincorporated.com/site_network/pr/03.07.07.htm
   http://www.adscapemedia.com/
   http://www.thegoodside.com/
   http://www.igaworldwide.com/
   http://www.adweek.com/aw/national/article_display.jsp?vnu_content_id=1002343563
   http://news.com.com/Gunning+for+game+dollars/2100-1043_3-5809305.html
   http://news.com.com/In-game+ads+work,+study+says/2100-1043_3-5887880.html
   http://www.msnbc.msn.com/id/5722377/

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:68
posted:9/22/2011
language:English
pages:35