• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15

The Computer and Video Game Environment

Extracts from this document...


The Computer and Video Game Environment Written & researched: James Noton For: Sir Stuart Challinor 24/11/06 Words: CONTENTS PAGE 1. Executive Summary 2. Intentions of the Report 3. The Marketing Environment 4. The Micro-Environment 4.1 Suppliers 4.2 Customers 4.3 Competitors 5. Situation Review 6. The European Video Game Industry vs. The US Video Game Industry 7. The Macro-Environment 7.1 SWOT Analysis 7.2 Pestle Analysis 7.3 Porter's Five Forces Analysis 8. Conclusions and Recommendations Summary of Abbreviations Research Portfolio 1. EXECUTIVE SUMMARY. - New products make the market ever changing. But profits are decreasing for specialists and generalists. This is mainly due to supermarkets and online specialists. - Overall penetration by households remains fairly static at 25-30%, implying that manufacturers are simply selling newer consoles to existing enthusiasts. - Nintendo's Wii attempts to bring casual gamers and families back into the market. 2.0- INTENTIONS OF THE REPORT. This report measures the extent to which changes in distribution channels have taken place and concentrates on the continuing issue of how different types of retailers' roles will evolve in this market as technology continues to develop. 3.0- THE MARKETING ENVIRONMENT. * Video and computer games is a relatively new market in retailing terms. However the pace of change is such that existing retail formats may have limited endurance, as platforms progress and the means of accessing and using games change. * Next-generation consoles look set to deliver new growth to the market. The question is, however, will they attract new users? Manufacturers have successfully sold more and more machines into the market, but household penetration has been largely unchanged at 25-30% for some time now. * In 2005, the video games sector increased by 15% in current value terms compared to 2004. * The improvement of modern technologies renders the video games market full of life. Manufacturers aim to continue to attract new consumers from all age groups and sociocultural backgrounds. ...read more.


Throughout the history of Japanese game design, many developers have seen fit to remain mostly anonymous, even using pseudonyms to a large degree in video game credits. * The division in labour for video game development is far different. For example, Japanese game design teams had a devoted designer, (which they called a "director") far earlier than American design teams adopted the practice. Yet it was clear that even with this centralized design process level designers and character designers were given a lot of flexibility to work within their boundaries as much as possible. For example, almost every level in Super Mario Bros. 3 has new gameplay concepts within it. * Additionally Japanese game designers throughout history generally had far more people working on a particular game then a comparable western design team. For example, Mortal Kombat, an American title, was developed by four people: a programmer, an artist, a musician, and a background artist. Street Fighter 2, a comparable Japanese title, had almost one artist working on every character in the game, plus two programmers, plus a musician with the result being a team of twenty or more people. 7.0 THE MACRO ENVIRONMENT 7.1 SWOT Analysis Strengths * There is an established base of consoles in many households. Gaming has widespread appeal as a leisure activity. Up to 30% of households have at least one form of console and an increasing number have hardware for more than one platform. * There is continuously lots of new product development to fuel the market. The development pipeline of new games for existing hardware and new hardware is strong. New developments, such as Wii, look likely to appeal to existing gamers but also to attract less active gamers into the market. * The products relatively short lifecycles prolong consumer attention. Gamers have demonstrated that they are more than willing to upgrade to the latest technological advances. ...read more.


As this interviewee stated each cycle is bigger but appears to be shorter than the previous one. 7.3 Porter's Five Forces * Supplier Power * It is easy for hardware suppliers to drive up prices since there are only three main players. Games publishers however have less power since outlets will have greater choice. * Buyer Power * There are a number of buyers but each individual buyer is not important to your business. The cost of a few of them switching from your products and services to those of someone else, would not be too big. So they shouldn't be able to dictate terms to you. * Competitive Rivalry * There are many competitors In the market that offer equally attractive products. * Threat of Substitution * There are lots of different buying options when choosing to purchase games or hardware. So substitution is easy and viable. * Threat of New Entry * It would cost a lot of time and money to enter the market and compete effectively. There are strong and durable barriers to entry, so retailers can preserve a favourable position and take fair advantage of it. 8.0 Conclusions and Recommendations The video games sector should continue to see healthy growth over future years. But historically, the games industry has always been very bad at promoting itself to people who aren't already interested. If I wasn't into games I wouldn't know where to go to find out about them. So unless new platforms attract new users, the market is not fulfilling its full potential. I think manufacturers should broaden the user base and identify receptive sub-groups for future targeting and what retailers can do to reach them. It looks like innovation therefore is the only way to go for publishers and retailers to remain on top of the game. In order to cope with continuously changing and evolving trends, publishers need to combine their awareness of latest consumer trends and the use of the latest technologies to create truly innovative games while satisfying old consumers/fans by updating classics. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Internet section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Internet essays

  1. Marked by a teacher

    ict online service

    The MP3 format is most popular, followed by Ogg Vorbis, Windows Media Audio, and RealAudio. E- radio is aimed at all type of generations as all type of generations listen to music as E-radio plays all types ofmusic from classical for the older genration to, pop for the middle aged people and rap for the younger generation.

  2. Ict Report Template

    So as to have two sets of backup in case on is destroyed or lost. Frequency - it would be every time before the website is given an update or the code is changed so as to make sure there are spare copies in case one of the updates contains

  1. In this assignment I am going to talk about Sony Corporation (Sony Computer Entertainment ...

    Televisions (CRT-based/ projections/ PDP/ LCD televisions, projectors for computers and display for computers) Information and Communications (PC, printer systems, portable info PC, broadcast and professional use audio/video/monitors and other professional-use equipments), Semiconductors (LCD/ CCD and other semiconductors) and Electrical components (optical pickups, batteries, audio/video/data recording media, and data recording systems).

  2. This essay critically discusses the social issue of homelessness and its impact on young ...

    issues such as racism, poverty and other forms of oppression (JRF website, 2007). While a wide range of circumstances might cause youth homelessness, CHAR (Housing Campaign for Single people) (in Shelter website, 2007) argue that there are two main causes for the homeless youth population, which is a lack of

  1. Does the exposure to violence in the media cause increased levels of aggression and ...

    media, the audiences response is to replicate as a sort of "copycat" violence. In today's economy, more people worldwide can now access videogames such as Grand Theft Auto and Call of Duty. An element recently implemented to enhance the video game experience is online multiplayer.

  2. In assessing the competitive position of a large online trader, we would use the ...

    The online Bookstore industry have become a fierce business which involves discounts, varied selections and fast delivery in which all three companies are challenging each other. So we can conclude that industry competition was intense. Bargaining Power of Buyers The consumers of this industry can be found in every corner of the population.

  1. E-commerce Technology

    Table 1 Internet users shopping online (%)* Country 1998 1999 2000 2001 2002 U.S. 20.2 26.1 31.2 35.7 40.5 Germany 13.1 19.5 25.3 31.3 38.3 UK 17.2 18.5 24.1 28.6 35.9 Denmark 10.9 17.6 22.7 28.8 36.8 Italy 7.7 13.6 18.1 23.5 28.7 Netherlands 14 17.5 22 27.5 34.5 Finland

  2. Critically analyse and evaluate current developments in consumer behaviour in relation to one transport ...

    These people are the "Been there, done that, brought the T-shirt" type of people, who go with the flow and follow the trends. (Cartwright and Baird 1999, pp.94-99) According to Stanley Plog's (1977) psychographic traits, cruiser's falls into the Midcentric category, as they seek familiar surroundings, they belong in the higher income group and are, from time to time adventurous.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work