Business & Corporate Strategy Video Games Industry
Business & Corporate Strategy
Case Study
Competition in Video Game Consoles: The State of The Battle For Supremacy
Julie Petitdemange
MGE – 2ème Année
24/11/2010
Ecole de Management Strasbourg
I. Analayse the Industry of Video Games
History:
The video game industry grew in prominence with the 1985 introduction of the Nintendo entertainment system and was well into battle for supremacy among third generation consoles in 2008.
The development of video games began in 1947 with the introduction of the first games: “Tennis for Two” and “Spacewar”. The first patent for video game was created in 1968 by Ralph Bear. Until 1983 consumers could only play simple arcade-type games, but Nintendo rescued the video game industry in 1985 with the introduction of NES (Super Mario Brothers).
The sale of game systems and software declined as the installed as the installed base grew and consumers had purchased “must have” titles: industry sales slowed considerably between 2003 and 2005.
2005 represents the launch of a new generation games which offers unparalleled computing power and high definition (HD) graphics and in the same year sales of video games equipment in the US exceeded 10 billion dollars.
The most popular category of games is Action with 30,1% of related PC games in 2005.
The global size of the market is quite high with 35,248 million dollars in 2005 (compared to 24,352 million on 2000) and the “boom” is continuing over the years.
Competition
Producers of video game consoles:
Nintendo’s ability to create innovative game systems leaded to a competitive, technology driven industry. Today, the industry of video games is clearly composed of three main competitors that have exclusive possession on the market with their products: * Microsoft Entertainment and devices division * Xbox system (Nov 2001) * Xbox 360 (2005) * Xbox Live Website
* Sony * Play Station (1995) * Play Station 2 * PSP (March 2005) * Play
Case Study
Competition in Video Game Consoles: The State of The Battle For Supremacy
Julie Petitdemange
MGE – 2ème Année
24/11/2010
Ecole de Management Strasbourg
I. Analayse the Industry of Video Games
History:
The video game industry grew in prominence with the 1985 introduction of the Nintendo entertainment system and was well into battle for supremacy among third generation consoles in 2008.
The development of video games began in 1947 with the introduction of the first games: “Tennis for Two” and “Spacewar”. The first patent for video game was created in 1968 by Ralph Bear. Until 1983 consumers could only play simple arcade-type games, but Nintendo rescued the video game industry in 1985 with the introduction of NES (Super Mario Brothers).
The sale of game systems and software declined as the installed as the installed base grew and consumers had purchased “must have” titles: industry sales slowed considerably between 2003 and 2005.
2005 represents the launch of a new generation games which offers unparalleled computing power and high definition (HD) graphics and in the same year sales of video games equipment in the US exceeded 10 billion dollars.
The most popular category of games is Action with 30,1% of related PC games in 2005.
The global size of the market is quite high with 35,248 million dollars in 2005 (compared to 24,352 million on 2000) and the “boom” is continuing over the years.
Competition
Producers of video game consoles:
Nintendo’s ability to create innovative game systems leaded to a competitive, technology driven industry. Today, the industry of video games is clearly composed of three main competitors that have exclusive possession on the market with their products: * Microsoft Entertainment and devices division * Xbox system (Nov 2001) * Xbox 360 (2005) * Xbox Live Website
* Sony * Play Station (1995) * Play Station 2 * PSP (March 2005) * Play