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Video Game Industry : - Case Study Example

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Date Video Game Industry The video game industry has grown significantly in the recent years because of the advances in technology and consumer trends. The companies that have remained strong and profitable in the industry such as Sony, Nintendo and Microsoft all have excellent advertising campaigns and high corporate resources…
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Video Game Industry The video game industry has grown significantly in the recent years because of the advances in technology and consumer trends. The companies that have remained strong and profitable in the industry such as Sony, Nintendo and Microsoft all have excellent advertising campaigns and high corporate resources. For an entrant in the industry to be successful it must have an effective strategy formulation to lead and anticipate competitive changes in this rapidly growing industry. Like Microsoft, a large portion of the company’s revenues are spent on research and development to sustain its competitiveness.

Another aspect that must be taken into consideration is that the company should develop intuitive and easy to operate game systems like those developed by Nintendo. Their goal is always to expand the gaming population. Some industry players have lost their market share and profitability because it failed to advance in technology. Since the product life cycle of the industry is short, other firms failed to succeed in the industry because they took too long to develop a new game or software. In order to be successful in developing and commercializing a technology-based product, a company should have access to leading scientific research, highly skilled and creative product development team, well integrated supply chain backed by a strong sales team and a good corporate reputation.

Work Cited Scribd.com. Competition in Video Game Consoles: Sony, Microsoft, and Nintendo Battle for Supremacy. 2008. Web. 4 May 2011. http://www.scribd.com/doc/21376284/Video-Games-Industry-Final

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