Eb Games Business Plan Essay

Nintendo has dominated the console market with their first handheld gaming device called Gameboy, having sold over 150 million units, and continuing to create more handheld ones. Games have also become easily accessible on smart phones, following the trend of portability. According to research conducted by the Entertainment Software Association (ESA), 43% of gamers play games on their smartphones, and 25% play on a wireless device. Video game consoles have drastically improved since the 1970s, having become lighter, faster, and more interactive. All of these improvements were made possible by the advancements in hardware.

If you've never touched a video game controller in your life, but do have avid players in your household, you may be in for a bewildering month. That's because we're on the verge of what the gaming industry excitedly calls 'a new console generation'. In short, the Xbox 360 and PlayStation 3, once the most powerful games machines on the planet are being replaced – the former by the Xbox One, the latter by the PlayStation 4 (PS4).

• Every company produce video game for different consoles, consoles are developed new generations fast, game developer should compete to gain license for new generation console.

The release of the next-generation gaming consoles has left the gaming industry is in frenzy. With so much demand for the consoles it feels as though people are ready to give away their legs to get either the PlayStation 4 or the X-Box One. With two of these monstrous gaming devices available, the decision to just choose just one console seems to be, for some, a life and death decision. Many people, as a result of not conducting the proper research, fail to realize how easy of a decision this is. In this much anticipated console race, the PlayStation 4 has a clear advantage over the X-box One and as a result, it is the console that consumers should look to buy.

The age of playing on the video game console was thought to end in recent years, but strong need for console gaming is still in demand. The Sony Playstation 4 has sold over 20 million, while Microsoft and Nintendo have sold half that amount. Sony, Microsoft and Nintendo are projected to earn over $15

Have you ever wondered which gaming console was the better pick, or purchase? I am sure a lot of people have run into this problem. I’m here with this essay to make sure you make the right choice, of course it’s your purchase so it’s all personal preference on which console you decide to buy. The two consoles I have chosen to compare & contrast are the Xbox One and the PS4. These consoles are both very well known consoles, and the developers who made the invention make lots of money off of these two consoles every year. These two well known consoles are probably some of the biggest money makers every year. When a new console is released and you’re trying to get your hands on it on the release day you may run into some problems. Even worse problems than Black Friday shopping, so make sure you’re ready for what may occur during your purchase. When purchasing one of the new consoles that come out. If you want to get an Xbox One or PS4 these two consoles are the front-runners of our current generation. For the

According to several studies, women are now making up a significant portion of the gaming demographic, but the industry hasn’t done much to make them feel welcome. During the last decade, the mainstream video game industry has seemed to operate under the same apparent assumptions: girls don’t play big action games, boys like the sexualization of girls in video games and won’t play as a female character unless she is heavily sexualized, and that girls play video games for the attention of boys. These assumptions are what allows the gaming industry to continue to focus on their male players, particularly young men, despite the fact that the number of women playing games today may someday soon rival the number of men.

Over the past ten years, the Sony and Microsoft gaming divisions have been in direct competition with one another with their Playstation and Xbox systems respectively. The “console war” was at it’s all time high in the fall of 2013 when Sony was set to release their Playstation 4 and Microsoft releasing the Xbox One within the same month of each other. Fans of both consoles were excited for them to usher in the next generation of gaming. Both systems were very similar in terms of graphic capability and overall power output, so it really came down to their lineup of exclusive games and the approach each company wanted to take with their respective console that was going to determine which system would come out on top.

Threat of Substitutes: The main substitute for a video game console would be a personal computer. They can both be used for playing different types of video games and be used for entertainment. The threat of this substitute edging out video game consoles is very low, because they are not completely similar. If anything, video game consoles are edging out personal computers in the gaming industry. The threat of substitutes in the video game is not very high. In 2008, this was not a very strong force in the video game industry.

Global Video Game Console Industries must try to maintain a sustainable competitive advantage through innovation such as creating an upgraded version of the game every year or increase their on and off line presence to better satisfy their customers. There are many competitors in the Video Game industry that include PlayStation 3, Xbox 360 and Wii. These gaming consoles compete in terms of price, durability and loyalty. With Intensity Rivalry being a major determinant of competitiveness, video game companies work towards dominating the industry as well as gaining the major part of the industry profit pool. (Blackwell, 2002)

The fifth and final force is that of the intensity of rivalry. This is the strongest force in the video game industry. Nintendo was very strategic in targeting an audience that Microsoft and Sony neglected. While Microsoft and Sony focused on the typical gamers, males ages 18-34, Nintendo focused on a broader audience “everyone” when creating their Wii. In the video game industry rivalry Microsoft and Sony are battling for the same market, while Nintendo has much of its audience all to itself. This is why

However, when Microsoft started the development of its next generation console- the Xbox 360- it recognized the deficits and problems related to its initial strategy: the company was operating under too high costs in order to assure high product availability which was not the critical factor in this business. The nature of the console business is about providing the customer with a cheap hardware and a variety of games, in order to generate profits from games sales. Additionally, the first Xbox was released one year behind Sony’s PS2, Microsoft’s biggest competitor in the market. This delay resulted in a substantial loss of sales and consequently reduced game sales. Therefore, Microsoft learned that the Xbox 360 had to be launched ahead of Sony’s PS3. Accordingly, one relevant part of Microsoft’s new strategy was the “first-to-market” approach. Another essential change in Microsoft’s business strategy concerned its cost structure in the Xbox supply chain. Whereas the initial strategy focused heavily on reliability, Microsoft changed its strategy to achieving reduced costs and increased profitability. Additionally, the company insisted on owning the design of critical components, such as the microprocessor and the graphics chip, in order to “control its own destiny”. Therefore, the supply chain network needed to be redesigned in order to support Microsoft’s strategic shift. So as to reach the desired cost

* Quality of graphics and the power of processors has lost its importance Wii more successful than PS3 despite its underpowered processor and comparatively basic graphics

Nintendo however is not present in this new market and therefore it is very important to take in consideration to enter this new area because at the moment the company does not have products that satisfy those new needs resulting in the loose of sales and consequently revenues.

The main obstacle facing a start-up video game console company from entering the industry is saturation of the market from the larger video game console makers or the “big three” Nintendo, Microsoft, and Sony. The big three tend to release new game consoles around the same time frame and compete head to head for sales. During the time frame it is impossible for a new entry to jump into the fray. 2010 was a banner year for video console sales Sony’s PS3 sold 14 million units followed by Microsoft’s Xbox 360 13 million and surprisingly Nintendo’s Wii led the big three selling 17 million units. After the 2010 release of all three consoles sales started to decline for each company. Nintendo took the largest sales loss at 72% in 2013 only 747,000 were sold compared