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Explain the competition among your major rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entrants, and threat of substitutes. Hint: you can use SWOT to get insight of these forces if necessary.

Explain the competition among your major rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entrants, and threat of substitutes. Hint: you can use SWOT to get insight of these forces if necessary.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Explain the competition among your major rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entrants, and threat of substitutes. Hint: you can use SWOT to get insight of these forces if necessary.
Transcribed Image Text:Explain the competition among your major rivalry, bargaining power of buyers, bargaining power of suppliers, threat of new entrants, and threat of substitutes. Hint: you can use SWOT to get insight of these forces if necessary.
Recently, the Global Games Market Report was released to explore the market trends shaping and driving the landscape of the game, and further zoom in on the latest developments per segment and region for the upcoming year and beyond. The report indicates that the way consumers engage with and through games is constantly changing that leads to entirely new segments of game enthusiasts. There are now more than 2.5 billion gamers across the world. Combined, they would spend $152.1 billion on games in 2019, representing an increase of +9.6% year on year. According to the newest report, the U.S. has overtaken China as the world's largest gaming market by revenues. Overall, the U.S. games market would generate $36.9 billion in 2019, predominantly driven by its +13.9% growth in console game revenues. Among top 10 video game publishers by game revenues, major US companies are Sony, Apple, Microsoft, Nintendo, Google, Activision Publishing (AP), and Electronic Arts (EA). Video games are played on various platforms of smartphone, console, boxed, tablet and browser. Console will be the fastest-growing segment this year, growing +13.4% year on year to $47.9 billion in 2019. If we break that prediction down by platform, the largest segment, 36%, will be generated by smartphone games, while the smallest segment of the market, 2%, will go to Browser PC Games. The prediction is that browser-based games will continue to lose market share over the next few years. The total market share has console games accounting for 32% of the revenue and will actually grow faster than smartphone games in the coming years. Regardless of this increased growth console games will not overtake smartphone games any time soon. So, what does this all mean for the future of gaming publishers in the US market? Smartphone game development will continue to be explosive. With this much potential behind it, every game developer will be looking for an investment in the next big game. Also, you can probably look forward to critical improvements of gaming platforms that can blow your minds in the next year or two. In addition, you can expect a new generation of gamers from millennials to Z fairly soon and that might be for a big change. As the CEO of a gaming publisher, you are supposed to perform a five forces analysis of the online video game industry. Use search engine or other information sources to answer the following questions.
Transcribed Image Text:Recently, the Global Games Market Report was released to explore the market trends shaping and driving the landscape of the game, and further zoom in on the latest developments per segment and region for the upcoming year and beyond. The report indicates that the way consumers engage with and through games is constantly changing that leads to entirely new segments of game enthusiasts. There are now more than 2.5 billion gamers across the world. Combined, they would spend $152.1 billion on games in 2019, representing an increase of +9.6% year on year. According to the newest report, the U.S. has overtaken China as the world's largest gaming market by revenues. Overall, the U.S. games market would generate $36.9 billion in 2019, predominantly driven by its +13.9% growth in console game revenues. Among top 10 video game publishers by game revenues, major US companies are Sony, Apple, Microsoft, Nintendo, Google, Activision Publishing (AP), and Electronic Arts (EA). Video games are played on various platforms of smartphone, console, boxed, tablet and browser. Console will be the fastest-growing segment this year, growing +13.4% year on year to $47.9 billion in 2019. If we break that prediction down by platform, the largest segment, 36%, will be generated by smartphone games, while the smallest segment of the market, 2%, will go to Browser PC Games. The prediction is that browser-based games will continue to lose market share over the next few years. The total market share has console games accounting for 32% of the revenue and will actually grow faster than smartphone games in the coming years. Regardless of this increased growth console games will not overtake smartphone games any time soon. So, what does this all mean for the future of gaming publishers in the US market? Smartphone game development will continue to be explosive. With this much potential behind it, every game developer will be looking for an investment in the next big game. Also, you can probably look forward to critical improvements of gaming platforms that can blow your minds in the next year or two. In addition, you can expect a new generation of gamers from millennials to Z fairly soon and that might be for a big change. As the CEO of a gaming publisher, you are supposed to perform a five forces analysis of the online video game industry. Use search engine or other information sources to answer the following questions.
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