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The Video Game The Video Game IndustryIndustry
The Players, Strategy, and The Players, Strategy, and FutureFuture
By: Kristian Peterson, Chris Orme, Gary Tonlinson, and Gwendolyn Rex
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The PlayersThe Players
Microsoft XboxMicrosoft Xbox
Sony Play Station IISony Play Station II
Nintendo Game Nintendo Game CubeCube
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MicrosoftMicrosoft
Strategy:
Internet gaming
Integrated home entertainment & computing
Technology leader
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AdvantagesAdvantages
Technological experience & reputationTechnological experience & reputation Plentiful financial resourcesPlentiful financial resources Use of new and current technologyUse of new and current technology
• Internet game capabilityInternet game capability• nForce graphics cardnForce graphics card• 10-gigabyte hard drive10-gigabyte hard drive
• Pentium III processorPentium III processor • DVD playerDVD player
Ability to wait out product growthAbility to wait out product growth
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BarriersBarriers
Internet connectivity problemsInternet connectivity problems No experience or reputation in the No experience or reputation in the
video game industryvideo game industry Small game selectionSmall game selection No established popular games or No established popular games or
characterscharacters Introduced after the other consoles Introduced after the other consoles
were already in the homes of were already in the homes of consumersconsumers
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SonySony
Strategy:
Maintain market share leadership
Have the best game selection
Provide leading technology capability
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AdvantagesAdvantages
Console introduced earlier than the Console introduced earlier than the competitioncompetition
Plays games from Play Station IPlays games from Play Station I Variety and popularity of gamesVariety and popularity of games Up to date technologyUp to date technology
• DVD play capabilityDVD play capability• Internet connectionInternet connection
ReputationReputation
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BarriersBarriers
Keeping up with the high technology Keeping up with the high technology of Microsoftof Microsoft
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NintendoNintendo
Strategy:
Dominate the younger audience
Strive to keep loyalty as buyers grow
Draw buyers through popular game characters and cheaper console
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AdvantagesAdvantages
A console that is $100 cheaper than A console that is $100 cheaper than the competitionthe competition
Popular game charactersPopular game characters More wholesome games (less More wholesome games (less
violence)violence) Console mobility and simplicityConsole mobility and simplicity ExperienceExperience
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BarriersBarriers
A console that lacks the technology A console that lacks the technology of the competitionof the competition
Later introduction than SonyLater introduction than Sony Viewed more for a younger audienceViewed more for a younger audience Not backward compatible with Not backward compatible with
Nintendo 64 gamesNintendo 64 games
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The video game industry will continue The video game industry will continue to grow and diversify in its audience. to grow and diversify in its audience. We forecast a split in the market. We forecast a split in the market. One part will be more focused on the One part will be more focused on the family and younger audience. The family and younger audience. The other part will be larger and draw other part will be larger and draw those who are more technical and those who are more technical and seeking the latest and greatest.seeking the latest and greatest.
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Sony will continue to keep up with Sony will continue to keep up with Microsoft in technology. In the long run, Microsoft in technology. In the long run, they may loose majority status, but their they may loose majority status, but their game selection will keep them the game selection will keep them the leader for some time.leader for some time.
Nintendo will dominate the younger Nintendo will dominate the younger audience and will try to make audience and will try to make improvements to keep loyalty as their improvements to keep loyalty as their customers grow.customers grow.
Microsoft will continue to be a leader and Microsoft will continue to be a leader and trendsetter technologically. Sony will be trendsetter technologically. Sony will be their major competition, but Microsoft will their major competition, but Microsoft will establish a large market share.establish a large market share.