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Video Game Industry

Video Game Industry. Matthew Kucker Brian Lee Eric Dugan Femi Alao. Internet & Business Spring 2008 David Seabrook, SUNY Purchase. Size (Revenue). Worldwide revenue is $38 Billion U.S. estimated at 18 Billion $4 Billion from Online Gaming Future revenue $49 - $66 Billion

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Video Game Industry

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  1. Video Game Industry Matthew KuckerBrian LeeEric DuganFemi Alao Internet & Business Spring 2008 David Seabrook, SUNY Purchase

  2. Size (Revenue) • Worldwide revenue is $38 Billion • U.S. estimated at 18 Billion • $4 Billion from Online Gaming • Future revenue $49 - $66 Billion -Expected growth derived from the internet

  3. Trends (worldwide) • Growing Industry

  4. Industry Competitors Anyone IBM Google Barnes & Nobles Burger King Individual customers Console Manufacturers Wholesalers + Game engineers Software Programmers Video Game Plat formers Board Games Trading Cards TV Plug & Play Gambling

  5. ESRB Ratings (Entertainment Software Rating Board) • Early Childhood Interactive (3+) • Everyone (6+) • Everyone 10+ (10+) • Teen (13+) • Mature (17+) • Adults Only (18+) • Rating Pending

  6. Consoles: • Competing video game systems; • Sony Playstation 3 (PS3) • Nintendo Wii • Microsoft X-box 360 • Personal Computer • GameBoy / PSP

  7. Hardware Sales By NPD group

  8. Top 10 Games 4.8m - Halo 3 [Xbox 360] by Microsoft 4.1m - Wii Play [Wii] by Nintendo 3.0m - Call of Duty 4 [Xbox 360] by Activision 2.7m - Guitar Hero III [PS2] by Activision 2.5m - Super Mario Galaxy [Wii] by Nintendo 2.5m - Pokemon Diamond [DS] by Nintendo 1.9m - Madden NFL '08 [PS2] by Electronic Arts 1.9m - Guitar Hero 2 [PS2] by Activision 1.8m - Assassin's Creed [Xbox 360] by Ubisoft 1.8m - Mario Party 8 [Wii] by Nintendo By NPD group

  9. Competitive Strategy • Technology Advances • Target Consumers • Wii (Special Remote) • Guitar Hero • Specialization (Sports)

  10. Industry participants (structure) Vivendi Microsoft Nintendo Sony Activison Blizzard Entertainment EA Games ID Software inc. Sierra Valve Atari Rockstar Games LucasArts Entertainment Epic Megagames Bungie Studio Interplay Productions Konami THQ inc. Westwood Studios Eidos Interactive Namco Ubisoft Codemasters 3D Realms Entertainment Apogee Software Take 2 Interactive Midway Games Maxis BioWare Corp Bethesda Softworks NovaLogic, Inc Sports Interactive Raven Software Gainax Network Systems Square Enix Aspyr Media CDV Software JoWooD Productions Ambrosia Software Monolith Productions, Inc.

  11. Publicly Traded Companies € 25.95 = $40.58

  12. Business Model • Younger demographics are majority • Subscription fee’s, One time purchase • Internet  Cut costs  + Advertising  Another Stream of Revenue  Free Information (Online Network effect – Community) • Companies with different Business Models:

  13. Marketing Strategy • Media • Commercials • Product Combination • Sweepstakes/Contents • Product Placement • Internet • Billboards • In store Ads

  14. World Of Warcraft / Everquest Addiction News Story - Philly • Addiction • Never Ending • Guild Network • You Tube Video

  15. Online Competition • Candystand.com • Marketing • Free completion • Mini Golf • Candystand.com • Marketing • Free completion • Mini Golf Electronic Arts

  16. The Internet’s effect on Industry • Increased Online Marketing • Lowered production cost (for some companies) • Connected people • Created a new segment within the industry

  17. Future Developments By 2011  $48.9 Billion Now Online Game Downloading New Vs. Old Companies

  18. Final Thought • Video Game Fast Growing Industry Sponsored by: www.ElectronicHandhelds.com

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