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ENVIRONMENTAL SCANNINGA Marketing Analysis of the
Video Game Industry
David Marchenko
ENVIRONMENTAL SCANNING
“Collecting external marketing environment information to identify and interpret potential trends”
“Trends may represent significant opportunities or threats to the company”
“WHY VIDEO GAMES ARE SO EXPENSIVE TO DEVELOP”
The Economist
September 25th, 2014
“With smaller budgets, and less design by committee, indie games companies
are where much of the industry's innovation is taking place. Many make a virtue
of their lo-fi graphics (the blocky visuals of Minecraft being the most famous
example). Mobile games, played in short bursts on tiny screens with limited
interfaces, don't need big budgets either. But it is still the big-budget games that
rake in the cash. Grand Theft Auto V earned around $800 million on its first
day – three times what it cost to make. And with the latest games consoles
capable of rendering even more detailed graphics, expect budgets to keep
climbing.”
THE VIDEOGAME INDUSTRY BEFORE SMARTPHONES
• Videogame Industry = 3 Tiers
• Primarily Dominated by Home
Consoles and Handheld
Consoles
• Mobile Gaming = small
THE VIDEOGAME INDUSTRY BEFORE SMARTPHONES
Price
Quality
• Tier 1 – Home Consoles
• PlayStation, XBOX, Wii, PC
• Tier 2 – Handheld Consoles
• DS, PSP
• Tier 3 – Mobile Gaming
• Cell Phones, Flash Games
THE VIDEOGAME INDUSTRY AFTER SMARTPHONES
• Videogame Industry still 3 Tiers
• Nintendo and Sony failed in
Scanning Technological,
Sociocultural, and Economic Trends
• Handheld Gaming Declining
• Mobile Gaming Growing Rapidly
• Convenient
• Cheap Games
• Satisfactory Quality
THE VIDEOGAME INDUSTRY AFTER SMARTPHONES
Price
Quality
• Tier 1 – Home Consoles
• PlayStation, XBOX, Wii U,
PC Games
• Tier 2 – Handheld Consoles
• 3DS, PS Vita Games
• Tier 3 – Mobile Gaming
• Smartphone Apps
THE VIDEOGAME INDUSTRY TODAY
• Videogame Industry = 4 Tiers
• Handheld Gaming all but
dead
• Steady Growth in Home
Consoles with new Tech
• Mobile Gaming = Slow
Growth
• Nintendo = proactive
• Hybrid Gaming w/
Nintendo Switch, creating
new tier
THE VIDEOGAME INDUSTRY TODAY
• Tier 1 – Home Consoles
• PlayStation, XBOX, PC
• Tier 2 – Hybrid Consoles
• Nintendo Switch
• Tier 3 – Handheld Consoles
• 3DS
• Tier 4 – Mobile Gaming
• Smart Devices, Indie
Games
Price
Quality
ANALYSIS
• Nintendo and Sony Failures
• Socio-Cultural
• Economic
• Technological
• Downfall of Handheld Games
• Nintendo Success
• Socio-Cultural
• Competitive
• Rise of Hybrid Games
SOURCES
https://www.gamereactor.eu/articles/374623/The+Triple-I+Revolution/
https://www.economist.com/blogs/economist-explains/2014/09/economist-explains-15
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