Videogame Consoles Industry
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Videogame Consoles Industry






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Videogame Consoles Industry Videogame Consoles Industry Presentation Transcript

  • Videogame Consoles Industry
  • Market Share in the Videogame Industry 67% Sony Playstation Nintendo GameCube 15% Microsoft Xbox Others 15% 3%
  • 1980s Family Computer (Famicom) was introduced in Japan in 1983 Nintendo Entertainment System (NES) was introduced to the US market in mid-1980s Nintendo has captured about 80% of the market share in North America with NES
  • Nintendo Family Computer (Famicom)
  • Nintendo Entertainment System (NES)
  • 1980s Nintendo has introduced its first portable game console known as GameBoy in 1989 Nintendo has become the leader with first-mover advantages in handheld market
  • GameBoy
  • 1990s Nintendo has introduced Super Nintendo Entertainment System (SNES) in 1991 Sony and Nintendo has entered into a contract to develop the Super Disc in 1988 Nintendo is unable to release the Super Disc due to contractual and licensing problem Sony has the modified version of the Super Disc and is introduced in 1991
  • Super Nintendo Entertainment System (SNES)
  • 1990s Sony Computer Entertainment Inc. has been established as a R&D division in 1993 Sony Computer Entertainment America Inc. has been established in May of 1994 Sony has introduced Playstation (PS1) in December of 1994 in Japan
  • Playstation (PS1)
  • 1990s PS1 is introduced as a game console that is able to support the use of CD-Rom based games PS1 is introduced in America and Europe in September of 1995
  • Business Strategies First mover advantage New technology Switching cost Lock in Worldwide marketing Barrier to potential entrants
  • 1990s Nintendo has introduced Nintendo64 in 1996 in response to the introduction of Playstation Nintendo64 has become a failure due to the poor digital animation and audio quality of its game cartridges
  • Business strategies network effect high switching cost lock in
  • Nintendo64
  • GameBoy Color Nintendo has focused on the handheld market instead and has introduced GameBoy Color in late 1990s Business strategies: Network effect Backward compatibility
  • Game Boy color
  • 2000s Sony has introduced PS2 in March of 2000 Sony has penetrated the game console market and has become the market leader Sony has constantly gain control over the market while Nintendo has continued to lose its market share
  • Playstation 2 (PS2)
  • Business Strategy: Second degree price discrimination (Versioning) Backward compatibility Product differentiation
  • Xbox
  • 2000s First Video Game Console from Microsoft Xbox was launched in November of 2001 Xbox was designed to be a console with online capability
  • Features An NVIDIA graphics processing unit (GPU) An Intel 733MHz processor An internal hard drive An Ethernet port
  • Xbox Live Play Xbox games online over the Internet with a high-speed connection Communication in real time during games and set up chat with yours friends Download new stuff for your favorite games—new maps, missions, songs, skins, vehicles, characters, and quests
  • Business Strategy: Designed for online game Superior system
  • 2000s Nintendo has introduced GameCube in 2001 as a sign of returning to the game console market GameCube is a game console that is used to support its own proprietary CD format of games
  • GameCube
  • 2000s Nintendo has introduced a hardware device known as GameBoy Player which supports backward compatibility of all the previous Nintendo game cartridges Business strategies: Network effect Switching cost Lock in
  • GameBoy Player
  • 2000s Nintendo has introduced Nintendo Dual Screen (Nintendo DS) in 2004 Nintendo DS is a portable game console that is not compatible with the previous GameBoy series game cartridges
  • Nintendo Dual Screen (Nintendo DS)
  • Pepsi Edition (Japan)
  • New Nintendo DS colors
  • 2000s Sony has introduced its first portable game console known as Playstation Portable (PSP) in March of 2005 PSP has varies entertainment features include MP3, MPEG movie player, and wireless communication
  • PSP (PlayStation Portable)
  • Conclusion Each company uses different business strategy to approach the market Sony is the winner (67% of market share) Intensified compeition with the proposed introduction of PlayStation 3, Xbox 2, Revolution, as well as the future generation of handheld gaming device.