Various forms of gaming:
A console game is a form of interactive
multimedia used for entertainment.
History - 1970’s
First Generation Games
Released in 1972
-Magnavox Odyssey is first game
-Poor marketing caused it to fail
Released in 1975
-First of several versions.
-Atari known as a pioneer in home
gaming for years to come
History - 1980’s
Third Generation Games
Nintendo Entertainment System
Released in 1985
-Criticized for unreliability.
-Product recalled and repaired.
-Popularity takes off.
Sega Master System (SMS)
Released in 1986
-released to compete with NES.
-Technologically better than Nintendo,
but games less popular.
-Technology for SMS made portable and
used for Sega Game Gear
History - 1990’s
Fourth Generation Games
Sega Master System II, Panasonic
Fifth Generation Games
Sega Saturn, Sony Playstation,
Sixth Generation Games
Nintendo Game Cube, Sony
Microsoft joins console
competition with Xbox.
Marks the entrance of the last
of today’s major competitors.
Currently 3 major console
Nintendo Wii (2006)
Sony PS3 (2006)
Microsoft Xbox 360 (2005)
Seventh Generation Games
Flight Stimulation games
Global Industry – Major Markets
revenue is around
$ 29 billion
US sales of Consoles &
Hardware $4.6 billion
Games $6.5 billion
Worldwide sales of
hardware & software: 2007
Projected for 2011 - $44
• Sony leads industry with
48% market share.
• Expected to stay the same
for next few years.
• Nintendo & Microsoft will
remain major competitors.
•Other players: Sega, Atari,
Konami, Viacom, Namco ,
CONSOLE GAMING – MARKET
Consumers Traditionally men
By end of 2007,
More than 2/3 of men 18-34 had
access to console in their homes.
80% of boys 12-17 had access.
Women only 10% of video game
players as of June, 2007.
Consumers Beginning to diversify.
Consoles in 46 million homes in US.
148 million adults have access to a console.
More than 1/3 of all adults online have game
Average user plays for 2 hours, 15 minutes per
Providing game development services and selling
original gaming content in India and worldwide
Indian companies: Dhruva Interactive, Indiagames ,
Milestone Interactive, Paradox Studios
Approximate size of industry: estimated at Rs 400 crores
Qualified and quality manpower.
In 2 years the industry will need 5000 people, maybe more.
The Animation industry will need another 5000 people
Changing mindsets towards on entertainment
over 550 million Indians are below 25 years of age, 200
+ million middle class
Cheap broadband will spur PC penetration –Broadband
Mobile will spearhead the introduction of games to the
Indian mass market
Cyber cafes and Broadband enabled games for PC.
Consoles are ultimate in interactive entertainment.
Budgets can rival Hollywood productions.
Large number of customers from various age groups.
Brand Loyalty critical.
Piracy losses amounts to billions of dollars annually.
Devices & performance standards often obsolete within
Must always release bigger & better to stay ahead of the
Penetration into the casual gamers market is crucial
to sustain and promote future growth
Projected Growth around 44% till 2011
R&D in gaming console technology
Competition from mobile gaming, PC gaming and
Increase in online gaming
Increase in outdoor activities/sport of children
Cultural and social impacts
Viral marketing encompassing high-profile keynote
speeches and a star-studded MTV special.
Targeted segment is hard-core male gamers.
Targeting on women who live with male gamers by
incorporating multimedia features.
Selling more consoles creates more developer interest,
which encourages more demand for consoles and creates
licensing revenue for Microsoft.
Marketing through MySpace and Bebo, websites blogs,
and by email.
Targeting potential buyers who are not just hardcore
games enthusiasts but anyone interested in the arts,
culture digital media and content creation.
Opened a branded venue in London's East End called
Used independent content and distribution partners.
Marketed PS as an enabler and a platform for creative
Marketing Strategies- Nintendo
Sell the idea that its game controls are more natural
and it can exercise your mind and help to improve
Targeted non core gamers(casual gamers) such as
professional, party gamers, families and active adults.
Blue ocean strategy: A strong value innovation for
(many new) customers (i.e. motion stick)
Cost reduction by eliminating features (i.e. no HD, no
DVD, no Dolby 5.1, low processor speed)
Supporters of gaming
Critics of Game Content
Next generation technologies.
9GB DVD and using a red laser to read
HD DVD can contain about 15GB of data with a
theoretical limit of 30GB
Blu-ray disk can contain 50GB with a theoretical
limit of 200GB using 8 layers on a single disc
3D engine to create smooth animated graphics