Video Games Industry Overview

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Video Games Industry Overview

  1. 1. The Games Industry
  2. 2. <ul><li>Console Manufacturers </li></ul><ul><li>Publishing Houses </li></ul><ul><li>Software Developers </li></ul>The Games Industry
  3. 3. <ul><li>FIRST PARTY GAMES - produced by console manufacturers directly, e.g. Mario produced by Nintendo </li></ul><ul><li>SECOND PARTY GAMES - developed by studios funded by console manufacturers, e.g. Project Gotham by Bizarre Studios </li></ul><ul><li>THIRD PARTY GAMES - produced by publishing houses and developers independent of console manufacturers, e.g. Tomb Raider by Eidos </li></ul>Who makes videogames?
  4. 4. <ul><li>Set up in 1889 as a manufacturer of playing-cards </li></ul><ul><li>Began developing Arcade games in the 1970s </li></ul><ul><li>In the 1980s produced the Game & Watch </li></ul><ul><li>Massive success with Nintendo Entertainment System (NES) in 1985 </li></ul><ul><li>Consolidated position with GameBoy </li></ul>Nintendo
  5. 5. <ul><li>Home-electronics giant (TVs, Walkman) </li></ul><ul><li>Collaborated with Nintendo on use of CD-ROMs in games consoles </li></ul><ul><li>Developed PlayStation after falling out with Nintendo. </li></ul><ul><li>PlayStation phenomenon sold over 100million consoles worldwide </li></ul><ul><li>Made gaming “cool” </li></ul>Sony
  6. 6. <ul><li>PC software giants </li></ul><ul><li>Threatened by Sony’s dominance of the games market in the late 1990s </li></ul><ul><li>Determined to enter console market with Xbox in 2002 </li></ul><ul><li>Led the way with online-gaming </li></ul><ul><li>Fully established industry player with the release of the 360 </li></ul>Microsoft
  7. 7. Wii Tennis
  8. 8. <ul><li>Fresh and new motion sensing control system </li></ul><ul><li>Good value </li></ul><ul><li>Accessible to all </li></ul><ul><li>Fantastic first party product - Mario, Zelda </li></ul><ul><li>Easy and interesting to develop for </li></ul>Wii Strengths
  9. 9. <ul><li>Graphically inferior </li></ul><ul><li>Might put off existing market used to certain controls and game types </li></ul><ul><li>Not a multimedia machine </li></ul><ul><li>It’s called the Wii </li></ul>Wii Weaknesses
  10. 10. Halo 3
  11. 11. <ul><li>Uses powerful technology </li></ul><ul><li>Traditional control and game types </li></ul><ul><li>Good third party support </li></ul><ul><li>Relatively easy to develop for </li></ul><ul><li>Great online service </li></ul><ul><li>Multimedia machine </li></ul>360 Strengths
  12. 12. <ul><li>Doesn’t appeal to new consumers </li></ul><ul><li>Development can be expensive </li></ul><ul><li>Online experience can intimidate </li></ul><ul><li>Need HD TV </li></ul><ul><li>Often needs replacing </li></ul>360 Weaknesses
  13. 13. <ul><li>Potentially the most powerful </li></ul><ul><li>Amazing graphical capability </li></ul><ul><li>Multimedia machine - BluRay compatible </li></ul><ul><li>Improve online service </li></ul><ul><li>Good third party support </li></ul><ul><li>Attempt at market expansion - Singstar </li></ul>PS3 Strengths
  14. 14. <ul><li>Hard and expensive to develop for </li></ul><ul><li>Poor first party products </li></ul><ul><li>Expensive - needs HD TV </li></ul><ul><li>Relies on existing game types </li></ul><ul><li>Poor launch and marketing </li></ul>PS3 Weaknesses
  15. 15. <ul><li>Expand the market </li></ul><ul><li>Make it a social experience </li></ul><ul><li>Keep it cheap and good value </li></ul><ul><li>Continue to innovate </li></ul>Nintendo’s Strategy
  16. 16. Wii Fit
  17. 17. <ul><li>Make it high-end and an aspirational product </li></ul><ul><li>Multimedia machines </li></ul><ul><li>Target existing consumers with similar products </li></ul><ul><li>Push online gaming for added revenue </li></ul>Sony and Microsoft’s Strategy
  18. 18. <ul><li>Integrated Live play between hardware that supports Microsoft software </li></ul><ul><li>Create an online community for communication and gaming through Microsoft products. </li></ul><ul><li>Promote microtransactions </li></ul>Microsoft’s Live Strategy
  19. 19. <ul><li>Use hard-drive to record telly </li></ul><ul><li>Promote compatibility with PSP </li></ul><ul><li>Make the PS3 the centre of home entertainment </li></ul>Sony’s Multimedia Strategy
  20. 20. <ul><li>Capcom - Japanese publisher and developer </li></ul><ul><li>New, challenging and creative games such as Killer 7, Okami, No More Heroes - not always successful </li></ul><ul><li>Several key brands and series that drive the company - DMC, Resident Evil, MegaMan </li></ul><ul><li>Understand cultural difference when creating games </li></ul>Balancing Business

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