Essay Title: 

The video game industry and the future of console gaming

March 22, 2016 | Author: | Posted in investment, mathematics and economics

The video game industry and the future of console gaming (Simple formatting has been done as different Universities have different requirements , this may kindly be reviewed accordingly . All references are as per Harvard formatting , as was given in your proposal as well . thanks

Chapter 1 – Introduction

Entertainment is emerging as a distinct business form the World over Electronic entertainment is a niche segment which is of particular significance given the growth of computers and the internet . Vogel (2001 ) has highlighted the growth of the American entertainment industry which has emerged as one [banner_entry_middle]

of the largest business sectors and is also attaining a similar status of significance globally . While electronic entertainment comprises of a number of segments such as movies television and cable programs , music , videos and broadcasting , video games are a significant segment of this vast industry (Vogel , 2001 The video games industry made a noticeable impact in 1972 when it emerged as a mass-market , with the introduction of the cooperated video game named `Pong ‘ and the console `Magnavox Odyssey ‘ which proved a huge success in the game industry (Adam , 2003 ) According to Informa Media group (2005 ) the game industry is growing every year . In 2004 the game industry took in 31 .4 billion worldwide . The video games industry includes PC games , mobile phone games , set-top box games , arcade games and video game consoles . It is expected to grow 71 percent from 49 .9 billion in 2001 to 85 .7 billion in 2006 . Video game console has the largest share in the game industry

Newman (2004 ) states that the video game industry is a young and profitable industry for example the Nintendo ‘s game Legend of Zelda had generated domestic gross revenues more than 100 million , even though the cost of production had been a mere 6 million for each game . Though this is an impressive ratio of revenue to cost , it can be seen as risky business as well , in terms of development which can take around two years or more to produce a game and poor rate of assurance of success during the time of production . The video game industry is oligopoly ‘s competition business and it ‘s changing over time (Besanko et al , 2000 The market leader is Sony which sold 60 million units of PlayStation 2 compared with 15 million units sold of Nintendo Gamecube and Microsoft Xbox . The Consoles have their strengths and weaknesses differently moreover the major difference among the platforms is the quantity and quality of available games . In to be the leader in the video game industry , it should be able to offer a large number of unique , high quality video games as the strength of these complementary products will be a critical success factor for the console (Friedman , 2002 . This in turn is driven by the developer who is provided creative inputs by the gamer

There is a symbiotic relationship in console gaming between the console developers and the consumers or gamers . Being an interactive , on going developing product… [banner_entry_footer]

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