The video game industry has four major players which are all more or less interrelated. They are the following: - The manufacturers of video consoles: the leaders of this market are Sony, Nintendo and Microsoft. The undisputed leader in the segment is the Japanese brand Sony.
Microsoft is an American firm, which has recently come into the market with a new generation console, the Xbox, to compete with the giant, Sony. Nintendo is another Japanese firm, which is one of the pioneers with Sega as a console manufacturer. The games and the quality associated with them are inherent to the success of a console, which is why console manufacturers work closely with another player of the video-game industry, namely, the creators of video games.
The creators of video games are often represented by small, very flexible and therefore very innovative organizations. After designing the video games, they must sell their ideas through good marketing. To this end, they use another actor on the market: - The publishers.
The publishers therefore deal with the manufacture, advertising and financing of video games. Thus, they have the role of producer and are represented by very large structures such as Gameloft which are listed on Euronext.
To optimize the use and develop the game at the same time, another segment, ‘consoles and video games' require essential accessories. These accessories are produced by another actor who works closely with both the creators of consoles who manufacture video games, manufacturers of electronic components or devices. These manufacturers equip the consoles to ensure the smooth functioning of video games.
Nintendo has always been positioned for the youth segment, generally less than 20 years, more fun with a purpose. A change of position was made in the early 2000s with a diversification into all ages and more diversified products (products that are more educational, instructional).
As for Sony, its positioning is especially teenagers and young adults (15-25 years) in a purely playful sense. The audience has a strong tendency to appreciate the innovative and new technologies in general.
Finally, Microsoft is positioning to compete with Sony this year. Indeed, they have addressed the same audience and managed to capture the most sensitive to new console technology, inherent power, graphics, etc. Microsoft represents a major competitor for the leader Sony.
Tags: video games sector, players in the video games sector, Sony's leadership in the video games sector
[...] So there is no struggle between the two actors in the same market but rather a complementary one due to their difference in strategy. The PSP is a type of incremental innovation for two reasons: - Sony did not invent a new product since the handheld technology already existed, but rather sought to develop the potential of the console by introducing new uses. - Sony did not invent new technology, but diversified already existing technology in other media in order to make the handheld a true multimedia tool. [...]
[...] It will ensure that the company's console is ahead of its competitors, for example, by adapting existing devices on the console to offer new opportunities and uses for the console. In addition, it is important to establish a constant monitoring of the market, both in terms of consumer expectations and the development of competition. Finally, Sony will still have to maintain more relationships with partners (developers, publishers, movie studios . This will allow it to come out with many games and to impose its standards (Standard for UMD movies). [...]
[...] The innovation strategy is based around Sony's key success factors that the company has identified on this market: - Technological innovation: integrating multimedia tools to develop the potential of the console: play music, watch movies and access internet through the WiFi network. In addition, USB compatibility enables simple data transfer. These innovations will be even easier to implement as Sony is now a specialist in electronics and video games. The firm will therefore rely on its expertise. As for the PS Sony has indeed become the leader in technological innovation. [...]
[...] Each new console launched by the Japanese producer has been successful. The various innovations of Nintendo consoles have been incremental between Nintendo and Nintendo 64. Secure with its monopoly over the market, Nintendo was content with just small innovations. The performance of the machines has changed (number of "bits" doubled between each new console) but the format of the game consoles remained associated with the cartridge.The same could be said for the handheld, the evolution between the Game Boy and Game Boy Advance was incremental. [...]
[...] ) in the race for the convergence of different technological worlds. To maintain its market position, Microsoft should continue to play its economic weight and lead a strategy of growth through the acquisition of publishers and developers that would enable acquisition of additional market share and adopt new technology faster without increasing the aggregate supply sector. In addition, Microsoft must continue to follow its goal of converging worlds of technology, to erase the boundaries between video games and computer in order to make these two worlds totally dependent, and thus occupy a leading position by its near monopoly on the world of computing Product example: The psp Innovation strategy of Sony The gaming division of Sony felt the need to be a major player on the handheld market for several reasons: - Attacked on the market for home consoles by Microsoft, Sony needs to diversify to continue its growth. [...]
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