Video Game Consoles

This chapter introduces the main market trends of the video game sector and analyzes the mutations of this industry. Video game sector is characterized by very high network externalities, a lock-in phenomenon, and the increasing technological complexity of consoles, which are also subject to cycles, a structural increase in game development costs, and the predominance of strategic marketing. Since the beginning of the century, this industry has witnessed major developments: the arrival of Microsoft in 2001 onto the game console segment, a growing interest of game publishers in other platforms, the dramatic growth of new platforms (mobile terminals), and the rapid development of online and downloadable games. In addition, this chapter addresses some of the most important issues in the field of strategic management: value chains and business models. These concepts are applied to the video game industry in the context of competitive intensity and modification of market structures.

Gamification ◽  
2015 ◽  
pp. 883-907
Author(s):  
Nabyla Daidj

This chapter introduces the main market trends of the video game sector and analyzes the mutations of this industry. Video game sector is characterized by very high network externalities, a lock-in phenomenon, and the increasing technological complexity of consoles, which are also subject to cycles, a structural increase in game development costs, and the predominance of strategic marketing. Since the beginning of the century, this industry has witnessed major developments: the arrival of Microsoft in 2001 onto the game console segment, a growing interest of game publishers in other platforms, the dramatic growth of new platforms (mobile terminals), and the rapid development of online and downloadable games. In addition, this chapter addresses some of the most important issues in the field of strategic management: value chains and business models. These concepts are applied to the video game industry in the context of competitive intensity and modification of market structures.


2020 ◽  
Vol 214 ◽  
pp. 02015
Author(s):  
Jiahao Zhang

In recent years, increasingly advanced technology infrastructure leads to an extraordinary growth of Internet users. By virtue of the explosive growth of the entire Internet industry, the online game industry has shown a rapid development trend, and the overall user scale of online games continues to expand. Meanwhile, the online game industry becomes a good investment market for investors to operate in. This article uses Blizzard as an example to analyze its investment value. Besides, the future trend of the video game industry is analyzed by using the SWOT-model and forecasting calculation data. The result shows that based on the current development of the game industry environment and the same companies in the game industry, Activision Blizzard will have a steady increase in profits in the future. Therefore, it is worth being invested.


Author(s):  
Mosarrat Farhana ◽  
◽  
Daniel Swietlicki ◽  

The purpose of this study is to extend the understanding of the business model of video game retailers using online and physical stores. It focuses on the impact of digitalization on the retailing industry considering different actors like retailers and consumers. This is a qualitative multiple-case study based on deductive reasoning. Two cases of click-and-mortar retailers operating in the Swedish video game industry have been considered along with feedback from customers. Online personal interviews and semi-structured interviews have been conducted with retailers and customers respectively. Both primary and secondary data have been used. Findings show that video game retailers need to encourage engagement through incentives and other activities to create value and change up their formats and sales strategies through pricing to reach new customers and focus on design of their online store fronts to convey trustworthiness. It offers some insightful practical suggestions to retailers who are struggling hard to adopt digital transformations in the industry. Authors’ proposed research model, based on Sorescu et al. (2011)’s retail business model and the empirical findings, contributes in the less explored domain of research on business models from retailer’s perspectives. Moreover, it adds values in industry specific study like the video game industry in Sweden considering all actors, which is argued as scarce.


2020 ◽  
pp. 37-55 ◽  
Author(s):  
A. E. Shastitko ◽  
O. A. Markova

Digital transformation has led to changes in business models of traditional players in the existing markets. What is more, new entrants and new markets appeared, in particular platforms and multisided markets. The emergence and rapid development of platforms are caused primarily by the existence of so called indirect network externalities. Regarding to this, a question arises of whether the existing instruments of competition law enforcement and market analysis are still relevant when analyzing markets with digital platforms? This paper aims at discussing advantages and disadvantages of using various tools to define markets with platforms. In particular, we define the features of the SSNIP test when being applyed to markets with platforms. Furthermore, we analyze adjustment in tests for platform market definition in terms of possible type I and type II errors. All in all, it turns out that to reduce the likelihood of type I and type II errors while applying market definition technique to markets with platforms one should consider the type of platform analyzed: transaction platforms without pass-through and non-transaction matching platforms should be tackled as players in a multisided market, whereas non-transaction platforms should be analyzed as players in several interrelated markets. However, if the platform is allowed to adjust prices, there emerges additional challenge that the regulator and companies may manipulate the results of SSNIP test by applying different models of competition.


2018 ◽  
Vol 4 (2) ◽  
pp. 133-155
Author(s):  
Yongjin Oh ◽  
Seungchul Lee ◽  
Jaewon Lee

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