1. What key factors determine the success for video game console producers? The various factors that are likely to influence the success of the video game console producers include: 1. Product quality: Many buyers in the video game market carefully analyze video game consoles; they do so to look for defaults and make comparison of materials used in the manufacturing of a particular video game. The most important point to note here is that what matters to majority of the consumers is the quality of the product. Quality is the key determinant of whether a video game console producer will succeed.
The cheaper the video game console the lesser the demand, thus affecting the success of a producer. 2. Video game console producer must produce games that are appealing; they must be attractive to win the attention of the target consumer. The producers who have likable products are likely to attract more and more consumers, therefore, increasing the success probability of success to that particular video game console producer. 3. The success of a video game console producers also depends on the consumer’s age and gender.
Marketing strategies that producers use must be directed towards boys as they are the one who get interested too much in playstations and other video games. Therefore, marketing strategies is a crucial determinant of success. 4. Fredrick, Agnes and John (2005), asserts that technology is advancing at a high rate; there is need for video game console producers to advance with technology. Many consumers prefer modern and up to date products. For a producer to succeed the video game consoles must be competitive and technologically advanced to fit in today’s market.
For example manufactures of 3D and HD video games which are the latest generation of games stand a high chance of winning the video game market. 2. What does your strategic group map of the video game industry (all segments) look like? Which strategic groups do you think are in the best positions? The worst positions? Strategic group map of the video game industry Three market segments exist in the video game industry; they include the game consoles, consoles that are hand held and wireless devices. These segments have varying characteristics though they have a major contribution in the market and contribute too much in the video game competition.
Handheld Consoles This are basically mobile devices used for mobile gaming; Nintendo’s hand held devices has for a long time dominated in this market segment. A good example of hand held device includes: Nokia N-Gage mobile version released in 2003, the Play Station Portable Slim from Sony which entered the market in 2008 and the Nintendo’s DSi-XL. The market has become too competitive leading to release of even more complicated and advance mobile video games.
Much of these mobile video games are in the sixth generation an indication of how the video game market is growing. Game Consoles A video game console is a synergistic entertainment improved system of a computer or the computer itself; it creates video signals to be used with exposing device such as a television or a monitor to enable video game display. Nintendo, Sony and Microsoft are the key players in the video game console markets today. A good example includes the X-Box 360 from Microsoft, the Wii from Nintendo and Sony’s Play Station 3.
These three key players directly compete with each other. Sony has shown to advance in technology more than the rest, whereby, it competes with Microsoft in teens and adult games. On the other hand Nintendo encounters less competition as it is mainly involved in production of games for younger group.