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    Leilani Gani
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    22 views11 pages

    Case Study 1 - Video Game Console Industry 2018

    Uploaded by

    Leilani Gani

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 11
    Case 13 Video Game Console Industry in 2018 In 2016, the video games consoles—dedlcated hardware devkes for playlag video searnes i the home—were in their eighth jgeration. Yet, ahhenh this generation had begun six years provicusly with the launch of the Niatcade Wii U Fllomed by Sony/s PlayStation 4 and Microsofts Nbox One, uncertaily semuiaed over the tutte Aiecton oF their ner and the strategies to purse “The firs six generations of conseles hed established a clear consensas as to key us cess faczors in thi industry. The strategies ofall the leading players were focused upon ‘stlishing mart lealensip thal seul then generate network ects i ining Suppo both fom users and game developers. To establish early markt leadeeshi, thekey wasto target exriy adopters "hander gamers who were primi rales aged Derween 12 and 35 However ihe convertional wisdom hid been upset by the outcome of elas ‘ound eF exmpestion, among sexenth-genterition consoks, he winner lel es Nin tendo, lis Wi as a technologically unsophisticated, easyeoruse console targeted at the canal user Irhad outsold the more technologically advanced machines from Sony land Mico. Morsaver, hike Sony snl Microsc had Faetned upon taering thet ‘consoles into awltfanctonal home enersiaaent deviecs, the Wit was a deskcated ‘ames console AL he sume thine, the Home vides) gate console was under trea, ten jaune plying was shifing to obi, mukifunctional devices, such 3s smaphones and tablet computes.* Noc only were he comole makers facing coupettion from dlicsnaive hardwate platonns, Hey were grappling wilh te cing power of vide Jeunes pubisiers. The inbilly of Ue console makers envorce resricuve leensing ‘conditions om the games pubiishers fad grey weakened the neswork effects that Thad caused consumers and developers 10 converge ward tbe market-leading console plafonn History of the Video Game Industry, 1972-2018 “The history ofthe video gume console compxised sees of product generations, exch lasing between five dnd seven yours and each define peimaaly by the power of the smisoprocessos Used by the consoles (igure 1) ‘FIOUME:L “Global sales OE veden gine note Wy prckithnctaton Chiles oF tt, atares9 saline) se(iatay) socom saliamona Teles WOLDS) ‘The First and Second Generations, 1972-85: The Atari Era "The heme video game murke emerged daring the 197s as an extension of and video games. The fist generation of home video consoles were dedicated 1 a single ome ‘The second generation of pleyens festored interchangeable caries Industry Ploncer Ata with # Air 26ND Unleashed 4 craze for video pamoe daven by Spee Tasers (release in 1979) nel Pesan ISS), Ata fled 10 protects proprsetry technology ancl was oxerwhelmesd by competion rom supplets of Atur-ecnmpautle ccomoles and 2 Dood of unauthorized gaunes fom independent software developers ‘The Third Generation, 1985-90: The Nintendo Era [Nimeado, the leadig Japanese supplier of acae video yantes, eleaed is Niatno Eaterainmeat Spat (NES) home ideo console estem ia Japan in 1983 and ovo yeas leter is the Unie! States. By 1988, Nevenlo held 9% dhe US market, due 1 hagely populae games sash as Donkey Kens, Lagerlof Zelda, anal Super Mario Brethere ee sed by ts legendary games daveloper,Shigen. Missa intends market domizance and huge profits ested upon is tight eantral aver the development, manufacture, and cstbuton of games. Cannas incempoated 4 Security chip that ensured tat only cutidges manufactured hy Nirtend could fe on Ine NES. Ninvenco charged game pusshers 2% royally and a manuacung le ot Sis per carnage The minions crder—10.000 carirdges for Ue faainese marke ard 50.000 forte US marker—had 10 be pad in advance. Any game developed forthe NES could not be released on a competing system for bwo yea, [By 1991, Niven sabes exceeded $44 Dillon, 4s tock mares value exceeded that ‘oF Sony, ad abou oneal OF US and Japanese housebeils evened an NES; ‘The Fourth Generation, 1991-95: Sega versus Nintendo Sega, lice Atat and Nintendo, began in arcade games. ln October LS 4 launcied is 162i Genesis home video sistem in Japan znd next year in the Lnted Stes. With the Inrocucsion of Somte she Hegebug i (891 and, wath song suppon rem independent jgames developers, sles of Genesis took off intend countered with fs 16 bi Super NES, in September 1991, Sega's bigger Lbxary of 16bit tiles (by 1993 i offeced 320 games, compared 10 130 fee Nintendo) allowed it to take a small ad in the Eucpean and US markers, honever, Nitendo ‘contiaued to dominate ia Japan ‘The Fifth Generation, 1995-98: Sony PlayStation ‘The launch of Sega’ 32>it Sutuen console & Noventber 1994, was quickly followed by Sony’ introduction OF PhayStatton camel the eeul of a ie year development

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