ECO/365 Playing for Keeps: A Current Market Conditions Competitive Analysis of the Video Game Industry
Analysis of competitive market conditions in the video game industry.
Lily Edwards
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Playing For Keeps
Team D
1
Playing for Keeps:
A Current Market Conditions Competitive Analysis of the Video Game Industry
ECO/365
In your analysis of the video game industry, you discussed various factors affecting demand,
competition, and costs, with a particular focus on entering the market with a military strategy
game. Based on your findings, how would you assess the potential success of your company’s
strategy to target both the military and civilian markets? Consider factors such as consumer
demand, competition (specifically with companies like Activision), technological advancements,
and the impact of fixed and variable costs on profitability. Additionally, how do you think the
pricing strategy will influence the game's success in these two markets?
Word Count Requirement: 600-700 words
Team D
1
Playing for Keeps:
A Current Market Conditions Competitive Analysis of the Video Game Industry
ECO/365
In your analysis of the video game industry, you discussed various factors affecting demand,
competition, and costs, with a particular focus on entering the market with a military strategy
game. Based on your findings, how would you assess the potential success of your company’s
strategy to target both the military and civilian markets? Consider factors such as consumer
demand, competition (specifically with companies like Activision), technological advancements,
and the impact of fixed and variable costs on profitability. Additionally, how do you think the
pricing strategy will influence the game's success in these two markets?
Word Count Requirement: 600-700 words
Playing For Keeps
Team D
2
Playing for Keeps
Moving into new markets is a risky business even for a large corporation. To ensure that
the right moves are made and product success is ensured a current evaluation of the proposed
market and product is needed. Since there is continued our exploration of the video game
industry this company plans on developing a new game to break into the market. There needs to
be a better understanding of the top competitor this company will be in competition with, and
this competitor is Activision. Activisionwas incorporated in 1979 and is a worldwide publisher
of video games for both computers as well as personal gaming consoles such as PlayStation and
the Xbox (“Reuters”, 2013). Their products include first person perspective shooting games as
well as fighting and strategy games for all ages. Their games are distributed worldwide and bring
in billions in revenue each year. However, many of their revenue are gathered through only a few
games such as World of Warcraft which accounted for 90% of their revenue for 2011(“Reuters”,
2013). Knowing that they have a narrow hold with only a few games really accounting for their
income, this company can target other areas of the gaming industry such as military strategic
games.
The market for our intended customer base is one that is continually growing both with
individual gamers as well other industries like the military. The average age of a gamer is 34
years of age and over 67% of households play video games (“ESRB”, 2013). That means that we
have potential customers in over 67 % of household in the United States. This shows that these
products are in demand with both individuals and as our research has seen popularity in the
military homes as well. Considering that our new product will be that of a military strategy game
we also have a potential customer in the United States Army. The Army has started using video
Team D
2
Playing for Keeps
Moving into new markets is a risky business even for a large corporation. To ensure that
the right moves are made and product success is ensured a current evaluation of the proposed
market and product is needed. Since there is continued our exploration of the video game
industry this company plans on developing a new game to break into the market. There needs to
be a better understanding of the top competitor this company will be in competition with, and
this competitor is Activision. Activisionwas incorporated in 1979 and is a worldwide publisher
of video games for both computers as well as personal gaming consoles such as PlayStation and
the Xbox (“Reuters”, 2013). Their products include first person perspective shooting games as
well as fighting and strategy games for all ages. Their games are distributed worldwide and bring
in billions in revenue each year. However, many of their revenue are gathered through only a few
games such as World of Warcraft which accounted for 90% of their revenue for 2011(“Reuters”,
2013). Knowing that they have a narrow hold with only a few games really accounting for their
income, this company can target other areas of the gaming industry such as military strategic
games.
The market for our intended customer base is one that is continually growing both with
individual gamers as well other industries like the military. The average age of a gamer is 34
years of age and over 67% of households play video games (“ESRB”, 2013). That means that we
have potential customers in over 67 % of household in the United States. This shows that these
products are in demand with both individuals and as our research has seen popularity in the
military homes as well. Considering that our new product will be that of a military strategy game
we also have a potential customer in the United States Army. The Army has started using video
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Document Details
University
University of Phoenix
Subject
Economics