Strategy Competitive Advantage Essay

Published: 2020-01-03 09:51:07
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Category: Strategy

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A detailed analysis of consumer characteristics, preferences and income spends will determine the interventions and structure of the growth and shape of the console gaming industry. (Beinisch. Paunov, 2005). The growth pattern will have to conform to all the three determinants for which a detailed survey and review will be necessary from time to time. The computer gaming industry has a highly distributed value chain which comprises of many components such as middleware software developers, game developers, retailers and so on.

However the key component of this industry is three which as discussed are the console, developers and gamers themselves. This relationship between the principal components will have to foster. To assuage the fear of social scientists and educationists certain developmental parameters will have to be adopted so that the offensive content in the games which is said to be harmful to society and children is reduced and also the standards laid by bodies as Americas Entertainment Software Rating Board (ESRB) and relevant authorities in respective countries need to be stringently observed and applied.

The control of piracy will be another major issue which would have to be tackled by the video gaming industry by education, awareness and legal processes for the same particularly in Third World countries. This will overcome the threat of substitute products and services. As also the alternative modes of game playing, on line PC and mobile gaming are perhaps the biggest threats to console gaming which it has to factor in its future strategies. The rivalry between existing firms should not be self destructive and should on the other hand contribute to enhancing industry standards as well as reducing the costs.

Such a positive result can also be achieved by developing an effective self supporting relationship as has been discussed in the paper. This will also add to the bargaining power of the buyers as well as the suppliers, fulfilling Porters parameters. Future trend in game console Industry The oligopolistic relationship which has emerged in the market as brought out by Kline, Dyer-Witherford and Peuter (2003), due to factors such as licensing, rising costs, spin offs and demand for sequels is supported by examination of other issues and is likely to continue. Thus there is no immediate threat of a new entrant.

The high cost of entry will also prevent any new competitor from emerging in the near future. At the same time rivalry in the three firms, Sony, Nintendo and Microsoft will be increasingly sharpened. The convergence at mass market price will not only whet this competition but will also be driven by the linkages with the internet. Convergence is occurring in the electronic and communication industry at a rapid pace. The union between the PC and console devices appears inevitable despite resistance from console producers fearing fall in sale of their devices.

How long they are able to resist this shift remains to be seen. Online console gaming will be the most powerful trend which will drive growth. This will be the future of console gaming and will have to be factored by not only the console producers but also the developer and the gamers. This will bring about greater egalitarianism in the console gaming market for the benefit of both the supplier and the buyer. This will thus provide greater bargaining power to these principal entities in the power troika of the video gaming market and the primacy of the console may be reduced.

This is particularly significant as the developer as well as the gamer have alternative modes as online PC and mobile gaming which can affect the popularity of console gaming greatly and which is also bringing about major changes in the manner in which consoles are being configured to take on the challenge of substitute products. Thus it is seen that the coming period is likely to be of great opportunity for the gaming industry overall. Conclusion The electronics entertainment business is a growing industry with excellent prospects of growth as more people turn to home entertainment for leisure.

The growth prediction is as high as 70 percent. The video game industry is a key component of this business which is ever expanding and today has occupied the prime slot in home leisure activities second only to reading of books. The industry is intensely competitive and as the console developers, Sony, Microsoft and Nintendo attempt to gain an advantage, the developer as well as the consumer is making important contributions which have been very well recognized by all three principal players. Thus there is a total symbiosis between these three key components of the video game industry.

There are momentous changes which will come about in the industry through the growth of on line gaming, to which the consoles are being made compatible. This will enhance the power of the consumer as well as the developer and increasingly software codes are being provided even to consumer to alter and develop games as per their unique perception. Thus the research has clearly established the relationship between the console, developer and the gamer in the video gaming industry. Such a relationship is likely to contribute to overall growth of the industry along with other factors as indicated in the research.

Future game development will have to be based on greater dependence on theoretical concepts which will also incorporate the impact of games on education, culture and social conduct. The interplay of these factors need to be analyzed in greater detail and could form a part of further study on the subject and is thus recommended.


1. Adams, E. (2003) Break into the Game Industry: How to Get a Job Making Video Games, California: The McGraw-Hill Arroyo. (2005). Arroyo VOD Reaches 10GB Mark.

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