The Video Game Industry The Players, Strategy, and Future By: Kristian Peterson, Chris Orme, Gary Tonlinson, and Gwendolyn Rex

The Players Microsoft Xbox Microsoft Xbox Sony Play Station II Sony Play Station II Nintendo Game Cube Nintendo Game Cube

Microsoft Strategy: Internet gaming Integrated home entertainment & computing Technology leader

Advantages Technological experience & reputation Technological experience & reputation Plentiful financial resources Plentiful financial resources Use of new and current technology Use of new and current technology Internet game capabilityInternet game capability nForce graphics cardnForce graphics card 10-gigabyte hard drive10-gigabyte hard drive Pentium III processorPentium III processor DVD playerDVD player Ability to wait out product growth Ability to wait out product growth

Barriers Internet connectivity problems Internet connectivity problems No experience or reputation in the video game industry No experience or reputation in the video game industry Small game selection Small game selection No established popular games or characters No established popular games or characters Introduced after the other consoles were already in the homes of consumers Introduced after the other consoles were already in the homes of consumers

Sony Strategy: Maintain market share leadership Have the best game selection Provide leading technology capability

Advantages Console introduced earlier than the competition Console introduced earlier than the competition Plays games from Play Station I Plays games from Play Station I Variety and popularity of games Variety and popularity of games Up to date technology Up to date technology DVD play capabilityDVD play capability Internet connectionInternet connection Reputation Reputation

Barriers Keeping up with the high technology of Microsoft Keeping up with the high technology of Microsoft

Nintendo Strategy: Dominate the younger audience Strive to keep loyalty as buyers grow Draw buyers through popular game characters and cheaper console

Advantages A console that is $100 cheaper than the competition A console that is $100 cheaper than the competition Popular game characters Popular game characters More wholesome games (less violence) More wholesome games (less violence) Console mobility and simplicity Console mobility and simplicity Experience Experience

Barriers A console that lacks the technology of the competition A console that lacks the technology of the competition Later introduction than Sony Later introduction than Sony Viewed more for a younger audience Viewed more for a younger audience Not backward compatible with Nintendo 64 games Not backward compatible with Nintendo 64 games

The video game industry will continue to grow and diversify in its audience. We forecast a split in the market. One part will be more focused on the family and younger audience. The other part will be larger and draw those who are more technical and seeking the latest and greatest.

Sony will continue to keep up with Microsoft in technology. In the long run, they may loose majority status, but their game selection will keep them the leader for some time. Sony will continue to keep up with Microsoft in technology. In the long run, they may loose majority status, but their game selection will keep them the leader for some time. Nintendo will dominate the younger audience and will try to make improvements to keep loyalty as their customers grow. Nintendo will dominate the younger audience and will try to make improvements to keep loyalty as their customers grow. Microsoft will continue to be a leader and trendsetter technologically. Sony will be their major competition, but Microsoft will establish a large market share. Microsoft will continue to be a leader and trendsetter technologically. Sony will be their major competition, but Microsoft will establish a large market share.