Video Game Industry Revenues Revenues have increased industry wide, suggesting the size of the pie is growing, creating room for more players at the table.

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Presentation transcript:

Video Game Industry Revenues Revenues have increased industry wide, suggesting the size of the pie is growing, creating room for more players at the table.

Top 10 Videogame Titles in 2001

Sony PlayStation2 Advantages Large Installed Base Veteran Market Leader Large Game Selection DVD Playback Downward Compatible EverQuest Online Gaming Disadvantages Lacks Latest Technology External Add-Ons for Expansion High Cost Verdict: Proven leader with many top selling games. Winner now and in the future in overall family entertainment. Will lose some market share to Microsoft but is still King of the Hill.

Nintendo GameCube Succeeding in luring software developers because the new console is developer friendly Selling at $199 ($100 cheaper than Sony and Microsoft) Releasing sequels to classics such as Mario Brothers and Legends of Zelda Needs a better start game to lead the debut of the game cube Disorganized and conservative with marketing Hard time getting inventory to retailers’ shelves Customers were sometimes unable to find the game cube over Christmas Advantages : Disadvantages : Verdict: Nintendo will continue to astonish and attract specifically younger audiences with their new generation console, the game cube. But they have captured a bigger market with their Game Boy Advance and will continue to hold this market share due to their entry timing, popularity, and large installment base of these hand held devices. game characters

Microsoft X-Box Advantages Online Connectivity Relationships with developers DVD Playback Technologically Advanced Large Cash Reserves Disadvantages High Cost Small Game Selection New to the Industry No installed base Limited Functionality Verdict: Slow start, but a lot of upside potential. Overall winner in the older gamer segment. Will take some market from Sony. Large cash reserves ensure longevity.