Gaming Industry Final

Gaming industry “ exceeding your imagination”

I

Introduction to gaming

industry Started in 1951 by Ralph bear in new Hampshire Pong was the first game to be introduced In 1973 8000 – 10000 pong machine were sold By this Japan invaded with bigger block buster PACMAN Japan by introducing Nintendo in to the market rule the entire gaming industry by whopping 90% share of the market in 1990 due to advancement of technology the gaming

•It is a 220 billion dollar industry •There is a hardware and software part of it •Coming to the hardware part the major players are SONY, NINTENDO ,MICROSOFT •In 2008 gaming racked in a whopping 21.33 billion $ a 19 % in crease over 17.91 billion $ earned In 2007 . •Gains were made across all segments of market. Hardware increased by 11% to 7.8 billion $ and software sales grew jumping 26% to 10.96 billion $

Various brands under a company SONY

NINTENDO

MICROSOFT

PSP PS PS2 PS3

Game boy DS Wii

PC X-box360

Market share in 2008

The changes in the hardware volume can be summed up as : Company

06'

07' *

08'

Nintendo

30.33m

45.08m

59.36m

22.28m

28.73m

30.75m

7.47m

7.93m

11.37m

60.08m

81.74m

101.48m

Sony Microsoft Total

Games publishers 20 08 po sitio n

Na me of pu bli she r

20 07 po sitio n

1

Nintendo

1

2

Electronic arts

2

3

Activision

3

4

Ubisoft

4

5

Sony computer entertainment

7

6

Take-two interactive

5

7

Sega sammy holdings/sega of America

10

8

TH Q

5

9

Microsoft games studios

9

10

Square enix

11

11

konami

15

12

Vivendi games 13

13

Namco bandai games

14

14

capcom

14

Gaming publishers are the company that publishes video games that they have either developed internally or have had developed by a video game developer

Mobile gaming : with the creation of cell phone, one was easily impressed with the mere fact that the phone required no cables but towards the end of 20th century, cellular phones started to modernize and people wanted more out of cell phone . Though the older cell phones were having games it was in black and white as hardware couldn’t support but as technology developed the storage and graphic of cell phone improved and many attractive cell phone games came In to the market … Online gaming : becoming very popular in today's world eg: zapak etc.. And also many competition are held among the gamers at international level and the winner receives 1million $ Types of games : •Arcade games •Single person shootout games •Strategy based games •Sports games •Adventure games •Movie based games (tomb raider , home alone,dhoom,fast and furious,krrish,ankahen,luck by chance)

Intelligent Start !!!!!!!!!!!!!!!

Marketing strategy 1)Gaining a competitive advantage. Unveiled the Xbox 360 to consumers four days before E3, aka the Electronic Entertainment Expo, started

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2)Marketing model: Direct-to-consumer strategy. 3)Branding strategy: Promoting its new console through nontraditional means with multiple

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partners and six months before shipment .

4)Networking strategy: Agreement with Samsung to collocate next-generation Xboxes with its high-definition TVs in retail stores

5)Exhaustive SCMProduct cycle has a front-loaded revenue stream

Unique Supply Chain Model by Microsoft

What’s so special?

Robust value chain analysis of Xbox

Do u know this?

Sony Like No Other…

Introduction • • • • • • •

Found in-1946(adopted its current name in 1958) Founders-Masaru Ibuka,Okio Morita Headquarters-Minato,Tokyo,Japan Key people-Sir Howard Stringer (CEO & Chairman) Sony got into the console gaming market in late 1994. It stands at first position in INDIA and second in the world market of gaming industry. Name derived form a Latin word SONUS.

Play station portal(PSP) Accessories:• •

PSP-S180E-video out and the component AVcable. PSP-S150E-video out and composite AV cable.can watchvideo from slimmer, lighter PSP system on any TV.

Games:• • •

Buzz-master quiz God of war LocoRoco

Playstation 2(PS2) Accessories:•

•

SCPH-10010E-The DUALSHOCK®2 analog controller delivers a more intuitive gaming experience, with pressure sensitivity on every action button and enhanced mobility of analog thumbsticks. 8MB Memory Card- Save game progress, hidden characters, highscore,special weapons, custom control settings.

Games:• • •

Gran turismo 4 Shadow of the colossus Ratchet and clank-size matters

Play station 3(PS3) Accessories:•

•

WIRELESS CONTROLLER- have pressure sensors in each button and inclusion of sixaxis,motion sensing technologies. PS3 BD Remote- enables control over Blu-ray disc player features.

Games:• • • •

Motor storm pacific rift Gran turismo 5 prologue Resistance 2 Little big planet

Swot analysis STRENGTH

OPPORTUNITIES

• giving customer the latest and greatest gaming hardware and software. • High-quality hardware. • Attuned to what their hardcore gamers’ wants are.

•

WEAKNESS • high-quality hardware = high prices • New technology=high

the PS3’s lower price convinced people waiting for Wii’s to buy available PS3s instead.

THREATS • •

PS3 customers shifting to XBOX-high prices Recession has threatened the PS3 sales.

Marketing objectives 1. 2.

Lowered down the hardware and software prices to grab the space created in the market of NINTENDO due to its unavailability. Attracting movie making companies to make use of BLU-RAY technology, thereby bringing revenues for the company.

Marketing plans 4. 5. 6.

Make Sony available on shelves always. Lowered price-capture market of XBOX. Took idea from NINTENDO and added the feature of motion sensitivity before release.

Marketing & Product strategies • • • •

• • •

Target customer- 15 to 30yrs Includes shooters and high action games such as Kill Zone and God of War younger children-more adventure based games such as Jak and Daxter and Crash Bandicoot Blu-ray offers the latest advancement in movie entertainment experience. The detail of these movies is so good that you can literally see individual pores on people’s faces. As you might expect, this means detail on everything is very high and movie buffs love it. High audio visual quality classic games available for download via the Playstation Network Little change in control setup-compared to PS1 & PS2

Pricing & Promotion & Supply chain strategies •

• • • • • • • • • •

Initially the prices were high then reduced to gain as much as possible from the marketskimming strategy (extracting the creamy layer of market) Provided a gaming system which also enables enables to watch movies on it. Offers down able games Nice warranty Enables multiplayer games Additional features-songs etc Backward compatibility with PS1,PS2games buys parts from different suppliers to construct the PS3 Then constructs units in Japan After repeated testing, sales in Japan n then shortly in US &so on From here they are sold to distributors.

Product attribute matrix Product

Seventh generation home video game console Dimensions 4 mm x 157 mm x 215.4 mm Accessories Wii remote, Nunchuk, sensor bar Cost $ 249.99 Target 8-80 year olds group Technology WiiConnect24 Add ons Free Wii game with each unit Free Wi-Fi connection Awards E3 Awards 2006, Popular Science, 2006, Gamespot, 2006, PC World’s most innovative product of the year,

Competitio n USP

Microsoft’s Xbox 360 and Sony’s PlayStation 3 Broader demographic base Wireless controller Wii remote

Selling channel

Retail outlets

Wii console

Wii sensor bar

Wii remote

Nunchuk

ii AC adaptor

Wii sports disc

Wii console stan

Wii AV cable

The Six Path Framework Price Graphics

Fun Marketing Strategy

Game Library Physics

Magic wand

Promotional strategy Free Wii game with each unit Free Wi-Fi connection

Strengths Uses motion sensitivity Broader demographic profile Affordable

Weaknesses Third party issues Deal with internal memory shortage: Spring 2009 Improve NCR Improve the software lineup Opportunities Threats Sony’s high price tag High shipping costs & declining sales

Future Innovations at Nintendo Tie up with NHK Educational to develop a software that introduce 100 basic words that are essential in daily English communication. New Game: Lets Tap Wii Fit: Health First

India: Destination Next for the International Gaming Industry

• Present Indian gaming market is $300 million • PC gaming break up of $ 90 million • console gaming break up of $ 210 million

Key Segments

• Computer games that are delivered on disks or CD- ROMs and played on a PC. • Video games • Wireless games • Indian companies cater to online game sites as well.

How Does It Work?

Publisher Ip owner Content developer Carrier and consumer

Major players in India

• • • • • •

Zapak.com Games2win.com Indiagames.com hungama dhruva interactive game shastra solutions

Market size 350 300

Revenues

250 200 150 100 50 0 Years

2003

2005 Years

2007

2009

Market share of gaming in India

online Consoles 2% 20% Mobile 53% Pc 25%

Future scope

• Indian mobile gaming market is forecast to exceed rs 800 crore by 2010. • The future for India's game development community looks bright in mobile gaming • India alone has 40 million mobile phone users

THE 5’S GROUP

Thank you… Shreeshasagar Smrity Srujana Sumedha Soumya