“ exceeding your imagination”

Gaming industry

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 got better more challenging, realistic to play

•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 Game boy PCPS DS X-box360PS2 Wii PS3 Market share in 2008

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

06' 07' * 08'

30.33m 45.08m 59.36m

22.28m 28.73m 30.75m

7.47m 7.93m 11.37m

60.08m 81.74m 101.48m

Company

Nintendo

Sony

Microsoft

Total

Games publishers

2008 position Name of publisher

2007 position

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 THQ 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 strategy1)Gaining a competitive advantage. Unveiled the Xbox 360 to consumers four days before E3, aka the Electronic Entertainment

Expo, started.2)Marketing model: Direct-to-consumer strategy.3)Branding strategy: Promoting its new console through nontraditional means with multiple 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 SCM- Product 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…

Introduction1. Found in-1946(adopted its current name in 1958)2. Founders-Masaru Ibuka,Okio Morita3. Headquarters-Minato,Tokyo,Japan4. Key people-Sir Howard Stringer (CEO & Chairman)5. Sony got into the console gaming market in late

1994.6. It stands at first position in INDIA and second in

the world market of gaming industry.7. 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• 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 prices.

OPPORTUNITIES• 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 objectives1. Lowered down the hardware and software prices to grab the

space created in the market of NINTENDO due to its unavailability.

2. Attracting movie making companies to make use of BLU-RAY technology, thereby bringing revenues for the company.

Marketing plans1. Make Sony available on shelves always.2. Lowered price-capture market of XBOX.3. Took idea from NINTENDO and added the feature of motion

sensitivity before release.

Marketing & Product strategies

1. Target customer- 15 to 30yrs2. Includes shooters and high action games such as Kill Zone and God of

War3. younger children-more adventure based games such as Jak and Daxter

and Crash Bandicoot4. 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.

5. High audio visual quality6. classic games available for download via the Playstation Network 7. Little change in control setup-compared to PS1 & PS2

Pricing & Promotion & Supply chain strategies

1. Initially the prices were high then reduced to gain as much as possible from the market- skimming strategy (extracting the creamy layer of market)

2. Provided a gaming system which also enables enables to watch movies on it.

3. Offers down able games4. Nice warranty5. Enables multiplayer games6. Additional features-songs etc7. Backward compatibility with PS1,PS2games8. buys parts from different suppliers to construct the PS39. Then constructs units in Japan10. After repeated testing, sales in Japan n then shortly in US &so on11. From here they are sold to distributors.

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 group

8-80 year olds

Technology WiiConnect24

Add ons Free Wii game with each unitFree Wi-Fi connection

Awards E3 Awards 2006, Popular Science, 2006, Gamespot, 2006, PC World’s most innovative product of the year,

Product attribute matrix

Competition

Microsoft’s Xbox 360 and Sony’s PlayStation 3

USP Broader demographic baseWireless controllerWii remote

Selling channel

Retail outlets

Wii sports disc

Wii AC adaptor Wii AV cable

Wii sensor bar

Nunchuk

Wii remote

Wii console

Wii console stand

The Six Path Framework

MarketingStrategy

Magicwand

Physics

GameLibrary

Fun

Price

Graphics

Promotional strategy

Free Wii game with each unitFree Wi-Fi connection

StrengthsUses motion sensitivityBroader demographic profileAffordable

WeaknessesThird party issuesDeal with internal memory shortage: Spring 2009Improve NCRImprove the software lineup

OpportunitiesSony’s high price tag & declining sales

ThreatsHigh shipping costs

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

0

50

100

150

200

250

300

350

Years 2003 2005 2007 2009

Years

Rev

enu

es

Market share of gaming in India

Mobile53%

Pc25%

Consoles20%

online2%

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