The Video Game Industry Marketing Essay Case Study

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Video Game Industry Marketing Case Study

The Video Game Industry

 

Type of Industry

Entertainment 

Headquarters

NA

Sales/Revenue

$134.9 Billion (2018)

Area Served

Worldwide

Number of Stores

NA

Competition

NA

USP

Technology-driven entertainment 

Target Group

Children, teenagers, and young adults

Products

Video games

Website

NA

The Video Game Industry Marketing Essay Introduction

The video game industry’s business is on the hike from the perspective of profitability. The industry has witnessed a major increase in profit in 2017 and with a $134.9 billion market value, the industry marked a 10.9% increase in revenue earning in 2018. It has been projected that the video game industry will sustain its profitability throughout 2019 with chances of accomplishing a higher rate of profitability. The video game industry marketing case study is meant for assessing the business prospects of the entire video game industry and a through SWOT and PESTLE Analysis of the video game industry will add to the strength of the video game industry marketing case study.

The Video Game Industry Marketing Essay SWOT Analysis

Strengths

Growth is the primary strength of the video game industry. The video game industry marketing case study has revealed that the development of new game consoles and their widespread business on a global basis has strengthened the chances for the video game industry to sustain its profitability and hold on to its huge market share. Majority of video game makers are now eyeing at spreading globally, reaching the global audience and the global customer segments. In this respect, the development of sound marketing strategies has added to the strength of the major video game makers.  The video game industry marketing case study has also revealed that casual gaming has continued to appeal to the senses of a huge customer segment worldwide, and this has added to the strengths of the video game industry. Moreover, the significant revenue earned through online multiplayer games should also be considered among the primary strengths of the video game industry.

Weaknesses

The dearth of talent to feed on all the video game productions that are recently going on should be considered among the primary weaknesses of the video game industry. The video game industry marketing case study has revealed that the video game industry presently is suffering from lack of sufficient talent pool, and this should be considered a major weakness of the video game industry. The video game industry marketing case study has also revealed that the entire video game industry is suffering from the crisis of good and effective project managers who have the ability to manage multi-disciplinary teams globally (Kripalani, 2007).

Opportunities

Despite weaknesses, the video game industry has growth and development opportunities. For instance, as revealed by the video game industry marketing case study, the video game industry marketing case study has revealed that, small studios have the opportunity to develop into important hubs producing casual games for global customers. Moreover, hinting on the expansion opportunities it can be said that, the video game industry, through the introduction on pocket-friendly and cost-effective gaming consoles, has the opportunity to penetrate deep into new markets that still not have been properly explored. Besides, the video game industry has the opportunity to establish more effective collaborations with smartphone and mobile phone producing companies in order to enhance the business profitability on a global basis.

Threats

One of the biggest treats faced by the video game industry, as revealed by the video game industry marketing case study, is worldwide criticisms against popular yet violent games that have been identified as sources of juvenile delinquencies. Moreover, confinement and limitations in respect of target customer demographic should also be considered a serious threat to the global business of the video game industry. Also, it has to be noted that the inability of the video game industry to appeal to the girls (including teenager girls) should also be considered a serious threat to its global business prospects.

The Video Game Industry Marketing Essay PESTLE Analysis

Political Environment

A favorable political environment is one of the keys to business success, and this holds true for the video game industry. The video game industry marketing case study has revealed that majority of key players in the industry are operating in countries where there is political stability. This has added to their scopes for global growth and expansion. Moreover, increased growth in governmental support worldwide in respect of protecting online data has also helped the online video game industry to flourish in an unprecedented manner over the last few years. This should also be considered a positive impact of the stable political environments prevailing in different countries of operation.

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Economic Environment

The popularity of video games in blooming and emerging Asian economies should also be considered a plus point for the video game industry in terms of sustaining its profitability. The video game industry marketing case study has revealed that key players in the video game industry have the opportunity to exploit the growth opportunities in developing economies offering highest growth rates. Moreover, it becomes noteworthy that the economic stability of the developed markets has supported the growth and expansion of the businesses of key players in the video game industry worldwide. This should also be considered a growth advantage for the video game industry as a whole.

Social/Socio-Cultural Environment

The equitable approach of wealth and resource distribution that has been embraced by majority of governments of the developed nations has paved the way for a social adoption of the video games. This has paved the way for the video game makers to reach out to broader demographic of customers who were, in the past, suffering from lack of access to the video gaming arena. Moreover, the changing cultural environment has allowed myriads of members of different societies globally to get inclined towards purchasing entertainment means like video games, and this has allowed the growth and expansion of the video game industry on a global basis.

Technological Environment

Technological advancements, as revealed by the video game industry marketing case study, have paved the way for the global spread, growth and expansion of the video game industry. In this respect, it must be noted that technologies like the Internet and the World Wide Web have provided opportunities to video game makers to spread their business online and reach more customer segments in remote locations. This has added to the profitability of the business of producing video games.

Legal Environment

The worldwide developments related to the process of improving patent protection have allowed the video game industry to operate in legally safe business environment that ensure profitability, growth and expansion.

Environmental Factors

The video game industry’s online mode has ensured sustainable business practices through the process of avoiding conventional business operations that had been identified as detrimental to environmental health. Presently, the key players in the video game industry are striving to focus more on the online mode of business expansion in order to ensure a greener economy.

References

Kripalani, M. (2007). SWOT: VIDEOGAMES. Retrieved September 3, 2019, from http://www.postmagazine.com/Publications/Post-Magazine/2007/December-1-2007/SWOT-VIDEOGAMES.aspx

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