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 Game boy PC

PS DS X-box360
PS2 Wii
PS3

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

Sony
22.28m 28.73m 30.75m
Microsoft
7.47m 7.93m 11.37m
Total
60.08m 81.74m 101.48m
Games publishers

20 08 Na me of 20 07
po sitio n pu bli she r po sitio n

1 Nintendo 1

2 Electronic 2
arts
3 Activision 3

4 Ubisoft 4

5 Sony 7
computer
entertainment
6 Take-two 5
interactive
7 Sega sammy 10
holdings/sega
of America
 8 TH Q 5

9 Microsoft 9
games
studios
10 Square enix 11

11 konami 15

12 Vivendi games 13

13 Namco bandai 14
games
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 .
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…
 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 • the PS3’s lower price
latest and greatest convinced people waiting
gaming hardware and for Wii’s to buy available
software. PS3s instead.
• High-quality
hardware.
• Attuned to what their THREATS
hardcore gamers’ • PS3 customers shifting to
wants are. XBOX-high prices
• Recession has threatened
WEAKNESS the PS3 sales.
• high-quality hardware =
high prices
• New technology=high
 Marketing objectives
1. 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 plans
4. Make Sony available on shelves always.
5. Lowered price-capture market of XBOX.
6. 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 market- skimming
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 Microsoft’s Xbox 360 and Sony’s
n PlayStation 3
USP Broader demographic base
Wireless controller
Wii remote

Selling Retail outlets

channel
 Wii console

Wii sensor bar

Wii remote

Nunchuk
Wii sports disc Wii console stan

ii AC adaptor Wii AV cable

 The Six Path Framework
Price

Fun Graphics
Marketing
Strategy

Game Magic
Library wand
Physics
 Promotional
strategy

Free Wii game with each

unit
Free Wi-Fi connection
 Strengths Weaknesses
Uses motion Third party issues
sensitivity Deal with internal
Broader demographic memory shortage:
profile Spring 2009
Affordable 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

250
Revenues

200

150

100

50

0
Years 2003 2005 2007 2009
Years
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