New Entrants Industry Competitors Buyers Porter’s Five Forces Suppliers The Video Game Industry Substitutes
The Video Game Industry Competitors
The Video Game Industry Play. Station 2 Game. Cube Xbox Processor Industry Competitors 128 -bit “Emotion Engine” 300 MHz, FPU co-processor, max bus transfer rate 3. 2 GB/s IBM Power. PC “Gekko” 485 MHz, max bus transfer rate 2. 6 GB/s Intel Pentium III 733 MHz, max bus transfer rate 6. 4 GB/s Graphics 150 MHz, 70 million polygons/s 162 MHz, 12 million polygons/s Nvidia GPU 250 MHz, about 125 million polygons/s Game medium 47. GB DVD, CD 1. 5 GB optical disc 4. 7 GB DVD Controller 2 controller ports, controller included 4 controller ports, wireless controller 4 controller ports RAM 32 MB 40 MB 64 MB Network 56 k modem, expansion unit for network interface 56 k modem (to be replaced by broadband modem) Ethernet port Other features Two memory card slots, optical digital output, two USB ports, Fire. Wire port, type III PCMCIA card slot, support for audio CD and DVD-Video, 3. 5” hard disc drive bay Two slots for 4 MB memory cards or a 64 MB SDDigicard adapter, highspeed parallel port, two high -speed serial ports, analog and digital av outputs 8 -GB built-in hard drive, 5 X DVD drive, 8 -MB removable memory card, expansion port
The Video Game Industry New Entrants • Gaining market visibility is hard • Relationship between console producers and game makers • Attracting loyal players • High market costs • PC producers • Portable gaming
The Video Game Industry Buyers • Bargaining power moderately strong • Buyer demographics • Buyer volume of Sony is greatest • Brand identity influence buyers • Buyers face high switching costs
The Video Game Industry Substitutes Direct Substitutes: • Personal computers • PDA games • Mobile phone games Indirect Substitutes: • Arcades • Movies • Recreation, sports, hobbies vs.
The Video Game Industry Suppliers Computer Chip Manufacturers • Not in a position to manufacture own chips • Switching costs low • Neutral to moderate influence
The Video Game Industry Suppliers Software Developers • Highly dependent for high quality products • Additional hardware sale come from software sales • Software developers have autonomy • In-house programmers begun to reduce leverage • Strong influence
The Video Game Industry 5 -Forces Summary Industry Competitors High New Entrants Low Substitutes Moderate Suppliers Computer Chip Suppliers Neutral-Moderate Software Developers Strong Buyers Strong Bargaining Power
The Video Game Industry Conclusion w PC maker entry possible w Mergers likely w Expanded, multiple functions vital w New target audiences promising w Careful strategy planning crucial
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