Environmental Scanning of Nintendo

The network effects in the video game industry are derived from the console system that is sold to consumers. If a company is able to increase penetration in this arena, though at-cost/ below-cost pricing or pull created through the development of desirable content, it can potentially lock in the added value of the video games sold for the system. Which is to say, the console locks-in the network effects in the industry and the games serve to reap the profits. The video games, however, may present something of a challenge in that they can be somewhat easily replicated by competitors. Nintendo used an encrypted chip system to reduce this possibility.

Video games are a fast growing form of technology. This issue has to be discussed because of the two confronting sides that embark it. Because of the issue video games have to either continue growing as they are or they have to be stopped completely or a settlement between the two parties has to be

Although, seeing as video games are increasingly popular today, not everyone met as unfortunate of a fate. Today, many could credit this to the video game development corporation known as Atari, which arose in 1972 and continuously flourished until about 1982. In 1972, Atari came out with PONG, the first electronic arcade game, and it was an enormous accomplishment that exploded into what is now called the electronic gaming revolution. As time passed, Atari managed to triumph over its competition time and time again, but that is not to say that each of the failed corporations did not feature something that is used today. In fact, a couple of the failed organizations contributed something original to what is common today. For instance, Fairchild Camera and Instrument creating the first system that could play several different games, rather than just one. Another aforementioned group, RCA, was the first to produce and utilize keypad controllers instead of paddles or joysticks. Other consoles that came along, such as Intellivision and Vectrex, sported better graphics than the Atari’s consoles and games, but they still did not manage to gross the amount of money that Atari did because Atari was still on top of collecting all of the most entertaining and enjoyable games of their time. Keep in mind what attracted the masses to video games in the past: fun and addictive gameplay, not how good they looked. Now that the principal eras of gaming have been

There are many people play video game, pc game, massively multiplayer online game and mobile game, the game industry is increasing. Because of technology, the game industry can develop more game which have high quality, and develop more generation of console.

1. Describe the technological, social, and political factors acting on the video game industry. Some of the environmental forces that influence the video game industry included technological,

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

Macro environment are the external and uncontrollable factors that influence an organization’s decision making and affects its performance and strategies.

Kids were hooked on games in the arcades and wanted to bring the experience into the household. Nowadays, video games are a big market and throughout the past few years, the industry has boomed into a very large business where big companies like Nintendo, Sega, Sony and Microsoft are fighting to be the best. Because there are so many games for these systems and because it is such a big business, stores specialising in only these games are opening everywhere. The big competition between these companies accounts for the rapid development of computer games in the past few years. Since they keep bringing out new games, they get better and better.

Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.

Every industry must work within the confines of the law. It should come as no surprise that the video game industry is not immune. Common red flags like Copyright infringement, using the likeness of others, or 1st amendment concerns, are volatile problems that can hinder the progress with any studio. Learning how to identify major issues such as these can help a company avoid legal ramifications in the long run. Three interesting cases that highlight these issues and can be used as great examples are: Tetris v. Xio, Davis/Dupree/Keller/Ferragamo v. Electronic Arts and Schwarzenegger v. Entertainment Merchants Association.

Electronics Art’s (EA) competitive advantage from the perspective of the industrial organization view (I/O) is their choice of industry is very attractive. Todays world consist of many people who spend several hours playing video games. EA is from this aspect is stacking up ok against their competitors but they are also failing in their position. EA’s sales are down from previous years and they also missed the initial social gaming trend of which they are now trying hard to develop a digital platform for many of their popular games. The next perspective is resource-based view (RBV). EA’s resource based view in the past was great until the digital gaming came on board. EA was used to the technology at that time when

The three dominant players have taken the early mover advantage to grow their businesses. High level of adoption and efficient production are essential in this industry because consoles are traditionally sold at a loss and revenues are made up by licensing games to developers. This makes it very a difficult industry for new entrants. New technology incurs high cost of capital in research and development (R&D) and low product differentiation requires advertising and marketing. Their brand establishment, together with their capabilities to make high investments in required fields have helped the three firms to gain industry specific expertise, fast paced technological capability, and strong brand loyalty which keep the threat of new entrants moderately low (Wingfield, 2013).

The video game industry is a multibillion dollar a year industry, so it isn't hard to understand why they go through great strides to protect their image. They provide entertainment to all ages, genders, nationalities, and ethnicities. Contrary to the opinions of the industries opponents, video games are not destroying our youth, they challenge, educate, and provide an escape from an oppressive world.

Nintendo however is not present in this new market and therefore it is very important to take in consideration to enter this new area because at the moment the company does not have products that satisfy those new needs resulting in the loose of sales and consequently revenues.

This report is about the impacts of computer games on society, including benefits and concerns that could occur from playing them.