The Impact Of Gaming On The Gaming Industry

2004 Words9 Pages
Since the video game console industry had a narrow focus, the entire gaming industry was used for this scenario planning exercise. The environmental scan focused mainly on the competitive aspect and left out many external factors. In order to give adequate attention to the external environment, a PESTEL analysis was conducted. This helped determine external factors that the gaming industry faced that were not in control of a single company, or their competitors. PESTEL In the political aspect of PESTEL, the main focus was on globalization and product dispersion. Most gaming devices are made overseas, China and Brazil, so international trade plays a major part in acquiring these products (CITE FROM SCAN). Items like trade restrictions, import duties and taxation are all things no competitor in the gaming console industry has control over. The legal section shares many similarities to the political one. The main focus here was trade and internet regulations. Gaming has shifted from being a solo action, to one played with others around the world. The top economic concern in this industry is the amount disposable income available. Gaming is a luxury good, so as income falls the sales of the product decreases as well (CITE). The economic growth, interest, inflation, exchange rate and unemployment all have a huge impact on the industry. Since the world is interconnected, if the exchange rate difference becomes great, cost burdens will have to be passed onto the consumer.
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