Production
Production relates to the network of organizations, with different roles to play in the release of the online video games, combining their production processes to come up with the games. The production activities involve software development, hardware production, graphics and genre innovation, and mobile phone integration (De Prato, Feijóo and Simon 8). All these production activities will determine the quality of the product released to the retailers and final consumers (gamers). A more developed production process that includes advanced technologies and efficient production layouts will determine the quantity produced, thereby influencing whether or not the supply will be sufficient for the users. There are above 1.8 billion
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The monopolistic market structure brought by the online gaming sector procuring similar end products that are differentiated and do not have perfect substitutes. It can be said that the market affects the gaming industry by determining the number of users or gamers that will play the games, which in turn influence the expansion and growth of the industry.
Governments
The governments create and enact different laws, regulations, and policies to control this emerging industry. The legislation and policies could limit operational hours of internet cafes. Moreover, the governments provide addiction prevention programs and connect them with the professional human resource. The nature and content of the online games are also monitored by different governmental agencies. What is more, the registration, approval, and licensing mechanisms of the games and online gaming companies are enforced by the governments. All these steps that are taken by the governments to ensure that the online gaming sector meets the required standards of operation and does not adversely impact the user affect the industry in several ways, including the graphics and genre included in the produced games (Ng and Wiemer-Hastings 113). Besides, the support from the government also augments the innovation and research and development processes initiated by the industry, which affects their success.
Section II: Roles and Opportunities of Entities
Firms
The firms should play future roles in ensuring that
“Video games are bad for you, that’s what they said about rock-n-roll” (Shigeru Miyamoto). Video gaming is regarded as a ubiquitous part of children and adolescents’ life. Children who are daily involved in this activity in the US account for 97% of their total. Additionally, for those at an average of 8-13 years old, approximately, 8.5% of them are addicted to playing video games. Moreover, children at the age of 13-18 spend 16 hours per week playing. Video games are so prominent in this current world that we cannot prevent them from being involved entirely. While others believe that video games should not be made available to
Video game effects are relatively new in modern society. Even though these games are often entertaining, the content of the game has been increasingly more and more violent as technology becomes more prevalent. The popularity of violent video games has caused an increase in controversy. Parents and experts feel that some games are just too violent and they demand the government to regulate the sales of these games. However, violent video games do not cause an increase in aggression, in adolescents. The forceful plan by the government is caused by an exaggeration of the effects of violent video games and this plan are indeed pointless.
With the competition in the video games industry getting more intense, the next steps of the video game companies become more crucial for their positioning on the market. Due to the low product differentiation, the next market leader will be the platform provider that manages to offer an innovative gaming experience and a wider population of buyers that include all demographics. Although the industry is being totally dominated by Nintendo’s console, the industry is still considered to show a
Aside from the point of access for online games played, it is important to understand the market segments for online gamers. A study by Park Associates as cited by David Edery, CEO of Spry Fox, outlines a diversification of gamers into six categories: 1. Power gamers who are 11% of the total gamer market but represent 30% of current spending. 2. Social gamers account for 13% of the market. 3. Leisure gamers hold 14% of the market and spend an average of 58 hours per month playing casual titles. This group prefers challenging games and show high interest in new gaming services . 4. Dormant gamers are 26% of the market. They enjoy gaming, but spend very little time playing due to life’s obligations. 5. Incidental gamers are 12% of the market, with an average of 20 hours a month game time. They usually play out of boredom. 6: Occasional gamers comprise 24% of the market and play puzzle, word, and board games (Edery, 2006).
He states, “it was sobering to see row after row of kids glued to these screens expressionless… as it turns out a few people have actually died in PC bangs after gaming marathons where they played 50 hours or more with little food or water.” It's almost remarkable to hear that such things can happen in a controlled environment such as a cafe. We almost neglect are human needs to continue pleasuring our virtual desires. While in Korea, the cast got a better understanding of the situation with the occurring problem when they met 15 year old Chung Young IL. His mother felt that she could be losing her son to these games, his academics submarine due to the games his mom said. Conversations between the two were almost non-existent as Young gave little to no response when his mother would ask a question. Her fear resulted in his enrollment at the internet rescue school in an effort to help him with his addiction. The government sees the issue and answers the cry for help, but what's going on everywhere else though, what exactly is being done to tackle this very real problem? More importantly, what triggers this wanting for online games, and are all the effects
The legal issues faced by the video game industry include trademarks, copyrights, licensing, online ownership, revenue recognition and demands of
o Improved ability to rapidly and accurately recognize visual information - A study from Beth Israel Medical Center NY, found a direct link between skill at video
The major publishing and development houses in video games seem to be running out of ideas – at least, in the eyes of the gaming community (Community.us.playstation.com 2014). Every year, the market gets more and more saturated with sequels for games. (IGN 2015) These can be relatively innocent games, like those in the Mario franchise (or, indeed, much of the Nintendo universe); they can be more problematic games, like the Call of Duty franchise, infamous for having players much younger than the ESRB rating of Mature would recommend; and they can be expansions on previous games, like World of Warcraft or Hearthstone.(Hewitt, 2015)(Kotzer, 2014) The reason behind this is largely economic – most video game companies want to ‘play it safe,’
In the year 2016, the video game industry hit an important milestone. As seen in this 2015-2019 analysis, the industry hit a market value of over $100,000,000,000: (“THE GLOBAL GAMES MARKET REACHES $99.6 BILLION IN 2016, MOBILE GENERATING 37%”). Just like today, 1983 was looking great for the future of video games. However, unlike today, 1983 did not go great for the video game industry, it went awfully. In 1983, the video game industry crashed and has not fully recovered to the value of the market since. (“Video Games in the United States”). Due to the unfortunate events of over-sensationalised media, an overflowing market, incorrect judgements, and poor business, the video game industry hit rock bottom in 1983 and took a mastermind
Online games become a new hobby for the past ten years. People of different ages and genders play in online games and it is one of the easiest ways of entertainment. Today we have a huge variety of online games such as “Dota 2”, “World of Warcraft ”, “Day Z” or “Battlefield 4”. They are varied in genre, graphics and the plot, therefore everyone can find the game they like. Since the online games become very popular, and played by the huge number of users, online gaming might affect people’s lives, and there are two sides of the coin.
Production costs can be high, there is a major learning curve, and access to distribution channels and inputs can also create challenges. In this technological advancement driven industry, the possession of proprietary technology, partnerships with the best but cheapest suppliers can be considered high barriers to new entrants. Once a game console is on the market, more money needs to be invested into games and accessories as well as production due to the fact that most of the profits come from game sales rather than console sales.
Entertainment media has been advancing for decades. One type of entertainment media that has been advancing for so long, and is considered to most to be the number one type of entertainment, are video games. Although video games are highly praised by most users, there are many controversies that mention the effects of video games on the behavior on typical users. Some believe that video games cause people to act more violently, have different social interactions, or perhaps develop the brain activity to be more useful. However, not only that, but video games have inspired real life interactions such as romance, conventions, video game knowledge, and much more. Video games have different effects on people socially and mentally, and sometimes these effects are determined by the type of game that is played, or the person itself.
Herman et all (2002) points out that history of video games begins from 1971 year, when Nutting association released 1500 machines with Spacewar video game. At the beginning it was too difficult to control the game process and playing machines had huge dimensions. But by the time with new technologies they become more compact and easier to play. According to the information given by Herman et all (2002), the period between the years of 1978-1981 is called ‘golden age’ of video game industry. In this period the arcade games ‘Football’ and ‘Space Invaders’ were released. All previously known sale records were broken by these two games with nearly equal wages. In this time interval great breakthroughs in the field of graphics were achieved,
Development in technology brings many things that people don't have many years back. One of these things is online gaming that is provided by the internet.
Online gaming has grown rapidly around the world over the past several years. While many developing countries from the west have initiated much more developed and modern technology to help enhance gaming capabilities and their market, few eastern countries like Korea and China have lead the world in the developments of online games. The fast and high developments of online games in these eastern countries are so broad that it’s even part of their growing culture. Dal Yong Jin states, “Korea’s rapid growth in the online game market has been unique in terms of the growth of its domestic online game industry, the dominance of its local games in the global market, and the degree to which its youth culture is embedded in online gaming.” Not only does the gaming culture and economy in Korea benefit themselves, but also affects the U.S. and many other western countries in terms of the global game market and it’s expected rapid growth in the near future. Around 2006, the online game market was estimated to be valued around 4.98 billion dollars and has grown to as much as 11.88 billion dollars in 2011. Contributing to about half of that value was the Asian market with Korea instituting the largest and most viable market in the world. With such a rich and growing sector in the global market, online gaming has become an expanding form of entertainment that has turned from being just a leisure