Do you know how many people play the Video Game in the world? It is about 250 to 300 million people played in 2007, and by 2005 the average game player age had increased to 33, and 25 percent of gamers were over age 50. More than $35 billion was spent on video game consoles, game software, handheld game devices, mobile games, and online games in 2005. So the big three companies, Nintendo, Sony, and Microsoft have a big competition to attract the customers, it were expected to drive video game-related sales to more than $51 billion by 2010. Sony’s PlayStation 3, Microsoft’s Xbox 360, and Nintendo’s Wii were all equipped with powerful microprocessors, hard drive, Internet connectivity, and giving new capabilities and visual effects.
Technological leadership in computing power and graphics rendering were critical competitive capabilities needed in the console segment of the video game industry. A survey of 16,670 players of video games, for 87 percent of survey respondents, “appealing game titles” was the single most important feature in choosing a game system. In addition to cooperative relationships with independent game publishers, makers of video game consoles were also required to collaborate with microprocessor and graphics accelerator producers to develop nest-generation game systems. In developing the PlayStation 3, Xbox 360, and Wii consoles that were launched in 2005 and 2006, Microsoft, Nintendo, and Sony each allied with IBM in the development of the console microprocessor. All three companies maintained similar relationships with makers of graphics processing units (GPUs) to develop the technological capabilities to display HD-quality graphics and 3D effects.
Competition in the industry also mandated that game console manufacturers to establish relationships with such value chain allies as discounters, electronics retailers, and toy stores. There was little price competition among retailers in the sale of video game... [continues]
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