What Is the Defining Business and Economic Characteristics of the Video Game Console Industry?

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What is the defining business and economic characteristics of the video game console industry? ① Intensity of competition: the competition in the video game industry is dramatically fierce.There are three largest companies in this industry, which are Nintendo, Sony and Microsoft. Additionally, lots of companies have relatively high level of strength, for example:high technology and meet the social trend, which are able to compete in the market place. ②Market size; the target market for the products cover all over the world ,however,the cumulate sales in Europe, Japan and the U.S are higher compare to other regions. ③Influenced by global recession: video game is not the necessary product, hence,the global economic recession have influenced the sale of video game products. The revenue declines 6% in 2010 compare to 2009, and also continued decreasing in 2011. ④Growth rapidly:the video game industry have been growingrapidly, and also expected to continue growing in the future. What is the industry like?

The companies in video game industry refer to provide high technological and innovative products. It includes online game, mobile game, video game console and handheld game. In addition, in order to attract exist and potential consumers and build customer loyalty, these companies multiply their efforts to enhancethe technology of the products.What’s more, video game business sectorupdate very fast, the new generation replaced the old one in short period. Meanwhile, the companies launched latest production rapidly. However, an obviously issue is that the target market is limited, young men are the majority part. What 3-5 key factors determine the success of video game console developers like Nintendo (2009-2012)? 1.Unique concept of video game console:

In the original period, the video game companies tend to pay more attention to improving technology, which lead to less market share and high competition, however, after a strategic research, Nintendo intend to...
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