Marketing 524 – Module 2: Case Analysis Questions(1)Examine the elements of the external environment that shape competitiveness in this industry.What are the political, economic, social, and technological forces shaping the industry?Construct a PESTLE analysis that reflects your findings.PoliticalA political challenge currently facing the video gaming industry is the protest of racial biasbelieved to be programmed into video games. The recent protesting against police violence andracism towards black individuals has prompted gaming companies such as Electronic Arts, EpicGames, and Sony Interactive Entertainment/PlayStation to issue statements of support on theseissues and make monetary donations to advocacy organizations (Peckham, 2020). Racial biascould possibly be programmed into the video games unintentionally by programmers unaware ofthe sensitivity individuals may have. Black characters tend to be depicted as violent in videogames and resonates that impression of them with other gamers. They account for roughly 10%of the characters shown in video games, and this could deter black gamers from purchasing andplaying video games appearing to be tailored for other gamers.The gaming industry could incentivize on this challenge by marketing video games thatincorporate characters based on those minorities and reflecting them in a more positive gamingrole.EconomicThe gaming industry generated $35 billion dollars in 2019, 2% over 2018 (ESA, 2020). Thisamount includes revenue generated from software, in-game purchases and spending on mobilegaming. The industry contributes substantially to the GDP of the world, generates significant taxrevenue and creates millions of jobs. The industry has experienced a spike in game sales this yeardue to the coronavirus and individuals being mandated to stay at home. The latest video gameshave been experiencing record sales. Gamers spent 65% more in March of this year on videogames as compared to the same time last year. For the F2P market, Activision Blizzard’s Call ofDuty: Warzone piqued the interest of 30 million players within the first ten days of beinglaunched (Huang, 2020). Gaming allowed individuals to interact and socialize with others duringa time when options were limited. The economic growth declined in the second quarter of 2020by 31.4% due to the coronavirus and the recession caused by the pandemic (Amadeo & Johnson,2020). The gaming industry was not hindered by the pandemic, but there has been the challengeof releasing games by intended dates. Game delays have been caused by Internet servers, travelbans, shipping delays and the challenge of working remotely (Smith, 2020).The Xbox X andSony Playstation 5 are due to be released in the 2020 holiday season. A delay in the release couldresult in a huge loss of revenue this year. If the video game industry can determine a way toassist game developers in working from home to develop as much as possible and secureguaranteed delivery from third parties, game delays should be minimized.
Social
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Term
Winter
Professor
N/A
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Electronic Arts
