Tablets have shifted the handheld console market (Kittilaksanawong & Gillet, 2015) Ecological - The console industry heavily uses hazardous chemicals and materials. Microsoft, Sony and Nintendo have made commitments to improve the environmental impact of their products (Brigden, et al., 2008) Legal - Intellectual property is a significant competitive advantage and therefore needs to be defended accordingly (Greenspan, et al., 2014) - There are different ways and institutions analysing games and their impact on children, rating them accordingly (Entertainment Software Association, 2015b) Appendix II: Porter’s Five Forces Forces Considerations Rivalry among competitors - Dominated by Sony, Microsoft and Nintendo (Kittilaksanawong & Gillet, 2015) - Sony and Microsoft offerings more similar than Nintendo, top sellers for last generation platforms are third party releases (vgchartz.com, 2016) - Nintendo has a differentiated focus strategy (Kittilaksanawong & Gillet, 2015)
III - Considerable pressure for innovation, VR at the forefront at present (Euromonitor, 2015) Threat of new entry Hardware (Video consoles) - P resent, demonstrated by Valve’s Steam machine entry (Edwards, 2013; Valve Corporation, 2016) Software (Games) - High, independent developers have shown ability and success previously i.e. the substantial success of Minecraft by Mojang AB (Yarow, 2014) Threat of substitutes - Threat from PC and Mobile technologies (Kittilaksanawong & Gillet, 2015) - Mobiles threaten 3DS and other mobile gaming consoles, and provide gaming at lower prices - Other forms of entertainment (Streaming services) Bargaining power of suppliers - Some game developers have considerable bargaining power (EA, Activision) as they provide blockbuster titles i.e. Call of Duty, FIFA - Little chance of platform exclusivity for these games, however their availability provides considerable attractiveness for consoles. Bargaining power of Buyers - Considerable bargaining power rests with the buyers, only a few exclusive titles and features separate the offerings of the big three (i.e. Gran Turismo, Halo). - Buyers can easily change platforms with each generation released - A strong base of console owners enables companies attractiveness for third- party developers for release of their titles (Kittilaksanawong & Gillet, 2015)
You've reached the end of your free preview.
Want to read all 21 pages?
- Three '15
- ........., Wii, Video game console, Nintendo