Home Video Game

1 wherefore the rapid growth of Atari? Why the 1982-85 breach? How did Nintendo rebuild the patience? What was its system? by and by Bushnell settled on Atari, his set-back strengthened was the simplest naughty, which people knew the rules immediately, and this play could be vie with all one(a) hand. Then, Bushnell talked his way into a $ 50000 line of credit from a local bank to start his furrow organization. By 1974, 100,000 Pong-like wagers were exchange ecumenical, and although Atari manufactured scarce if 10 part of the hazard, the company still make $3. 2 million that year.Atari had a rapid growth because it is a new perseverance, and Atari does not start any challenger at that time. So, Atari is the only company in this syndicate goggle box game exertion, and it has a huge advancency of supplier with no competitors and substitutes. After 1976, most twenty different companies were crowding into the shoes videogame merchandise, Atari still has more than than 50% commercialize parcel in the industry. Until 1978, Atari estimated that total penury would reach 2 million units. In 1982, Atari lost $500 in the initiatory nine months of the year.Part of the blame for the generate was laid at the feet of an enormous stocktaking overhang of unsold games. With more and more new games hit the food commercialize, the average damage would goes d cause and the profits goes down as well. Nintendo established a commanding worldwide position by the end of the decade. The first step of Nintendo was to indorse video game technology from Magnavox. Then, Nintendo tried to develop its own video game mould (Famicom) that feature superior graphics processing capabilities and offset cost.In the US, Nintendo established a foot soldier named as Nintendo of America (NOA) by 1980, and Nintendo repositioned the market in U. S. NOA spent ab come on 2% of gross sales budget for advertizement and withal sought out promotion partner, and it skilful careful inventory management in releasing its new games. In conclusion, Nintendo made an innovative new game scheme which had some agonistical advantages such as cheaper, superior image quality, faster ironware processing and a connector that merchantman be utilise for future supplement of a modem and keyboard. How was Nintendo able to capture determine from the home video game melody? First of all, with the video game industrys collapse, none of the company seems to contain anything to do with the with the home video business except Nintendo. So, it was a big gamble for Nintendo to monopolize the video game business, and it was a substantially chance to negotiate and license other companies to develop games for its system. Secondly, Nintendo has earnest market position and distribution in joined Stated.Thirdly, Nintendo has close game designing and technology, and it uses the regulation, muster and patent license to limit the market share of other game companies. 3 How was Sega able to gain market share from Nintendo? With Segas first game Periscope, Sega create up a respectable exportation business. Then, Sega realized that great games drove sales and more powerful technology gave game developers the tools to develop more appealing games. Sega in any case licensed other companies to develop games for the generation platform, but asked for lower royalty pass judgment than Nintendo.Despite aggressive marketing in the 80s, it wasnt until the introduction of Sonic the Hedgehog in 1991 as a direct competitor to Nintendos Mario character that Sega was able to capture a meaningful amount of the market with its genesis console. The key point was Genesis does what Nintendo put one acrosst, and Sega version out sold Nintendos two to one. 4 Evaluate the competitive strategy of 3DO. What flaws bottom you see in 3DOs approach? The vision for 3DO was to veer the home video game business away from the existing cartridge-based format and toward a CD-ROM-based platform.The belief at 3DO is that the superior warehousing and graphics processing capabilities of the 3DO system would stir very attractive to game developers, allowing them to be far more creative. In turn, better games would attract customers away from Nintendo and Sega. The 3DOs strategy was to license its computer hardware technology for free. However, only a few 3DO titles were available by the Christmas period where reports suggested 150 titles, and sales of the hardware were slow. As can be seen, 3DO did good at its parcel, but bad at its hardware.As a result, 3DO announced that it would all sell its hardware system or move into joint venture. 5 How come the Sony Play Station has succeeded where 3DO failed? Sony set up a retail channel fail from its consumer electronics sales force, and Sony has a good parley with retailers before the launch to find out how it could help them sell the play station. Sony targets its advertising for PlayStation at specific generation and age range. So, Sony focused on it retailers and customers, and it has a good market position.On the other side, 3DO only focused on its products but lack of the communication with its retailers and customers. 6 What drove Microsofts decision to enter the industry with its X-box offering? Because before Microsoft entered the home video game industry, it was no stranger to games. Microsoft had long participated in the PC gaming industry and was one of the largest publishers of PC games. X-box was based on Microsofts PC technology, and it would be much easier for software developers to write game for.Microsoft enter the industry because with annual revenues in excess of $20 billion worldwide, the home video game industry is huge and an important parentage of potential growth for Microsoft. 7 What lessons can be versed from the history of the home video game industry that has been used to help launch the Sony PlayStation II and Microsofts X-Box? Do Microsoft and Sony appear to control well-read and applied these lessons? The lesson can be learned from the history of the home video industry was to focus on R&D, market positioning, cost leadership, innovation, technology and communications.Sony PlayStation II has consumed around 1. 3 billion in R&D, and Sony actually loses money on Sony PlayStation machine but gain from game CDs. On the other side, Microsofts X-Box cut X-box wrong over time but guaranteed a profit margin. There are tercet technical factors determined the quality of a video game data largeness (in bits), clock speed (in MHz), and the amount of read/write memory (in bytes). Both Sony PlayStation II and Microsofts X-Box have their own competitive advantage in these technologies, and they also both are good game designers.