Video game industry

Video backy industrySony Computer Entertainment Ltd. Versus Nintendo Ltd.For many years, goggle box game industry has played a key role in the growth of economicals of some counties. Both Sony Computer Entertainment (SCE) and Nintendo ar ii representatives of this industry and they also are the primary(prenominal) competitors in this barbaric market place. Previous research has sh knowledge that SCE had dominated the telly game console market since Playstation2 entryed with 138 meg unit sales (Plunkett, 2009). Nintendo however occupy much selling theatrical role after their unseasoned generation game console Wii and Nintendo forked Screen (NDS) succeeded in this industry. This try on depart compare and contrast SCE and Nintendo in several aspects and this paper which based on secondary resources without exclusive information. Therefore, it will begin via discussing the characteristics of merchandise produced by these two companies, subsequently a preaching concer ning price factors between the products of two corporations, for examples the development cost and price of software. Finally, this essay will focus on the marketing share and sales.Nintendo is a multinational corporation founded on 23 September, 1889 by Fusajiro Yamauchi which producing handmade hanafuda cards. Then the alliance had tried several small businesses before they developed into a video game company, for example as a cab company and whop hotel (Nintendo, 2009a). Consequently, Takenaka (2007) points out Nintendo became lacquers third most valuable listed company by ontogeny game console and software, with a market value of over 85 meg USD. Nintendo on the other hand is the majority owner of the Seattle Mariners, a Major League Baseball team. Unlike Nintendo, SCE is a wholly-owned subsidiary of Sony which was complete on 16 November, 1993 for handling the Research and Development, production and sales of twain hardware and software for Playstation (SCE, 2009). SCE currently has three main headquarters or so the world Japan which falsifys operations in Asia USA and UK response to control operation in North America and Europe respectively.SCE and Nintendo have their own way to innovating for making their product prepossessing in order to go in the competitive market. Therefore, according to the announcements around new consoles of SCE in 2004 and 2006, Playstation portable (PSP) and Playstation3 has launched in 12 December 2004 and 11 November 2006 respectively. People were amazed about the high engineering science in the hardware of the two consoles, for instance, PS3 has built-in Blu-Ray platter (BD) player and cell processor, and PSP has UMD disc player and 3D image processor. BD is the new standard of disc which has enough space to save the high interpretation media files. As a result, the software launched for PS3 and PSP, particularly video games evolved by waste try out. Unlike SCE, Nintendo did not invest much to develop disru ptive technology in order to improving the hardware but creating new game style. The product features of Wii are the motion sensitive remote and NDS with touch screen and internal microphone. Therefore, most of software launched on Nintendo console has bring the features in full play. For instance, the Wii Fit is the education program about Yoga and it is suitable for throng who want learn yoga at home, especially ladies. Furthermore, My Word Coach DS and SekainoGohan Shaberu DS are the software for teaching user language and training respectively.While, Nintendos product no matter consoles and software are considerably cheaper than SCEs. The of import brand image of SONY and the costly latest technology for consoles determine SCEs product is expensive. There were two hardware configurations proclaimed for PS3 in E3 2006 a 20GB simulation and a 60GB model, initially priced at 499 USD and 599 USD respectively (IGN, 2006). Furthermore, PSP is the first venture of SCE in the pocke t game console market with price skimming system too. The price of the base model in first announcement of it was 19800 languish about 181 USD in 2004 (IGN, 2004). Then, in accordance with appendix 1(Curmudgeon Gamer, 2007), the table reveals the compare of the comely game price between DS and PSP in Mid-Nov 2006 and Mid-Apr 2007 respectively. The trends of average game price for PSP and DS both were experienced a lessen during that period of time. Besides, the average game price of PSP is more expensive than DS by 2-3 USD per game. However the price of Nintendos consoles wii and NDS are much lower than PS3 and PSP. Compared with PS3, the Wii launched in United States in November 2006 at 249.99 USD nearly half of PS3 (Sanders and Casamassina, 2006). Moreover, according to Harris (2004) Nintendo announced the NDS would be released in North America in November, 2004 for 149.99 USD.Nintendo already had busy much more marketing share than SCE with the successful strategy and the a ttractive features of consoles. Although SCE had invested significant mount of money for developing their new generation game console.Sony released its life-to-date sales for the PS3 and PSP. As of June 30, 2009, the high-powered and relatively high-priced console had interchange 23.8 million units worldwide since its November 2006 launce.(Thorsen, 2009 no page)Thorsen (2009), also cited in the Game Spot, The PSP, which launched in 2004 (Japan) and 2005 (all other territories), had sold 55.9 million units as of the end of Sonys last financial quarter. On the contrary, Nintendo (2009b, pp9) reported NDS and Wii had sold 107.75 million units and 52.62.million units since it launched to the June, 09 respectively. Moreover, appendix 2 illustrates the sales of the four game consoles in the three main markets (Japan, United ground and United States). To sum up, the purpose of this essay is to highlight some main differences and similarities between SCE and Nintendo, it has been seen th at even though SCE and Nintendo produce the same types of products, they have the diametrical way on designing their products and expanding their business. In terms of evaluating the circumstance of the two corporations it has emerged from the discussion above that Nintendo occupied much more market share and it is in a stronger financial position than SCE. Given the current economic climate, Nintendo therefore is the video game development company which would suffer the least economic loss.ReferencesBrightman.J (2008) Wii U.S. installed base now leads Xbox 360 by almost 2 million (Online) Retrieved from http//www.gamedaily.com/articles/news/wii-us-installed-base-now-leads-xbox-360-by-almost-2-million Assessed 24 October 2009Curmudgeon Gamer (2007) Nintendo DS vs. Sony PSP game pricing update (Online) Retrieved from http//curmudgeongamer.com/2007/04/nintendo-ds-vs-sony-psp-game-pricing.html Assessed 22 October 2009Famistu (2009) Revenue of Japan video game industry was almost 582.6 1 billion yens (In Japanese) (Online) Retrieved from http//www.famitsu.com/game/news/1221045_1124.html Assessed 24 October 2009Harris.C (2004) Official Nintendo DS launch inside information (Online) Retrieved from http//uk.ds.ign.com/articles/549/549919p1.html Assessed 23 October 2009IGN (2004) Japanese price and date set (Online) Retrieved from http//uk.psp.ign.com/articles/560/560947p1.html Assessed 22 October 2009IGN (2006) E3 2006 The net word on playstation (Online) Retrieved from http//uk.ps3.ign.com/articles/709/709973p1.html Assessed 22 October 2009Kiyoshi Takenaka (2007) UPDATE 2-Nintendo sets $85 bln high score, convey to Wii, DS (Online) Retrieved from http//www.reuters.com/article/companyNewsAndPR/idUST30751820071015 Assessed 10 November 2009Martin, M (2009) Console installed base reaches 22m in UK (Online) Retrieved from http//www.gamesindustry.biz/articles/console-installed-base-reaches-22m-in-uk Assessed 24 October 2009Nintendo (2009a) Company History (In Japanese) (Online) Retrieved from http//www.nintendo.co.jp/ merged/outline/index.html Assessed 21 October 2009Nintendo (2009b) amalgamated Financial Highlights pp9 (Online) Retrieved from http//www.nintendo.co.jp/ir/pdf/2009/090730e.pdfpage=23 Assessed 24 October 2009Plunkett, L (2009) Sony negotiation Playstation lifetime sales, PSN revenue (Online) Retrieved from http//kotaku.com/5340392/sony-talk-playstation-lifetime-sales-psn-revenue Assessed 21 October 2009Sanders, K and Casamassina, M (2006) US Wii price, launch date revealed (Online) Retrieved from http//uk.wii.ign.com/articles/732/732669p1.html Assessed 23 October 2009SCE (2009) Company Profile (Online) Retrieve from http//www.scei.co.jp/corporate/index_e.html Assessed 21 October 2009SCE (2004) PSP enters the market on December 12, 2004 at 19,800 Yen in Japan (Online) Retrieved from http//www.scei.co.jp/corporate/release/pdf/041027ae.pdf Assessed 22 October 2009SCE (2006) Playstation3 Launches on November 11, 2006 in Japan (Online) R etrieved from http//www.scei.co.jp/corporate/release/pdf/060509ae.pdf Assessed 22 October 2009Thorsen.T (2009) PS3 sales almost 24 million, PSP near 56 million (Online) Retrieved from http//uk.gamespot.com/news/6214693.html?om_act=convertom_clk=newstoptag=newstoptitle5 Assessed 24 October 2009