The Economics Behind Video-Game Console Sales The previous generation of consoles known as the seventh generation had three main contenders:
The Rise of Mobile Games: Since we recently added mobile gaming to our collections, it has been a topic of much discussion among us. The past few years have seen the video game industry facing some major changes in terms of products, prices and income.
Specifically, the late s and early s have been characterized by the rise of the mobile game. While early mobile games were simplistic and difficult to access, modern games take full advantage of portable technologies like smart phones and tablets.
They have improved dramatically in terms of graphics and mechanics, span many genres, and target very broad audiences. So what factors have contributed to this dramatic rise? Players used the arrow keys to steer a small snake around the screen and had to avoid obstacles, walls, and running back into the snake itself.
The goal was to eat numbers that appeared randomly across the screen.
As they ate more, however, the snake grew longer, making it harder for the player to avoid their own tail. However, portable games were held back by technology; graphing calculators were very expensive. And while technology steadily improved, games mostly stayed limited to specific portable systems like Economic factors about nintendo Nintendo Gameboy or the PlayStation Portable.
Changing Technology The s saw massive improvements in cell phone technology, developing mobile devices that were actually capable of handling games. However, the earliest models, such as Blackberries and PDAs, were originally marketed as business tools rather than toys, limiting their potential for game developers.
This redefined the technology in broader terms, and the iPhone took off.
With the changing perception of phones as a technology for everyone, the rapid spread of the iPhone, and of course the development of its competitors, a new possibility for game development emerged.
First, a whole new range of potential players were made available through smart phones, and they quickly outnumbered traditional gamers. Through this dispersion, mobile games have dramatically increased market size. Rather than tying small groups of interested parties into a living room TV set, mobile games travel along on road trips or commutes, and fit into waiting rooms or the space between meetings.
This high level of accessibility and portability has helped attract people who would not traditionally consider themselves to be gamers, broadening potential audiences. Second, smart phones offered new distribution mechanisms that saved producers significant amounts of money. Rather than packaging games on CDs for physical distribution, they could be downloaded easily via cellular or Wi-Fi networks.
When the Apple App Store opened indevelopers quickly realized its potential. The ease of distribution led to an impressive surge in inexpensive, simple to play games. Furthermore, mobile games are easier toself-publish, while physically distributed games cost money to copy and transport, and digitally-distributed console or PC games often face tough restrictions from established publishers.
Therefore, distribution potential was a large draw for game developers; they could obtain wider audiences than ever before, and they did so at lower costs. Not only are mobile games easier to distribute than more traditional games, but they are also less expensive to develop overall.
This is another reason for their rapid success. Because mobile games do not have the capacity for detailed cinematic graphics, they rely on other characteristics to draw in audiences.
Innovative mechanics or fun backstories are, for instance, commonly appealing traits. However, these traits are easier to code than detailed graphics are, and therefore can be developed by small teams.
This means fewer people needed to run a company and lower overhead. Mobile games also require less code overall, speeding up their production times. This made entry into the mobile sphere far more attainable for small developers, allowing the market to grow rapidly.
Over the past few years, changing funding patterns have also contributed to the continued growth of the mobile industry.
People who have a creative suggestion but little funding can turn to crowdsourcing for help. Because mobile games are not extraordinarily expensive to produce, potential developers need obtain a relatively low level of excitement about their product in order to bring it to market.
Therefore, although the market is flooded with titles, there are many opportunities through which parties can still enter into it and potentially obtain success.
Stagnation in Traditional Games Low development costs and available funding have helped ensure that the mobile industry remains fluid, changing in line with the expectations of the audience.
This has also proved to be an advantage as more traditional games display difficulty in adapting.
The spread of the smartphone has coincided with the longest video game console lifecycle in the history of gaming; the PlayStation 3, Xbox and Nintendo Wii, launched around the same time as the App Store, are only starting to be replaced now. Therefore, mobile technology has been able to make competitive strides in terms of its offerings.
Mobile devices typically get upgraded with shiny new hardware every year. Many large studios rely on a few popular blockbuster titles as their primary source of income. Of these, almost all are sequels or established franchises.Nintendo further launched the Nintendo DS devices in followed by the Nintendo DS I the most recent the Nintendo 3DS version enabling players to play virtually on 3D platforms without the need of any glasses, the release of the 3DS was on and drifted a huge success (Yahoo).
Macro-economic factors: There are a lot of macro environmental factors that affect Telfin performance though emphasize has been given on the important factors. Economic factors like current and anticipated economic growth, interest rate, inflation, cost of labor, disposable income and distribution of income etc collectively comprise economic environment.
Technological Factors: Innovation R&D- Technology, particularly technological innovation is a critical factor in the video game console market, and the leading competitors Microsoft, Sony, Nintendo have significant R&D invested in technology improvements.5/5(3).
Nintendo Co. said its operating loss nearly doubled in the company's fiscal first quarter from a year earlier, deepening doubts about the Japanese videogame maker's ability to reverse its tumbling. Nov 19, · The Economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them.
The Nintendo Wii was designed more for recreational gaming than for hardcore gaming, but in past years it has at times outsold the other consoles.
The current generation of gaming consoles is the.