The Video Game Industry Essay

The Video Game Industry Essay

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The Video Game Industry
The video gaming industry has come a long way from the first home based gaming system since the Magnavox Odyssey. Through the decades, the video game industry has rapidly improved the technology to home gaming, and made arcades nonexistence. The major video gaming titans of today are Nintendo, Microsoft Xbox, and Sony Playstation. These three have been in war with each other the past ten years, and neither show signs of defeat. However the two leading competitors of high sales in the gaming industry are Microsoft Xbox and Sony Playstation. Both developers have been head to head on technological advancements and consumer marketing. Sony uses their advanced design of game console and their secrecy of their project to entice consumers. Microsoft however tries to direct their marketing strategy towards consumers themselves. With different marketing planning, both companies still show success. Sony and Microsoft’s entire production unit were sold out when they were released at their release date.
Sony Playstation 3
On November 24, Sony released the PlayStation 3, kicking off the latest round in the video game console wars. But this is not like the battles of the past for Sony, whose annual revenue now hinges on outselling rivals Nintendo and Microsoft. Sony doesn't seem to realize the situation it's created for itself, gambling its gaming business on a strategy that will alienate the very public that made earlier PlayStations undisputed leaders for the last decade.
Sony revealed last month that profits for the second quarter were down 94 percent to $14 million due to the recall of 9.6 million faulty laptop batteries at a cost of $432 million and the $367 million operating loss of the gaming division, attri...

... middle of paper ...


Richtel, M. (2006, November 17). Release of PlayStation 3 Becomes a Waiting
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Stiles, N. (2005, November 25). Microsoft set to lose $126 on each Xbox 360
console. Retrieved November 20, 2006, from database:

Terdiman, D. (2006, November 13). Game on: PS3, Wii finally hitting stores.
Retrieved November 19, 2006, from CNet database:

Terdiman, D. (2006, May 8). Newsmaker: PlayStation 3 playmaker. Retrieved
November 19, 2006, from CNet database:

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