Executive Summary: Gaming Industry

Executive summary – Gaming Industry

Chaitanya Tyagi, Sudeep Janakumar, MericKansak, Ömer Emre Türkoğlu, Irina Aparina

Industry: global characteristics:

The gaming industry consist of the developers and the distributors that’s why the value system of the industry mainly focus on marketing and distribution. And as the industry mainly focuses on how well the product is promoted or marketed so the Expected Market growth rate for 2014 – 2016 is +9.32% and the profit margin will be 4 %. The industry mainly depends on social media promotion or print media promotions as the targeted consumer is very well aware of these 2 marketing structure.

Macro-environmental analysis – Europe:

Governmental legislations and regulations are the most influenced subjects on the gaming industry. Because every country has different constitution and economic strategies. Perception and approaches of people or states vary depending on cultural characteristics. Game stories and usage of technology determine the future of the company in the gaming market. Hence, research about cultural and governmental structure is important as technology departments of companies.

European Market:

5 companies rule the European region in terms of sales and revenue. And these company are mainly focusing as well as successful because of shooting games because strategy games takes more time for development. But strategy games have more amount of consumers. There are more barriers for entering the industry as comparing to the barriers for exit. In European market companies mainly are focusing on digitalization of the product to hedge the cost of production and distribution channels in different regions.

French video gaming industry: 

Germany, United Kingdom and France are the most attractive markets for Gaming industry. The most attractive one is French market - video games industry is the 2nd strongest one in France. It is possible due to the high popularity of gaming – 50% of French households own gaming console. Expected yearly growth of the gaming industry in France is 6-10%. Digital games are expected to grow and take a large share of the total video games market, while physical games sales decline. There is a sustainable growth in amount of gamers, and now the biggest part of gamers prefer to use Console games & PC/Mac games.