A growing market during a recession
Here is a template to upload driving forces.
Description:
Although a recession in the year 2001 the video game industry generated over $4.3 billion in revenues. In the year 2004 this amount was $25 billion. And optimistic prospects predict a revenue over the $100 billion. It seems that the recession and the weak economy in most part of the world do not influence the revenues of this industry in a negative direction. The reason is simple. People need entertainment. In these days with a high mental pressure people need some entertainment to calm down. People used to read a book, watch television, visit the cinema etc. But nowadays games are the substitute. This implies that people prefer spending money on a video games what means cash for the video gaming industry.
Enablers:
different forces enable the growth of the gaming market:
- Heavy competition between Microsoft, Sony and Nintendo force them cut down the prices of the consules. The low price induce consumers to buy a consule. The sales of consules are a crucial factor because sales of consules means automatically sales of games.
- The primary target for games were male. Now a change is visible towards female players. Their spendings constitute a big part of the total revenue for this industry.
- The Internet makes online gaming possible. Consumers buy not a game to play it alone but together with friends nowadays.
Inhibitors:
Several factors inhibits the growth of the gaming industry:
- Scientific evidence has proven that violence in video games has a negative effect on the behavior.
- Goverments can reject video games. In countries like China certain video games are forbidden to play.
- Illegal copies of video games means a lost of revenues.
Paradigms:
Video games were seen as a toy for computer freaks who play a video game day and night. This view has been replaced that video games is meant for everyone regardless the gender and the age. Everyone can use them as a form of entertainment