Video Game Industry
PlayStation 4, PlayStation Vita, PlayStation Portable.
In recent years , A quick development of the global gaming industry that resulted in increasing the sales worldwide amounting to 70 billion dollars in 2014 and it’s expecting to grow more and more to 89 billion in 2018 and at the same time , there is an increase in the number of video gamers …show more content…
As of 2014, Sony is the market leader, with combined PlayStation sales amounting to over 20 million units. (Global unit sales of current generation video game consoles from 2008 to 2014, 2015)
Factors Affecting Demand and Supply:
The PlayStation 3 has plenty of different factors that could be taken into account when determining the supply and demand curve.
A shortage of PlayStations was announced by its producers which was a surprise to all of people. Most individuals thought they would be able to buy a PS3 as they wish, so due to Sony not producing enough PS3 consoles to adequately meet the demand of PS3 shoppers, they ended up having a shortage.
The determinants that help shifting the demand curve are not taken into the accounts. PSP which is a related good and is one of the determinants.
A second reason behind this shortage is due to the presence of complements to the product and , Sony scheduled several big game releases that would come out around that time, and a few of these games were “Uncharted 2,” and “God of War”.
The shift of the demand curve was a result of these …show more content…
There’s a huge rivalry between Microsoft and Sony as they are fighting each other on who will get more sales, and there’s currently no new entrants to the consoles market.
Demand & Supply Curves:
This is a direct effect from Sony not releasing enough consoles for the holiday season. Since the supply (of consoles) is decreasing, the price will increase on websites such as Craigslist, and EBay because no retail stores will have them until more shipments to come in.
The price of the PS3 is going for less money on alternate selling sources (for used consoles).
The PlayStation 3 supply is increasing due to the holiday season.
Since the price is decreasing, the quantity sold will increase, however when the price increases then the demand for the consoles will decrease because people know that they would have got the PS3 for cheaper during the holidays, vice versa.
The PlayStation 3 is one of the best-selling consoles of all time, but it’s slow start and poor promotion at its launch was a reason that the device sales started badly, but by the time its sales had a great rise and the PlayStation 3 totally overtaken its opponents and dominated the consoles market for a long period in the recent