The U.S. industry research firm IBIS world rated the video game industry as the 7th top fastest growing industry in the world from 2000-2016.()
Emerging Markets
The video game industry has tremendous potential to continue its strong pattern of growth throughout the coming years. A large portion of this continued growth can be attributed to major emerging markets in the video game industry that until recently have been inaccessible for various reasons. A few of these major emerging markets in this industry are China, Russia, and South America, mostly due to political or financial restrictions. On January 6th 2014 China lifted a ban on video game consoles, a ban that for 14 years made it illegal to purchase any major video game system. While …show more content…
The traditional business model for selling video game consoles are extremely costly to the manufactures in the first few years of releasing a new console. During the initial release of the PS3 console Sony sold each console for an estimated loss of $241.35 per console.( http://arstechnica.com/gaming/2006/11/8239/) Majority of profits from this model comes from software sales, compatible devices, and subscription sales. As technology advanced these systems become cheaper and more efficient to produce allowing the manufacture to eventually sell the console for cheaper while making a profit on each sale. With the ever changing market and growth in the smart phone market, the video game industry has had to change and evolve to satisfy needs of existing gamers, as well as to attract new potential clients. With the smart phone industry growing rapidly, the video game industry now had a new means to reach the potential clients but these new clients needed a new business model in order to be reached. Video game software companies started producing games that were free to install and play. To make money on these games they would sell in game merchandise for real world cash allowing the customer to pay as little or as much as they desire. These free games reach more people allowing a greater opportunity for money to be spent on their game increasing their …show more content…
Microsoft, Sony, Nintendo, and many others are pushing the boundaries of how we interact with virtual space and how consumers immerse themselves in this space. Microsoft has developed a high definition motion tracking camera called the Kinect with depth perception, heat tracking, night vision, and audio recognition. The Kinect was developed to allow the person playing the video game to interact within the game using only their hands, movements, and voice. This technology is now being used by scientist, businesses, and government to push the way we interact with the real world around us. The government is developing multiple programs with the Kinect. The Kinect is allowing them to create a helicopter with voice activated commands and gesture recognition to control the heads-up display while flying the aircraft.(http://mashable.com/2012/06/19/military-kinect/) Sony has created a virtual reality headset named “Morpheus”. This headset tricks the brain in believing you are in the game and creates a full emersion experience. Virtual reality has already been adopted by the U.S. military to train troops in multiple situations including combat, medic training, and flight and vehicle simulators.( http://mashable.com/2012/06/19/military-kinect/) Video game technology is being used for more than just video
Emerging Markets
The video game industry has tremendous potential to continue its strong pattern of growth throughout the coming years. A large portion of this continued growth can be attributed to major emerging markets in the video game industry that until recently have been inaccessible for various reasons. A few of these major emerging markets in this industry are China, Russia, and South America, mostly due to political or financial restrictions. On January 6th 2014 China lifted a ban on video game consoles, a ban that for 14 years made it illegal to purchase any major video game system. While …show more content…
The traditional business model for selling video game consoles are extremely costly to the manufactures in the first few years of releasing a new console. During the initial release of the PS3 console Sony sold each console for an estimated loss of $241.35 per console.( http://arstechnica.com/gaming/2006/11/8239/) Majority of profits from this model comes from software sales, compatible devices, and subscription sales. As technology advanced these systems become cheaper and more efficient to produce allowing the manufacture to eventually sell the console for cheaper while making a profit on each sale. With the ever changing market and growth in the smart phone market, the video game industry has had to change and evolve to satisfy needs of existing gamers, as well as to attract new potential clients. With the smart phone industry growing rapidly, the video game industry now had a new means to reach the potential clients but these new clients needed a new business model in order to be reached. Video game software companies started producing games that were free to install and play. To make money on these games they would sell in game merchandise for real world cash allowing the customer to pay as little or as much as they desire. These free games reach more people allowing a greater opportunity for money to be spent on their game increasing their …show more content…
Microsoft, Sony, Nintendo, and many others are pushing the boundaries of how we interact with virtual space and how consumers immerse themselves in this space. Microsoft has developed a high definition motion tracking camera called the Kinect with depth perception, heat tracking, night vision, and audio recognition. The Kinect was developed to allow the person playing the video game to interact within the game using only their hands, movements, and voice. This technology is now being used by scientist, businesses, and government to push the way we interact with the real world around us. The government is developing multiple programs with the Kinect. The Kinect is allowing them to create a helicopter with voice activated commands and gesture recognition to control the heads-up display while flying the aircraft.(http://mashable.com/2012/06/19/military-kinect/) Sony has created a virtual reality headset named “Morpheus”. This headset tricks the brain in believing you are in the game and creates a full emersion experience. Virtual reality has already been adopted by the U.S. military to train troops in multiple situations including combat, medic training, and flight and vehicle simulators.( http://mashable.com/2012/06/19/military-kinect/) Video game technology is being used for more than just video