StrategicManagement 2012WS Geiger TUTL CaseStudies (Verschoben)

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    intman.wiwi.uni-kl.de

    Fachbereich

    Wirtschaftswissenschaften

    2012 Technische Universitt Kaiserslautern Chair of International Management

    Wednesday, 28th of November 2012

    Case Study:

    Rivalry in Video Games

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    Presentations Outline

    History of the Video Game Industry since 1972

    Market-Based-View vs. Resource-Based-View

    Market-Based-View of the Video Games Market

    Summary

    Outline Timeline MBV RBV MBV of Market Summary

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    Topic focus

    Focus on stationary video consoles

    Distribution of their games

    Development of this market

    No focus on

    portable consoles

    personal computers

    mobile phones and handhelds

    tablets

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    arcade video games in 1970s

    Atari:

    - first supplier

    - massive losses

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    Nintendo: NES (1985)

    license agreement Atari

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    SEGA: Genesis (1988)

    Nintendo: SNES (1991)

    Splitting of the market

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    Sony: Playstation (1994)

    Nintendo: N64 (1996)

    three-way-battle:

    SEGA Nintendo Sony

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1998-2005

    1995-1998

    Sega: Dreamcast (1998) withdrawal from the market

    Sony: Playstation 2 (2000)

    Microsoft: XBOX (2002)

    three-way-battle:

    Microsoft Nintendo Sony

    Outline Timeline MBV RBV MBV of Market Summary

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    History of the Video Game Industry since 1972

    19721985

    1986-1991

    1992-1995

    since 2005

    1999-2005

    1995-1998

    Outline Timeline MBV RBV MBV of Market Summary

    Microsoft: XBOX 360 (2005) Sony: Playstation 3 (2006/2007)

    Nintendo: Wii (2006)

    three-way-battle:

    Microsoft Nintendo Sony

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    Market-Based-View vs. Resource-Based-View

    Market-Based-View:

    Outside In: unique product-market combination

    focus: analysis of opportunities and threats

    entry barriers to prevent new competitors

    Resource-Based-View:

    Inside Out: unique resources

    focus: strength and weaknesses

    sustainable competitive advantages

    Outline Timeline MBV RBV MBV of Market Summary

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    Technology of the consoles

    1998-2004

    Opportunities:

    Replace the pc

    Multiplayer / Lan / Internet

    Technology standards (Blue Ray)

    Threats:

    Production and developing costs

    Distribution of the internet Complex development difficult to approximate

    Outline Timeline MBV RBV MBV of Market Summary

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    Technology of the consoles

    Since 2004

    Opportunities:

    Sensors for new controllers

    Updates to generate persistence

    Real-life gaming

    3D

    Threats:

    Higher complexity Tv development

    Outline Timeline MBV RBV MBV of Market Summary

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    Technology of the consoles

    Company decisions

    Sony:

    Performance that exceeded any PC (for gaming)

    Cinematic-style graphics

    DVD player

    Internet connectivity

    Microsoft:

    The most powerful games console ever

    Similar specification as Sony Playstation 2 and Sony Playstation 3

    Nintendo:

    Nintendo Game Cube was tailing both Microsoft and Sony

    Wii less complex graphics and new controllers

    Outline Timeline MBV RBV MBV of Market Summary