Posted: October 1st, 2013

The video game industry

The video game industry is constantly rocked by changes in the general environment. On one hand, technological shifts (from console games to games being played on handheld devices) are reducing the market size of the console industry, while game designers for smart phones see an opportunity. On the other hand, the consolidation of customer choice (a socio-cultural trend) produces a concentrated desire among people to play the same games, so some brands are blockbusters (like GTA or FIFA), while others struggle.

Please write a 500 word essay with an original title where you perform a five forces analysis of the video game console industry. Which two forces are most significant in the industry, and why? Consider the case of a manufacturer of video game consoles like Microsoft’s XBox division. What would be the one key strategic recommendation you would make for the organization in light of your analysis?