Video Game Industry Dominant Traits

These factors basically highlight what the industry’s landscape is like. The video game industry comprised of the following dominant traits.

·      Technology Advancement

Pace of technological change existed as manufactures invested heavily in R&D and new technology to improve the product features. This is because the technology is constantly changing i.e. 8bit, 16bit, 32 bit, and 64 bit consoles, portable handheld systems, CD based systems replaced cartridge based systems, and personal computers.

·       Degree of Product Differentiation

Product differentiation between the competing companies in the video game industry was quite low as when one company came up with a new product, others rapidly imitated or launched improved products of their own.

  

     Market Size & Growth Rate

Gaming industry had become quite significant due to the rising demand for video-games among consumers. Therefore, the market size was seen to be growing at a double digit rate i.e. 22.1%. 

·       Scope of Competitive Rivalry

Scope of competitive rivalry is both domestic as well as global. However, the key players of the industry focused more on domestic distribution although global expansion of the manufacturers included countries like United States, Japan, Europe, and various other countries.

·       Product Innovation

Product innovation was one of the most important factors in the gaming industry since the industry is characterized by rapid product innovation and a way to overtake the rivals by being first in the market.