Exclusive extracts from this 66-page-long report:
- Who are the key players?
Video game companies can be separated into three types: video game pure-players which exclusively focus on the development and publishing of video game hardware, software, and related content; entertainment companies, whose operations encompass other leisure activities; and diversified groups who also market other types of consumer electronics. Leading players are mostly located in Japan, North America, and Western Europe. [...]
Groups analysed in this report include: Sony, Nintendo, Activision Blizzard, Microsoft, Electronic Arts, Square Enix, Take-Two, Ubisoft, Capcom, and Tencent.
- What are the players' strategies?
Falling market entry barriers and consumers' shift to more casual and affordable mobile games have forced most game studios to diversify their business models: leading game studios are moving away from long game development phases, premium pricing and a focus on PC and console platforms, and instead are putting greater emphasis on digital content, more frequent product releases for popular franchises (new instalments, additional content), polymorphic strategies (single content for multiple platforms), and a greater commitment to mobile gaming, often through targeted acquisitions. […]
- What are the players' key growth and profitability drivers?
Online gaming networks and communities as well as related services (streaming, eSports, subscription-based services etc.) have become major drivers of video game companies' revenues and profits by tying players more strongly to their respective ecosystems. Microsoft for instance introduced an updated home console (Xbox One X) and a new array of services such as Mixer, a live streaming platform, with the aim of seizing revenue in these fast-growing segments by leveraging its growing Xbox Live community – which today counts 53 million users – across all devices and networks. [...]