Gaming Console Market Anand Dube Dhruv Joshi Karan

Gaming Console Market Anand Dube Dhruv Joshi Karan Sobti Sudhish Warrier

A Brief History Early Second generation consoles First generation consoles 1958, Tennis for Two launched by William Higginbottom 1961, Space. War is created by 3 MIT students, Steve Russell, Martin Graetz and Wayne Wiitanen • First commercially available home gaming console launched in 1972 named Magnavox Odyssey • Atari launches Atari: PONG in 1975 which was highly successful • Coleco Telstar is launched in US in 1976 • Fairchild Channel F launches with interchangeable cartridges system 1976 • Atari launches The Atari 2600 with plug-in cartidges instead of built in games • Magnavox Odyssey 2 is launched in 1978 with removable game cartridge and speech recognition system Later Second generation consoles • Atari launches Atari 5200 in 1982 with a 16 directional controller • Coleco Vision was released in August 1982 which offered arcade like graphics and initial catalog of 12 games • Vectrex is also launched in 1982 with a built in monitor screen • Sega enters console market in 1983 with SG 1000

A Brief History Seventh Generation Consoles Sixth generation consoles • Sega launches Dreamcast in 1999 Fifth generation consoles • 3 DO was manufactured by Panasonic, • Fourth Generation Consoles • NEC enters the console market Third Generation Consoles • Nintendo debuts in 1985 with its NES which is huge success • Sega launches Sega Master System in 1985 as direct competitor to NES • Atari launches Atari 7800 in 1986, in an attempt to recapture the Asian market in 1989 and launches Turbo. Grafx 16 and offers optional CD module • SEGA Genesis is released in 1989 • Neo-Geo video game system released in 1990 by SNK • Nintendo launches SNES or Super Nintendo in 1991 • • • Sanyo and Goldstar and released in 1993 Atari launches Jaguar in 1993, first 64 bit console, to take on SNES and Sega Genesis Sega launches its 32 -bit console, Saturn in 1994 to compete with Sony Playstation which was slated to be released in 1995 Sony makes its debut in the console market in 1995 with Playstation Nintendo releases Nintendo 64 in 1996 with a built-in modem and Internet support for online gaming • Sony launches Playstation-2 in 2000 which becomes the fastest selling console in history. • Nintendo releases Game. Cube in 2001 • Software giant Microsoft jumps the console market with Xbox in 2002 • Microsoft launches Xbox-360 in 2005 simultaneously across three regions • Nintendo launches Wii in 2006, it is most successful seventh generation console. • Sony releases Playstation-3 in 2006.

Major Players Ø Atari (now only third party game title provider) Ø Microsoft Ø Nintendo Ø Sega (now only third party game title provider) Ø Sony Computer Entertainment

Market Share of 3 major players

Pricing Strategies. . Snapshot Ø Price Skimming Ø Product Form Pricing Ø Geographical Pricing Ø Psychological Pricing Ø Penetration Pricing Ø Bundle Pricing Ø Value Pricing

Pricing Strategies… § Price Skimming Retailer Price - Feb 2004 Price - Oct 2005 % Decrease per annum Amazon. co. uk £ 134. 99 £ 112. 99 11 Argos £ 148. 75 £ 114. 99 15 Currys £ 169. 99 (+ game) £ 139. 99 (+ 3 games) 12 Dabs. com £ 145. 24 £ 109. 99 16 Dixons £ 169. 99 (+ game) £ 114. 99 22 Game £ 149. 99 £ 114. 99 16 HMV £ 169. 98 (+ game) £ 114. 99 22

Pricing Strategies (Contd) üPrice Skimming and Target Audience üGeographical Pricing üPsychological Pricing üProduct Form Pricing üPenetration Pricing üValue Pricing üPrice Wars

References 1. http: //sczuber. blogspot. com/ 2. http: //www. gamingdump. com/consoleevolution. html 3. http: //www. bized. co. uk/educators/1619/business/marketing/activity/pricingstrat. htm 4. http: //tech. yahoo. com/blogs/null/151373 5. http: //www. bloomberg. com/apps/news? pid=newsarchive&sid=aqf 8 U 0 V 0 Ouj 4 6. http: //www. startbuttonpress. com/wii-console-controller-bundle-pricingaussienintendo-news-roundup/ 7. http: //www. shopbot. ca/pp-microsoft-xbox-360 -pro-holiday-bundle-microsoftprice-43203. html 8. http: //74. 125. 153. 132/search? q=cache: NBVuz 4 Kc 3 s. J: www. smartcomputing. com/editorial/article. asp%3 Farticle%3 Darticle s/archive/r 1003/03 r 03. asp%26 guid%3 D+nintendo+%22 value+pricing%22+ DVD&cd=4&hl=en&ct=clnk&gl=in 9. http: //news. cnet. com/8301 -17938_105 -10207985 -1. html

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