Characteristic and performance of the video game Industry Essay

A detailed analysis of the video games industry, the relationship between the console, the developer and the gamer and the case studies of Nintendo, Sony and Microsoft has conclusively proved the hypothesis that a symbiotic relationship exists in the video games industry between the console, developer and the consumer which impacts on the overall growth and performance of the business and will also have an effect on future trends. A survey of data analysis will reveal that there are excellent prospects for growth of the console video gaming industry despite threats from other areas of the same business such as online and mobile gaming. The details of the research outcome and the salient conclusions and recommendations are as per succeeding paragraphs. The overall growth of video and computer games world wide is likely to grow from $ 27,000 million to approximately $ 54, 000 million or double during a period of three years from 2005 to 2008. The console video games industry is set to grow from $ 15,000 million in 2005 to over $ 20, 000 million in 2008. This is a growth of over 30 percent which is likely to surpass the growth in all other segments of entertainment. This growth is driven by the popularity of console games in general as well as certain technological factors such as development of online console gaming facilitated by upgraded consoles and broadband connections which can facilitate easy transfer of images and videos. Apart from this economic factor, there are other profound changes which will come about in society as predicted by Doug Lowenstein who has indicated that it would transform the total social and cultural thinking in the years ahead. (Conference, 2000). The numerous voices raised against the growth of video games and their influence on children in America has decried the growth of this industry. Such protests and developments will certainly affect the growth of the video industry and it is likely to create more benign games in the future. Of greater concern to social scientists is the inculcation of hyper competition and deviant sexual values in children due to games. (Squire, 2002). This issue is likely to place pressure on the gaming industry to ensure that it follows the norms set by bodies such as the industry content regulator, Entertainment Software Rating Board (ESRB) in America. Another important facet is content creation and retailing online. This mode will develop at much faster pace than at present. This will enable greater participation of gamers and will consolidate the existing relationship between the console, the developer and the gamer. Technology as the MMOG will further boost the growth of the industry as well as the relationship between the stake holders in its growth. Relationship between console, developer and consumer The research has conclusively established a positive relationship between console, developer and consumer. Video gaming is a highly interactive process in that there has been a total shift in the relationship between the producer of goods, the developers of content and those who are partaking off that content, the gamers. This relationship has become of mutual support rather than of give and take. The mediums used for such an interaction have been consciously developed in some cases as Nintendo which started with a special magazine and has now come up with various other actions to support the developer as well as the consumer in providing the company effective inputs for development of games. A similar trend has been observed in the case of Sony and Microsoft. The growth of the internet has further added to the impetus and this will be supplemented by on line gaming which is providing gamers an opportunity to respond actively to their entertainment requirements. The response of all companies has been active in fostering this relationship. The other aspect is the active involvement of console and developers. While all major console producers have in house developers, they are including the information technology behemoth; Microsoft actively seeking the assistance from external developers. Companies have fostered special programs as Game Play Counselors and Digipen to cultivate the loyalty of the developer community along with community participation program called as NSider forum by Nintendo.