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Companies in this industry create video games and other entertainment software. Major companies include Activision Blizzard, Electronic Arts, and Take-Two Interactive (all based in the US); Konami, Nintendo, and Sega (Japan); Ubisoft (France); and King Digital (Ireland).
Global video game revenue from all channels, including mobile games on smart phones and tablets, totals about $72 billion, according to PricewaterhouseCoopers. Skyrocketing adoption of mobile devices and expanding markets for video games could boost global industry sales to $90 billion by 2020. Top video game markets include China, the US, and Japan.
The US entertainment and games software industry includes about 450 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Demand is driven primarily by personal income and gamer demographics. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies have economies of scale in manufacturing, marketing, distribution, and selling. Small companies can compete successfully by developing creative products.
Computer and video games compete as a leisure-time activity with TV, movies, music, the internet, and other forms of electronic and nonelectronic entertainment.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major entertainment and games software product segments include applications for gaming consoles, handheld devices, and personal computers. Console software is made for dedicated gaming devices that work with TVs; major platforms include Microsoft's Xbox, Nintendo's Wii, and Sony's PlayStation. The handheld segment includes ...
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