Entertainment & Games Software Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 9/25/2017
SIC Codes: 7372
NAICS Codes: 511210
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Entertainment & Games Software Industry Profile

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 $91 billion, according to SuperData Research. Industry growth is expected to come from skyrocketing adoption of mobile devices, virtual reality, e-sports (multiplayer competitive video games), and expanding markets for video games. 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.

COMPETITIVE LANDSCAPE

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 Switch, and Sony's ...

 
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