Video game industry

Sony Computer Entertainment Ltd. Versus Nintendo Ltd.

For many old ages, video game industry has played a cardinal function in the growing of economic sciences of some counties. Both Sony Computer Entertainment ( SCE ) and Nintendo are two representatives of this industry and they besides are the chief rivals in this ferocious market. Previous research has shown that SCE had dominated the picture game console market since Playstation2 launched with 138 million unit gross revenues ( Plunkett, 2009 ) . Nintendo nevertheless occupy much selling portion after their new coevals game console Wii and Nintendo Dual Screen ( NDS ) succeeded in this industry. This essay will compare and contrast SCE and Nintendo in several facets and this paper which based on secondary resources without sole information. Therefore, it will get down via discoursing the features of merchandise produced by these two companies, later a treatment refering monetary value factors between the merchandises of two corporations, for illustrations the development cost and monetary value of package. Finally, this essay will concentrate on the selling portion and gross revenues.

Nintendo is a transnational corporation founded on 23 September, 1889 by Fusajiro Yamauchi which bring forthing handmade hanafuda cards. Then the company had tried several little concerns before they developed into a picture game company, for illustration as a cab company and love hotel ( Nintendo, 2009a ) . Consequently, Takenaka ( 2007 ) points out Nintendo became Japan ‘s 3rd most valuable listed company by developing game console and package, with a market value of over 85 billion USD. Nintendo on the other manus is the bulk proprietor of the Seattle Mariners, a Major League Baseball squad. Unlike Nintendo, SCE is a wholly-owned subordinate of Sony which was established on 16 November, 1993 for managing the Research and Development, production and gross revenues of both hardware and package for Playstation ( SCE, 2009 ) . SCE presently has three chief central office around the universe: Japan which controls operations in Asia ; USA and UK response to command operation in North America and Europe severally.

SCE and Nintendo have their ain manner to introducing for doing their merchandise attractive in order to lasting in the competitory market. Therefore, harmonizing to the proclamations about new consoles of SCE in 2004 and 2006, Playstation Portable ( PSP ) and Playstation3 has launched in 12 December 2004 and 11 November 2006 severally. Peoples were amazed about the high engineering in the hardware of the two consoles, for case, PS3 has constitutional Blu-Ray Disc ( BD ) participant and cell processor, and PSP has UMD phonograph records participant and 3D image processor. BD is the new criterion of phonograph record which has adequate infinite to salvage the high definition media files. As a consequence, the package launched for PS3 and PSP, peculiarly video games evolved by antic screen. Unlike SCE, Nintendo did non put much to develop riotous engineering in order to bettering the hardware but making new game manner. The merchandise characteristics of Wii are the gesture sensitive remote and NDS with touch screen and internal mike. Therefore, most of package launched on Nintendo console has conveying the characteristics in full drama. For case, the Wii Fit is the instruction plan about Yoga and it is suited for people who want learn yoga at place, particularly ladies. Furthermore, My Word Coach DS and SekainoGohan Shaberu DS are the package for learning user linguistic communication and cookery severally.

While, Nintendo ‘s merchandise no affair consoles and package are well cheaper than SCE ‘s. The important trade name image of SONY and the dearly-won latest engineering for consoles determine SCE ‘s merchandise is expensive. There were two hardware constellations announced for PS3 in E3 2006: a 20GB theoretical account and a 60GB theoretical account, ab initio priced at 499 USD and 599 USD severally ( IGN, 2006 ) . Furthermore, PSP is the first venture of SCE in the pocket game console market with monetary value planing scheme excessively. The monetary value of the base theoretical account in first proclamation of it was 19800 hankerings about 181 USD in 2004 ( IGN, 2004 ) . Then, in conformity with appendix 1 ( Curmudgeon Gamer, 2007 ) , the tabular array reveals the comparing of the mean game monetary value between DS and PSP in Mid-Nov 2006 and Mid-Apr 2007 severally. The tendencies of mean game monetary value for PSP and DS both were experienced a reduced during that period of clip. Besides, the mean game monetary value of PSP is more expensive than DS by 2-3 USD per game. However the monetary value of Nintendo ‘s consoles wii and NDS are much lower than PS3 and PSP. Compared with PS3, the Wii launched in United States in November 2006 at 249.99 USD about half of PS3 ( Sanders and Casamassina, 2006 ) . Furthermore, harmonizing to Harris ( 2004 ) Nintendo announced the NDS would be released in North America in November, 2004 for 149.99 USD.

Nintendo already had occupied much more selling portion than SCE with the successful scheme and the attractive characteristics of consoles. Although SCE had invested important saddle horse of money for developing their new coevals game console.

Sony released its life-to-date gross revenues for the PS3 and PSP. As of June 30, 2009, the high-octane and comparatively costly console had sold 23.8 million units worldwide since its November 2006 sand lance.

( Thorsen, 2009: no page )

Thorsen ( 2009 ) , besides cited in the Game Spot, “ The PSP, which launched in 2004 ( Japan ) and 2005 ( all other districts ) , had sold 55.9 million units as of the terminal of Sony ‘s last financial one-fourth. ” On the contrary, Nintendo ( 2009b, pp9 ) reported NDS and Wii had sold 107.75 million units and 52.62.million units since it launched to the June, 09 severally. Furthermore, appendix 2 illustrates the gross revenues of the four game consoles in the three chief markets ( Japan, United Kingdom and United States ) .

To sum up, the intent of this essay is to foreground some chief differences and similarities between SCE and Nintendo, it has been seen that even though SCE and Nintendo produce the same types of merchandises, they have the different manner on planing their merchandises and spread outing their concern. In footings of measuring the circumstance of the two corporations it has emerged from the treatment above that Nintendo occupied much more market portion and it is in a stronger fiscal place than SCE. Given the current economic clime, Nintendo therefore is the video game development company which would endure the least economic loss.

Mentions

  • Brightman.J ( 2008 ) Wii U.S. installed base now leads Xbox 360 by about 2 million ( Online ) Retrieved from hypertext transfer protocol: //www.gamedaily.com/articles/news/wii-us-installed-base-now-leads-xbox-360-by-almost-2-million [ Assessed 24 October 2009 ]
  • Curmudgeon Gamer ( 2007 ) Nintendo DS vs. Sony PSP: game pricing update ( Online ) Retrieved from hypertext transfer protocol: //curmudgeongamer.com/2007/04/nintendo-ds-vs-sony-psp-game-pricing.html [ Assessed 22 October 2009 ]
  • Famistu ( 2009 ) Gross of Japan video game industry was about 582.61 billion hankerings ( In Japanese ) ( Online ) Retrieved from hypertext transfer protocol: //www.famitsu.com/game/news/1221045_1124.html [ Assessed 24 October 2009 ]
  • Harris.C ( 2004 ) Official Nintendo DS launch inside informations ( Online ) Retrieved from hypertext transfer protocol: //uk.ds.ign.com/articles/549/549919p1.html [ Assessed 23 October 2009 ]
  • IGN ( 2004 ) Nipponese monetary value and day of the month set ( Online ) Retrieved from hypertext transfer protocol: //uk.psp.ign.com/articles/560/560947p1.html [ Assessed 22 October 2009 ]
  • IGN ( 2006 ) E3 2006: The concluding word on playstation ( Online ) Retrieved from hypertext transfer protocol: //uk.ps3.ign.com/articles/709/709973p1.html [ Assessed 22 October 2009 ]
  • Kiyoshi Takenaka ( 2007 ) UPDATE 2-Nintendo sets $ 85 bln high mark, thanks to Wii, DS ( Online ) Retrieved from hypertext transfer protocol: //www.reuters.com/article/companyNewsAndPR/idUST30751820071015 [ Assessed 10 November 2009 ]
  • Martin, M ( 2009 ) Console installed base reaches 22m in UK ( Online ) Retrieved from hypertext transfer protocol: //www.gamesindustry.biz/articles/console-installed-base-reaches-22m-in-uk [ Assessed 24 October 2009 ]
  • Nintendo ( 2009a ) Company History ( In Japanese ) ( Online ) Retrieved from: hypertext transfer protocol: //www.nintendo.co.jp/corporate/outline/index.html [ Assessed 21 October 2009 ]
  • Nintendo ( 2009b ) Consolidated Financial Highlights pp9 ( Online ) Retrieved from hypertext transfer protocol: //www.nintendo.co.jp/ir/pdf/2009/090730e.pdf # page=23 [ Assessed 24 October 2009 ]
  • Plunkett, L ( 2009 ) Sony negotiations Playstation lifetime gross revenues, PSN gross ( Online ) Retrieved from: hypertext transfer protocol: //kotaku.com/5340392/sony-talk-playstation-lifetime-sales-psn-revenue [ Assessed 21 October 2009 ]
  • Drum sanders, K and Casamassina, M ( 2006 ) US Wii monetary value, launch day of the month revealed ( Online ) Retrieved from hypertext transfer protocol: //uk.wii.ign.com/articles/732/732669p1.html [ Assessed 23 October 2009 ]
  • SCE ( 2009 ) Company Profile ( Online ) Retrieve from: hypertext transfer protocol: //www.scei.co.jp/corporate/index_e.html [ Assessed 21 October 2009 ]
  • SCE ( 2004 ) PSP enters the market on December 12, 2004 at 19,800 Hankerings in Japan ( Online ) Retrieved from hypertext transfer protocol: //www.scei.co.jp/corporate/release/pdf/041027ae.pdf [ Assessed 22 October 2009 ]
  • SCE ( 2006 ) Playstation3 Launches on November 11, 2006 in Japan ( Online ) Retrieved from hypertext transfer protocol: //www.scei.co.jp/corporate/release/pdf/060509ae.pdf [ Assessed 22 October 2009 ]
  • Thorsen.T ( 2009 ) PS3 gross revenues about 24 million, PSP near 56 million ( Online ) Retrieved from: hypertext transfer protocol: //uk.gamespot.com/news/6214693.html? om_act=convert & A ; om_clk=newstop & A ; tag=newstop ; rubric ; 5 [ Assessed 24 October 2009 ]