Days after E3 event end
Recommendations
With the competition in the video games industry getting more intense, the next steps of the players become of crucial importance for their positioning on the market. Due to the low product differentiation, the next market leader will be the platform provider that manages to offer much more different gaming experience. Furthermore the extra features of the consoles have to be further developed, as the producers aim to establish the consoles as the central tool for any kind of home entertainment, not just for video games playing. Important issue regarding the extra features is the fact that many of the users are not aware of them, so more information and communication with the customers is required.
The companies have to learn by the mistakes of the past and try to avoid making them again. It is of significant importance to develop a much larger library of games before the introduction of the next console, as this was proved to be a major factor for success in the past. Another factor that needs to be considered is a better control of the games and their distribution, as well as perfectly realised marketing campaigns.
As the video games audience becomes broader, the companies should make an effort to reqruit new players from the new target groups: females and older people, by creating a greater range of games, directed towards the interests of these players, and more intensive advertising. The new image of the video games as family entertainment has to be extended as well.
The possible entrance in the industry of some of the big games publisher creates opportunities for establishing of alliances. An alliance between one of the platform providers and a major publisher will give them a very strong position on the market and a sustainable competitive advantage. Thus, they will have the best chances to become the new leader of the industry.
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