Take a look at an interactive chart that tracks advances in speed and power of video game consoles and arcade machines over the past forty years, and then consider that the slowest console on the chart may be the most noteworthy. Video games are a high spending priority for teen males and there are some big video games on the way to tempt them.
Faced with the rise of video games and the fall of the arcade, just a few years ago it seemed like the pinball industry seemed on its way out. Leslie Benzies, one of the driving forces behind video game series Grand Theft Auto, is suing its developers for $150m (?105.62m). Future revenue growth in hardware is expected to slow, after the successful introduction of the "next-generation" XBox360, PS3, and Wii consoles in 2006, 2007 and 2007, respectively. Casual gamers are a quickly growing segment in this market over the last few years, as publishing trends have let smaller developers release their games over the internet.
Personal Computers - Although the market is dominated by console sales, nearly any PC (produced by companies like Dell, Apple, and HP) can also be used as a gaming machine. For more information about this sub-industry's dynamics, please see the Game Consoles Wars: XBox 360 vs. Activision (ATVI) - Another large publisher, with hits such as Guitar Hero III and Call of Duty 4. The chief responsibility of publishers, other than funding development, is to operate the sales and marketing of a game. Risks surrounding publishers tend to deal with the issue of not selling the products that they have financed.
Between 2005-2007, many publishers have earned smaller margins from operations due to investment required in the new next-generation console launches, which have required larger development teams and longer development cycles, as discussed above.
Each development studio employs its own staff of game designers, producers, programmers, sound technicians, artists, and testers. In-House Developers - These are studios that are owned by a larger publisher, developing exclusively for that publisher.
Independent Developers - These studios sometimes publish independently, or for a specific platform, such as internet flash games. Typically, the console hardware makers create the initial "pull" demand, signing video game developers to create games for consumers to play. In the near term horizon till 2010, without expectations of new console introductions, the primary movers in the video game industry will be the software side players, developers and publishers. Revenue growth in the video game industry falls into two categories, software and hardware. After hardware sales top off, software title publishers harvest long-tail sales for the life of the console, typically with decreasing costs as developers become more familiar with the platform and capable with their development tools.
The increasing sophistication of video games has altered the landscape of the value-chain, with developers requiring increased funding and typical game development time spanning one to three years.


The launch of the Wii by Nintendo (NTDOY) opportunistically captured much of the casual gamer market, highlighting flaws in Sony's and Microsoft's strategy to skim hard-core gamers. Investors interested in the video game industry can invest in either publishers or hardware vendors, as few developers are publicly owned. Error creating thumbnail Desktop tower defense, a popular online flash gameTraditional video game publishers have failed to capitalize on the online casual games, including flash-based and Facebook-type games that are low-effort and higher margin due to their simplicity. Sony (SNE) and Microsoft (MSFT) have very diverse operations and their video game systems only make up a small portion of sales. The PS3 and XBox both have advanced home theater capabilities, playing DVD and other video content.
When they released their next-generation game systems, Sony and Microsoft were willing to swallow a loss per console in order to gain market share and earn royalties revenues over the life of the equipment. In 2006, Electronic Arts (ERTS), Konami (KNM), and Take-Two Interactive Software (TTWO) had the three largest market shares, with Activision (ATVI) coming in fourth.
In 2008, iPhone OS apparently comprised 1-percent of the video game market in the US, when judged by revenue; that rose to 5-percent in 2009. As for the shift in portable games consoles, it was the PSP which saw the biggest decline in the same period. When people talk about the streaming video to TV market, the most common devices discussed are smart TVs and dedicated devices like Roku and Apple TV. Video game consoles with streaming video playback capabilities account for 54% of the connected TV market. Smart TVs, or televisions with a built-in internet connection, account for 38% of the connected TV market.
Streaming devices, including Apple TV, Roku, and Chromecast, account for less than 10% of the connected TV market.
The use of game consoles as streaming TV devices isn't restricted to the very young.A A Deloitte survey showed that video game console owners in their teens and twenties were the most likely to list streaming video to TV as one of their top activities, but the activity was surprisingly popular among older demographics, too. Video game consoles come with far more computational horsepower than typical streaming devices and smart TVs, which allows developers to create immersive and unique connected TV experiences. Looks at how many households own gaming consoles and what percentage of them use the device for TV streaming. Explores what advantages gaming consoles offer for immersive streaming experiences as compared to smart TVs and devices like the Apple TV.
Video game consoles are far more important in the TV streaming market than they get credit for. While Netflix remains the dominant provider of paid alternative TV services, Amazon Instant Video is gaining traction with consumers, according to survey results released in November by ChangeWave Research.
Marketing, advertising, communications & public relations trends, statistics, charts, graphs, infographics, presentations, and video that are not published to the e-Strategy Internet Marketing Blog or to eStrategy TV.


David Erickson, VP of Online Marketing at Minneapolis Public Relations firm, Karwoski & Courage.
Ronda Rousey and a host of other women fighters are in EA Sports UFC and the sequel that released in March. If you adhere too closely to the source, you run the risk of churning out a stale product and potentially alienating general audiences who are not familiar with the game. The large development costs associated with hiring, maintaining, and paying developers make each title risky. A Thirty-two percent of console owners between 31 and 47 cited streaming movies or shows from services like Netflix or Hulu as one of their top three game console activities, as did 21% of thoseA between 48 and 66 years old.
For example, viewers can click through baseball stats as they stream a baseball game on the Major League Baseball app, or they can use Twitch to play video games side-by-side with footage of other players navigating the same game. Sign up now to receive full access to all our analysis, reporting, and downloadable charts on the mobile, e-commerce, payments, and digital media industries. Among respondents who watch paid internet, TV, and video content, 82% in September said they used Netflix, down slightly from 84% in February. In December 2010, ChangeWave found that 91% paid for online video content from Netflix, compared to 7% from Amazon. These actually comprise the vast majority of the global connected TV market, according to a new report from BI Intelligence. During those 7 months, though, the proportion saying they use Amazon Instant Video grew by almost 30%, from 17% to 22%.
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The Wii has taken market share from its competitors, selling more units per month than any other console since its release.[4] Despite launching one year after the XBox 360, the Wii has approximately the same install base at the end of 2007, as seen below.
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