I thought this would be a really fun thread to start, you know with the "Armchair
Analytics" and all... I've decided to do some research on economics and what it really means for the gaming industry. What brings success and what leads to failure? Let's look at some of the parts of economics:
Purpose- What the product is.
Target Market- The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts.
Demand- The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price.
Differentiator- What makes your product special.
Price- The balance between manufacturing cost, demand, and profit
Brand Recognition- The extent to which the general public is able to identify a brand by its attributes.
These parts are well known but what's not discussed is the economical climate. That alone could negate any number of the parts that make up the science of ecomomics. We are in a time where quality is not much of a factor anymore, it's all about function.
A product needs to cover a wide range of functions pertinent for everyday life. If you look at the most successful products today (such as IPAD, SMART TVs, Cell Phones, right down to Social Networks), you'll notice these products do more than their primary function. People want more bang for their buck and at a great price.
There is also the ease of use that needs to be factored into the equation. Apple gets away with what do because of the familiarity of their eco-system which ties into ease of use. Sure there's other tablets out there but who wants to learn their system if I don't have to?
Now apply this with the gaming industry. Microsoft and the WII had the price advantage and they knew what their Target Market was. What makes matters worse for Sony is that it was the Target Market they've created as well. The only differentiator Sony had was the plethora of games which Sony price themselves out of.
Sony in this case lost their Brand Recognition when the competition provided what they were known for for less. Their Recognition was thrown right out the window. Brand Recognition goes hand and hand with a Differentiator which ties in with price. But if the economic needs are not met (functions pertinent for everyday life), none of this would matter. So now there's an extra factor:
Economic Needs- Dictated by the times, this factor is what the consumer believes to be need during an economic period.
What will become of the gaming industry?
Analytics" and all... I've decided to do some research on economics and what it really means for the gaming industry. What brings success and what leads to failure? Let's look at some of the parts of economics:
Purpose- What the product is.
Target Market- The consumers a company wants to sell its products and services to, and to whom it directs its marketing efforts.
Demand- The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price.
Differentiator- What makes your product special.
Price- The balance between manufacturing cost, demand, and profit
Brand Recognition- The extent to which the general public is able to identify a brand by its attributes.
These parts are well known but what's not discussed is the economical climate. That alone could negate any number of the parts that make up the science of ecomomics. We are in a time where quality is not much of a factor anymore, it's all about function.
A product needs to cover a wide range of functions pertinent for everyday life. If you look at the most successful products today (such as IPAD, SMART TVs, Cell Phones, right down to Social Networks), you'll notice these products do more than their primary function. People want more bang for their buck and at a great price.
There is also the ease of use that needs to be factored into the equation. Apple gets away with what do because of the familiarity of their eco-system which ties into ease of use. Sure there's other tablets out there but who wants to learn their system if I don't have to?
Now apply this with the gaming industry. Microsoft and the WII had the price advantage and they knew what their Target Market was. What makes matters worse for Sony is that it was the Target Market they've created as well. The only differentiator Sony had was the plethora of games which Sony price themselves out of.
Sony in this case lost their Brand Recognition when the competition provided what they were known for for less. Their Recognition was thrown right out the window. Brand Recognition goes hand and hand with a Differentiator which ties in with price. But if the economic needs are not met (functions pertinent for everyday life), none of this would matter. So now there's an extra factor:
Economic Needs- Dictated by the times, this factor is what the consumer believes to be need during an economic period.
What will become of the gaming industry?