Evolution of Gaming Industry

1) How did the home video games industry evolve from 1989 to 1991?

a) During the year 1989, the home made video games industry was started to undergo a slow transformation from their old graphical feature to more attractive interface in graphics.

b) The Nintendo’s Famicom became the prime reason to change the dynamics of the industry by introducing the cost effective and advanced graphics effectively.

c) The demand for the video games increased as more retail shops were interested in selling the video games in their outlets.

d) Apart from the traditional video games, during April 1989 handheld monochrome video game system was introduced to capture the market beyond pre-teenagers to older children and adults. Due to this new hand geld device the sales in U.S. increased to 2 million – 3 million units.

e) The licensing system for the cartridge of the video game was started by the Nintendo with a intention of creating monopoly in the video game industry.

f) The licensing system for developing video games was approved in the U.S. entertainment industry and it created the emphasis of innovation and R&D.

g) The gaming industry started to use specialized chips from the electronics manufacturer to improve the quality of the games. The demand & sales of the semi-conductor devices noticed considerable increase due to the gaming industry.

h) The outsourcing of games have become the norm for the companies so that they can better concentrate on the design of cartridge system which enables the games more lively.

i) From the case, we can understand that the companies charged royalties upto 20% for creating games for their system.

j) The bargaining power of the system manufacturer have significantly raised as the manufacturer and the retailers are dependent on the gaming system producers.

k) Due to the evolution in the gaming industry and market reach by 1990, the home video game had become a $5-Billion industry worldwide.

l) Many retail giants including Walmart...