Social Responsibility Project

INTRODUCTION TO THE INDUSTRY

The interactive entertainment industry is the economic sector involved with the development, marketing and sales of video games. The video game/interactive entertainment industry has been a part of the global market since its inception. The target customers and suppliers are dispersed throughout the globe. Initially, video gaming entertainment was primarily for children, but throughout the years consumers have begun to transcend age differences and now entertain a wider demographic. The entertainment value gained by the customer is the same whether a game is played in Japan or the United States, whether 8 or 45 years old. The industry players have found new innovative ways to adapt to changing trends by changing the “rules of the games.” As globalisation keeps on increasing every day, they are facing newer challenges and opportunities.

INDUSTRY DEFINITION

Entertainment is a form of activity that holds the attention and interest of an audience, or gives pleasure and delight. The phrase interactive entertainment refers to the business of producing and distributing products and services, of which the entertainment value can be influenced by users through direct feedback. The chosen definition for the ‘video game industry’ will be ‘the hardware and software supply chain of the video game console industry with attention given to the cultural, political, legal and economic forces in the industry’s environment.’ The four major components/products of the interactive entertainment industry are games and software, consoles, accessories and online subscriptions. Activities within this industry include development, publishing, and retailing of games, consoles and accessories. Games and software comprises of 68% of the market followed by sales of consoles at 18%; and the rest is made up if accessories and online subscriptions. Retail game sales are the revenue generator and driver and therefore the focus of the industry. This shift in focus from...