The games console industry has been selected as exemplifying a relatively mature industry currently in a state of competitive flux. This industry traditionally renews itself every 5-6 years, as new technology advances make the previously impossible industry standard. Console gaming borne from arcade phenomenon which swept the globe throughout the 70s, promised the possibility of playing arcade-style games in home comfort. Advances in technology, in many cases, removed the need for arcade centres, a declining industry in recent years.
Not content with simply providing a home arcade system, the current consoles crop attempts to go further by creating home entertainment systems that not only play games, but on the internet utilising high-speed broadband connections, DVD movies and audio CDs to a high standard.
Repositioning consoles as home entertainment systems has seen the industry grow from humble beginnings to one bringing in global revenues over $20bn in 2002, well in excess of the Hollywood movie industry. However, this assignment demonstrates the economic structures of the industry and firms within it have faced a number of challenges, and not all firms have proven successful.
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