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Electronic Toys & Games Manufacturing
First Research, Feb 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US electronic toys and games manufacturing industry includes a small number of companies with combined annual revenue of about $8 billion. Major companies include systems makers Microsoft, Nintendo, and Sony, as well as peripheral providers such as Logitech and Mad Catz. The industry is highly concentrated: the top three companies account for the majority of revenues.
Entertainment and games software and manufacturing of personal computers (PCs) used for gaming are covered in separate industry profiles.
COMPETITIVE LANDSCAPE
Demand is driven by personal income and product innovation. The profitability of individual companies depends on effective marketing, competitive product design, and manufacturing efficiency. Market success drives additional revenue via royalties paid by third-party game developers. The industry is capital-intensive.
Electronic gaming products compete with PCs, TV, and other forms of electronic and non-electronic entertainment for consumer leisure time.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are video game consoles, portable players, and peripheral hardware. Video game consoles are computers specially designed to deliver entertainment and game software, using a TV as a monitor. Video game console sales consist of three competing product lines: Sony's PlayStation, Microsoft's Xbox 360, and Nintendo's Wii. Portable players are handheld gaming devices, like the Nintendo DS and Sony PSP (PlayStation Portable). Peripheral hardware includes devices that elevate the human-machine interaction (HMI) such as controllers, joysticks, and driving wheels. Peripherals also include upgrades to core products, such as larger hard drives, additional memory, and wireless connectivity devices.
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