Entertainment & Games Software
Companies in this industry create video games and other entertainment software. Major companies include Activision Blizzard, Electronic Arts, and Microsoft (all based in the US); Tencent (China); Konami, Nintendo, Sega, and Bandai Namco (Japan); and Ubisoft (France).
Global video game revenue from all channels, including mobile, PC, and console, totals about $120 billion per year, according to SuperData Research. Key growth drivers include games for mobile devices, virtual reality, and esports (multiplayer competitive video games). Top video game markets include China, the US, and Japan.
The entertainment and games software industry is a subset of the computer software industry, which is covered in a separate industry profile. The US games market, excluding hardware, generates approximately $37 billion, according to NewZoo.
Demand is driven primarily by personal income and gamer demographics. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies have economies of scale in manufacturing, marketing, distribution, and selling. Small companies can compete successfully by developing creative products.
Computer and video games compete as a leisure-time activity with TV, movies, music, the internet, and other forms of electronic and nonelectronic entertainment.
Products, Operations & Technology
Major entertainment and games software product segments include applications for gaming consoles, handheld devices, and personal computers. Console software
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms