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).
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.
Products, Operations & Technology
Major entertainment and games software product segments include applications for gaming consoles, handheld devices, and personal computers. Console software is made for dedicated gaming devices that work with TVs; major platforms include Microsoft's Xbox, Nintendo's Switch, and Sony's PlayStation. The handheld segment includes titles for portable gaming systems such as Nintendo's DS and Sony's PlayStation Vita, as well as iOS and Android mobile devices. Games in the personal computer segment are designed for use with desktop and laptop PCs.