Entertainment & Games Software Industry Profile

Companies in this industry create video games and other entertainment software. Major companies include Activision Blizzard and Electronic Arts (US); Capcom, Konami, Nintendo, and Sony (Japan); and Ubisoft (France).

Globally, consumers spend about $50 billion annually on video game software. Leading game software producing countries include the US, Japan, and Canada. Skyrocketing adoption of mobile devices and expanding markets for video games could boost global industry sales to $70 billion by 2017.

The US entertainment and games software industry includes about 220 companies with combined annual revenue of about $10 billion. For the electronic entertainment industry overall, moderate growth is forecast for the next two years. Key growth drivers for entertainment and games software include consumer spending and technology innovation.

COMPETITIVE LANDSCAPE

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 is made for dedicated gaming devices that work with TVs; major platforms include Microsoft's Xbox, Nintendo's Wii, ...