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What Is the defining business EssayWhat is the defining business and economic characteristics of the impression game console pains? ? Intensity of competition the competition in the video game industry is dramatically fierce. There be three largest companies in this industry, which are Nintendo, Sony and Microsoft. Additionally, lots of companies have relatively steep level of strength, for examplehigh technology and meet the social trend, which are able to compete in the mart place. ?Market size the target mart for the products cover all over the world ,however,the cumulate sales agree manpowerts in Europe, Japan and the U. S are higher compare to other regions. ?Influenced by global recession video game is not the necessary product, hence,the global economic recession have influenced the sale of video game products. The revenue declines 6% in 2010 compare to 2009, and also continued decreasing in 2011. ?Growth rapidlythe video game industry have been growingrapidly, and al so expected to continue growing in the future. What is the industry equal? The companies in video game industry refer to provide high technological and innovative products.It includes online game, mobile game, video game console and handheld game. In addition, in order to attract exist and potential consumers and build node loyalty, these companies multiply their efforts to enhancethe technology of the products. Whats to a greater extent, video game business sectorupdate very fast, the new generation replaced the old one in short period. Meanwhile, the companies launched latest merchandise rapidly. However, an obviously issue is that the target market is limited, young men are the majority part.What 3-5 key factors determine the success of video game console developers like Nintendo (2009-2012)? 1. Unique concept of video game console In the original period, the video game companies tend to pay more attention to improving technology, which get out to less market share and high c ompetition, however, after a strategic research, Nintendo intend to create product differentiation advantage over rivals, it avoid move high-tech blindly, focusing on developing unique function of product, such as to allowed consumers to participate in the games by themselves.That characteristic can easily hitch consumers attention. Having a unique and propriety concept is essential in video game console industry. 2. New market segment The video game market is almost saturatedhence, these game companies have to seek new target market to survive. In traditional video game console target market, men occupied the majority portion. In order to gain more profit, companies should take effort to attract more women, elderly and so on.In terms of extending market share, companies cant rely on a small proportion of population. Nintendo designed Wii not only just for men but also for the consentaneous family, the game is very suitable for everyone 3. Technology capability High technology ca pability is a vital factor for game companies to be a drawing card in video game console industry it can provide more technical advantage over rivals. 4. Various range of productsIn straight offs world, people have relatively high demand of products, in order to satisfy the needs, it is necessary to produce diverse product to grab more market share. 5. Low cost Undeniably, reducing cost is an effective way to make profit gain, low cost lead to low impairment, and low price are more acceptable by consumers.Reference Morris, C. (2011), Video Game Sales Drop 6% in 2010, Second Year of Declines, Online Available from http//www. cnbc. com/id/41062675/Video_Game_Sales_Drop_6_in_2010_Second_Year_of_Declines.