According to FMI, Microsoft’s key offerings in the connected game console market include standalone console hardware and standalone console software. The US accounts for nearly half of the revenue of the company. Game and network services account for nearly 12% of Microsoft’s revenues, and game consoles are a significant part of the game and network services.
Research and development (R&D) is a focus area for Microsoft. It invested nearly US$11 billion in R&D activities in 2014. Microsoft is also looking to expand its exclusive game title portfolio by acquiring independent game studios. FMI says the move will help Microsoft in enhancing its consumer base while helping it broaden its range of offerings. For example, Microsoft acquired game developer Mojang in 2014 to include its immensely popular Minecraft game to its portfolio.
Tokyo-based Sony Corporation’s key offerings include standalone console hardware, standalone console software, handheld console hardware, and handheld console software. Japan is the most profitable market for Sony, followed by Europe. The game and network services accounts for nearly 12.2% of the company’s total revenues.
Sony’s PlayStation console is popular among gamers, and the company is aiming to leverage the cloud-based gaming platform to attract online gamers. FMI notes that a key strategy followed by Sony includes setting up manufacturing units in emerging countries to take advantage of the availability of affordable labour. For example, the company announced local manufacturing of PlayStation 3 (PS3) in Brazil.
FMI’s research report reveals that mergers and acquisitions form a key part of Sony’s business strategy. In 2012, Sony acquired Gaikai, a technology provider for streaming of high-end video games.
Kyoto-based Nintendo’s key offerings include standalone console hardware, standalone console software, handheld console hardware, and handheld console software. North America is the most lucrative region for the company, accounting for nearly 39% revenues in 2014.
Nintendo’s business strategy is focused around casual gamers; unlike the Sony's PlayStation and Microsoft's Xbox, which are targeted towards hard-core gamers, Nintendo games are aimed at people who play games once in a while.
Affordability remains a key aspect of Nintendo, and the company is focusing on manufacturing low-cost consoles to expand in developing economies.
Nintendo partnered with popular content aggregator Humble Bundle in 2015. Nintendo also announced the revival of Nintendo World Championships – a gaming tournament from the 1990s – to enhance its presence in the market.
US-based NVIDIA Corporation’s key offerings include handheld console hardware and handheld console software. Taiwan and mainland China are the two most profitable markets for NVIDIA, accounting for 32% and 19.2% revenue share respectively. NVIDIA has a strong focus on R&D. The company invested nearly US$2.5 billion in R&D in 2013 and 2014. The company launched NVIDIA GRID in a bid to promote cloud based gaming and consolidating its presence in the market in 2013.
Interested?
Browse the Connected Game Console Market: Global Industry Analysis and Opportunity Assessment 2015 - 2020 report
Read the TechTrade Asia blog post on NVIDIA's GRID Test Drive
Read the TechTrade Asia blog post on NVIDIA's GRID Test Drive
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