The Sims label develops and markets elaboration games and online communities with an emphasis on creativity, community and humor, The Sims label offers a variety of other online communities including The Sims On Stage a creative community featuring karaoke, comedy, poetry, and move mishaps.
Learning and Experience Curve Effects Capacity Utilization Industry Profitability Competitive Analysis Porter’s Five Forces Model of Competition Rivalry among Competing Sellers Potential New Entrants Substitute Products Buyers Sellers Typical customers include mass merchandisers, wholesale clubs, electronic superstores, specialty game stores, and Internet retailers. Publishers and retailers may operate their own online game stores, but brick-and- mortar outlets are the primary distribution channel of package products.
A title with high LIST retail penetration may be on the shelves of 20,000 or more retail outlets. Companies use a variety of sales channels including in-house sales forces, manufacturer rep agencies, distributors, and online stores Electronic Arts used two types of suppliers Approved manufacturers that produced the packaged games for EAI titles played on their platforms and third-party vendors that handled the production of EASE PC-based games titles-pressing of CDC and DVD’s printing of user manuals and Other packaging Of dish in jewel cases, and shipping.
Industry and Competitive Analysis Industry Driving Forces Key Success Factors The reparability Of individual companies depends on an understanding Of consumer needs, timely product development, and effective marketing. Large companies publish a portfolio of titles and have advantage of scale in manufacturing, marketing, distribution, and selling. Small development studios compete through creative designs and by partnering with large publishers. Major marketing vehicles include ads in platform-specific gaming magazines, special in-store promotions, and company websites.
Online and print previews and reviews n game magazines are a major component of creating demand. Similar to the movie industry, most advertising and public relations campaigns for video games are released prior to the release of the title. Implementation Polices Best Practices Reward Structures Licensing agreements gave the platform manufacturer the right to set the fee structure that developers had to pay in order to publish games for their platforms. The customary royalty fee was between 58 to $10 Rangoon a newly released game. As games prices went down so do royalty fees.
Licensing agreement gave manufacturers control n other areas like game developers oeuvre required to submit a prototype for evaluation and approval that included all artwork to be used in connection with packaging and marketing Of the product. The console manufacture had final approval over all games. Royalties were also based on number of units manufactured. Implementing Strategy The company hopes to get a boost from the release of The Sims 3 computer games in which gamers control the daily activities Officemates human beings. The game is scheduled to be released on February 20, 2009, during Electronic Arts fiscal fourth quarter. ICC is typically a seasonally slow period since it is after the Christmas holiday. (Value_nine) One of the company’s strategic goals is to increase resources toward developing new titles for the next-generation of game consoles, which includes Microsoft Oxbow 360, Nintendo Winds Sony Palpitations 3, The installed base of these game consoles is expected to increase significantly in 2008 as consumers postgraduate video game systems. Electronic Arts plans to release limited number of titles for prior-generation consoles product sales tort these systems are anticipated to decline.
