The players in the gaming industry
Video games The games industry is not only visually approaching Hollywood. The structures are also reminiscent of the film business, only the production costs are not (yet) as enormous. Advertising Week presents the most important studios and publishers.
In addition to the independent game studios mentioned above, the production facilities associated with the hardware manufacturers Sony, Microsoft and Nintendo naturally play a decisive role. With exclusive titles, they make a significant contribution to the appeal of a platform. A console defines its audience and its status not least through its own productions. If Nintendo did not have Mario, Pokémon and Zelda in its personal portfolio, the history of the traditional Japanese company would not look so rosy.
The console companies also earn the most money with these first-party titles. After all, it's not just licenses for the respective platforms that are sold, but the entire work of art that generates money. The composition of the first-party portfolio is ultimately decisive for the match, as manufacturers are known to put money on top of the hardware. Analysts at Merrill Lynch have calculated that every Xbox sold has a negative impact of 125 dollars on Microsoft. The situation is likely to be similar for next-generation consoles, as a simple Blu-ray player will initially cost around CHF 1200, while the "affordable" version of Sony's Blu-ray-capable Playstation 3 will cost CHF 750.
With regard to a possible involvement in the area of in-game advertising (more on this in the next Advertising Week), it is of central importance to find the right partner for a product placement or plot integration. Of course, it is not possible to provide a definitive overview here, but the most important players and their role in the games market are presented here.
Sony Playstation, JapanMarket capitalization: 45.02 billion $Target audience: broad spectrum, but primarily young adultsStill the undisputed market leader with 70 percent of the installed hardware base. Playstation 2 has sold over 100 million units worldwide. Although the PS3 will soon be
is launched on the market, a quick change of platform is not to be expected. Thanks to the broad support of third-party manufacturers, the PS2 offers the largest range of titles. Important in-house productions: GT4 (car), Tekken (fighting) Singstar (social) and EyeToy (social).
Microsoft Xbox, USAMarket capitalization: 248.53 billion $Target audience: Focused on young adults.In 2001, software manufacturer Microsoft (MS) also entered the gaming business as a hardware producer. Since then, MS has learned a lot and implemented it with the new Xbox 360 platform. Strong online community. Recently bought the in-game advertising agency Massive. Expected installed base by the end of 2007: 10 million: Halo (shooter), Project Gotham Racing (car) and Dead or Alive (combat).
Nintendo, JapanMarket capitalization: 27.41 billion $Target audience: Families and younger gamersOldest hardware provider with very strong own brands such as Mario, Pokémon and Zelda. Currently in third place with installed console base, but leading in portables with Gameboy. Very innovative, often brilliant combination of hardware and software, weak in the area of third parties. However, the next console, Wii, has broader support. Important in-house productions: Mario (racing/jump'n'run), Zelda (role-playing game), Pokémon (role-playing game) and Gehirnjogging (brain game).
Electronic Arts, USAMarket capitalization: 15.82 billion $Target audience: Broad spectrum, primarily young adultsElectronic Arts is in a different league compared to its competitors. Strong sports licenses such as Fifa, NHL and Madden as well as lucrative proprietary licenses are part of the annual line-up. Thanks to aggressive expansion in recent years and the acquisition of various studios, EA is ready for the next generation. Important in-house productions: Need For Speed (car), Medal of Honor (shooter) and Sims (social).
Activision, USAMarket capitalization: 3.89 billion $Target audience: Young adultsThe eternal number 2 has decided to copy the EA strategy and recently acquired the James Bond license that once belonged to the market leader. Activision relies on a mix of in-house and licensed productions, with the latter dominating. Marvel Comics is also a prominent license partner with blockbusters such as "Spider-Man" and "The X-Men". Important in-house productions: Call of Duty (shooter), Tony Hawk (sport) and True Crime (action).
Konami, JapanMarket capitalization: 3.55 billion $Target audience: Young adultsKonami recognized early on that focusing solely on the domestic market makes little economic sense. By integrating Western content, its titles are often more successful in Europe and the USA than in Japan. The star of the Konami studio is Hideo Kojima, who has already been compared to Steven Spielberg with his spy scenarios "Metal Gear Solid". Important in-house productions: Silent Hill (horror), Metal Gear Solid (action) and Pro Evolution Soccer (football).
THQ, USAMarket capitalization: 1.76 billion $Target audience: Families and children, young adults Traditionally, THQ is responsible for the interactive implementation of Pixar animation hits such as "Finding Nemo" and currently "Cars". In addition to these strong Disney licenses, THQ also relies on other cartoon heroes such as Sponge Bob and Scooby Doo. The in-house productions generally do not have their own face, the most important being Full Spectrum Warrior (shooter), Moto GP (motorcycle) and Titan Quest (role-playing game).
Ubisoft, FranceMarket capitalization: 1.01 billion $Target audience: Broad, primarily young adultsThe French publisher Ubisoft can look back on a real success story. In recent years, it has expanded its catalog with strong franchises of its own and collaborations with bestselling author Tom Clancy, for example. The positive prospects are such that gaming giant Electronic Arts has secured a 20 percent share package. Important in-house productions include: Tom Clancy's Splinter Cell (action), Ghost
Recon (Shooter) and Ray-Man (Jump'n'Run).
THQ, USAMarket capitalization: 1.76 billion $Target audience: Families and children, young adults Traditionally, THQ is responsible for the interactive implementation of Pixar animation hits such as "Finding Nemo" and currently "Cars". In addition to these strong Disney licenses, THQ also focuses on other cartoon heroes such as Sponge Bob and Scooby Doo. The in-house productions generally do not have their own face, the most important being Full Spectrum Warrior (shooter), Moto GP (motorcycle) and Titan Quest (role-playing game).
Take Two Interactive, USAMarket capitalization: 928 million $Target audience: Young adultsTake Two suffers from the reputation of being a one-hit wonder, but apart from the controversial super-hit series "Grand Theft Auto", the publisher has very little to offer in the way of success. The recurring investigations by stock exchange supervisory authorities are also of little help. Important in-house productions: Grand Theft Auto (action), The Elder Scrolls (role-playing game) and Prey (shooter).
Midway, USAMarket capitalization: 832 million $Target audience: Young adultsMidway has been in business for a long time, but has recently been on the decline. The traditional company behind classics such as "Defender" and "Robotron" has, with a few exceptions, missed the boat. Important in-house productions: Mortal Kombat (combat), Spyhunter (action) and Rise and Fall: Civilizations at War (strategy).
Marc Bodmer
