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Understanding Video Game Market Dynamics: For PS & Xbox Fans

Playstation and Xbox market is taking the gaming world by storm. Thanks to the popularity of these two, there are many video game companies coming up with popular and exciting games. Haven’t we grown up playing Grand Theft Auto, Horizon Zero Dawn, Fortnite, Battlefield, Injustice, Call of Duty and all those fun filled games. Everyday after college, we look forward to at least one good game with out internet buddies and friends. Ever wondered how these games are developed and marketed? How do companies decide on the game pricing? How do sales happen?

Check out this graph below.

It takes years of research and development to come up with an excellent video game which is loved by kids. The companies first start with market research. They interview kids and understand their expectations. They also try to estimate the market trends. They check the historic data on which types of game are popular among which age group of kids? How are the new generations kids changing and what are their likes and dislikes? Which are the superheros or movies that they idolised?

Marvel movies, Justice League, Harry Potter, Price of Persia, Blade Runner  are some of the most popular movies that teenagers love. Why not design a video game based on these? By doing an extensive market research for months, the companies come up with various ideas and themes for video games.

Once the ideation is done, then starts the designing phase. Today, the video games are loaded with heavy graphics and sound to give a great gaming experience to the users. In addition, the video gaming developers are using latest technology that are compatible with the new generations of PS and Xbox.

When you take a look over the gaming history, you would see the advancements in technology. Earlier friends used to play games together, now you can play games online with top players across the globe. Over time, computers and laptops with good graphics cards from Nvidia are able to process the data quickly and improve gaming experience. It need not be mentioned that PS and Xbox have completely revolutionized the gaming industry.

Finally when they build the entire game, that is the time the companies start spending huge amount of money on marketing. They create a hype in the market for at least 6 months, so that the game lovers are just waiting for the game to release so that they can buy it and start playing. Ideally, these companies charge a high amount of money in the first month after release and decrease the amount over time. The early adopters of the game are the ones who end up spending a lot on buying it before their friends could lay a hand on it. This is rewarding for the people who likes to fault possessing technology that is THE LATEST.

Three major producers who are creating waves in the gaming world – Microsoft, Sony and Nintendo. These companies release games that give similar playing experience at the same time in the same market to gain huge sales. Whoever launches the game first, ends p gaining a high share of customer money.  You can buy a game, play online or download it, the companies in the gaming business maintain pricing consistency to ensure they maintain the market share and at the same time make huge profits.

That is in short on how they develop and sell the video games that we love so much. If you have any other information on this topic, do share it with us in the comments below!

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