Category Archives: Game Industry

Game industry includes video game, mobile game, and entertaining with virtual components.

Redefining Video Game Industry: Microsoft(MSFT)

In game industry, video game consoles are important for players to access particular games. If you have Sony’s console, PlayStation 5, then, you may play Sony’s games. Having been in this industry longer than any other companies, Sony has been stronger than Microsoft particular in Europe and Asia; PlayStaion has been a better tool, as well.

Something interesting happens recently in this Status Quo relationship between Microsoft and Sony.  Xbox Live membership reached 100 million users, has tripled during the Xbox One life cycle due to Microsoft’s duel strategies: software and cloud services (Gallagher, 2020, September 18). Microsoft enabled users to stream any Xbox One game to a mobile device (Needleman, 2019, June 9).

In the past two decades, Microsoft has expanded its presence in gaming markets (Aryedlund, 2002, January 7; Guth & Wingfield, 2006, April 26). In 2013, Microsoft launched its Xbox One equipped with motion sensors and Skype technology (WSJ, 2013, May 29). However, it did not impress much to investors and game players.

Under Satya Nadella, however, Microsoft fortified its position against Sony by acquisitions of Mojang AB for $2.5 billion in 2014 (Needleman, 2018, June 11) and by recent acquisition of ZeniMax Media Inc for $7.5 billion (Tilley & Needleman, 2020, September 21).  Thus, Microsoft has increased gaming portfolio to 23 games from 15. Now, Microsoft promised 60 games available in its new coming Xbox One System and Windows PCs. Its new console has custom-designed processor with Advanced Micro Devices. Microsoft focused on its subscription services such as Game Pass and Xbox live. It seems that Satya Nadella sees something in video game industry, when he said, “Gaming is a much bigger market than it ever was”(Tilley & Needleman, 2020, September 21).

 

Please cite as:

Rachel Kim (2020, October 21). Redefining Video Game Industry: Microsoft(MSFT), The Blue Ocean Management.com, Retrieved from: https://theblueoceanmanagement.com/2020/10/21/redefining-video-game-industry-microsoftmsft/

 

 

References:

Aryedlund, 2002, January 7, Barrons.com

Needleman, 2018, June 11, Wall Street Journal

Needleman, 2019, June 9, Wall Street Journal

Gallagher, 2020, September 18, Wall Street Journal

Guth & Wingfield, 2006, April 26,Wall Street Journal

Tilley & Needleman, 2020, September 21, Wall Street Journal

WSJ, 2013, May 29, Wall Street Journal

Mobile Games are Hot

Now than ever, a cellphone is a consumer necessity for authorization to work systems, for delivery, for opening door, for social network, for a ride, of course, and for even education: such as Moodle or Education systems. As the reflection of the facts listed, Apple continues to rise its share price today, September 1, 2020, regardless of political uncertainty upcoming presidential election in US or trade tension with China.

If you missed an opportunity to invest in current stock market trend, let’s think what can be sold to mobile phone users? Here comes mobile games that do not need video game consoles. Mobile gaming markets have grown incrementally as shown the graph below( WePC, 2018).

Zynga’ games: FarmVille or CityVille, earned its popularity and name recognition via Facebook. When Facebook made a new game appear before the games known, in 2012, Zynga Inc had lost $22.8 million in its second quarter and its stock went down to 70% from its initial public offering price: $10. Zynga Inc restructured its top managers to integrate web and mobile platforms in 2012 July, according to the company’s announcement. Zynga delayered its previous structure between its CEO, John Schappert, and its Chief Mobile Officer, David Ko, which looked to emphasize on mobile game offering via Android and iPhones (Raice, 2012, August 9).

In 2020, August 31, Zynga shares rose 5.57%, in part because its second quarter earnings expected to be higher than its published guidance of $460 million and to complete its acquisition of Peak, Turkish Mobile game studio (Needleman, 2020, June 1).

Cite as:

Rachel Kim (2020, September 1). Mobile Games are Hot, The Blue Ocean Management, Retrieved from: http://theblueoceanmanagement.com/

 

References:

Needleman, 2020, June 1, Wall Street Journal

Raice, 2012, August 9,Wall Street Journal

WePC, 2018