Companies in this industry manufacture electronic toys and games, including video game consoles. Major companies include console makers Microsoft (based in the US), Nintendo (Japan), and Sony (Japan), as well as peripheral providers such as Bigben (France), Nyko (US), and Logitech (Switzerland).
Demand is driven by personal income and product innovation. The profitability of individual companies depends on effective marketing, competitive product design, and manufacturing efficiency. Market success drives additional revenue via royalties paid by third-party game developers. The US video game console industry is highly concentrated: the top three companies dominate.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are video game consoles, portable players, and peripheral hardware. Video game consoles are computers specially designed to deliver entertainment and game software, using a TV as a monitor. Video game console sales consist of three competing products: Sony's PlayStation 3 (PS3), Microsoft's Xbox 360, and Nintendo's Wii, as well as next-generation consoles such as Wii U, Xbox One, and PS4. Portable players are handheld gaming devices, like Nintendo's DSi and 3DS, and Sony's PlayStation Vita. A hybrid console, the Nintendo Switch was developed as a home console with mobile gaming capabilities. Peripheral hardware includes devices that elevate the human-machine interaction (HMI) such as controllers, joysticks, and driving wheels. Peripherals also include upgrades to core products, such as larger hard drives, additional memory, and wireless connectivity devices.