Analysis of Gaming Industry

Group 1
• Aryan Raj (21013)
• Amit Srivastava (21275)
• Pragati Verma (21377)
• Sanchay Mishra (21328)
 Route Map
Introduction to Gaming Market Size &
01 Industry
04
Major Players

Porter’s Five Force Future of Gaming

02 05 Industry
Analysis

03 Segmentation 06 Women in Charge

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 Porter's 5 Forces Analysis

01
New Entry
Competitive rivalry within the
industry: factors affecting quality of
04
gaming content, user experience Suppliers
02 Bargaining power of supplier: fb has
high bargaining leverage followed
Buyers by apple & google

Bargaining power of customer:-

presence of large number of gaming 05
and entertainment options Competitive Rivalry
03 Threat of substitute: increased
adoption of other entertainment
Substitutes apps could impact time spent by
player on game
Threats of New Entrants: The low
barrier to entry in the internet
business make it easy for new
entrants

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 Segmentation
Grouping of your players into various units; small or large, based upon their behavior -
commonalities and shared characteristics is called customer segmentation.

Demographic Geographic
Age, sex, marital status, family Geographic segmentation, splitting
size, occupation, education level, up your market based on their
income, race, nationality and location. Country, state, county and
religion. zip code, Climate, Urban,
Suburban, Etc.

Behavioral Psychographic
Online shopping habits , Actions Personality traits, interests, beliefs,
taken on a website, Benefits values, attitudes and lifestyles
sought, Usage rate, Loyalty

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 Segmentation for Gaming Industry
These are the 4 main types of segmentation in Gaming: Demographic, Geographic, Psychographic
and Behavioral. Although every one of the above has its own purpose and benefits, behavioral
segmentation is the main type for the gaming industry.

Game market segmentation means breaking up an overall addressable market of gamers. The
addressable market is everyone you could possibly reach with your game. For example, all gamers,
all mobile gamers, all console gamers, etc.
Demographic

Pro gamers vs non-pro Console players versus PC players

Players who join clans versus those who don’t Budget gamers vs players with lots of disposable income

College gamers vs high school players vs young professionals Multiplayer focused versus single-player focused

RPG lovers versus FPS addicts versus sports junkies

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 Game market segmentation in three steps

• Identify an overall addressable market – that is, everyone who could possibly buy your game
• Divide that market into homogeneous, mutually exclusive, and collectively exhaustive segments
• Identify the segment that you think will be most amenable to your game

Example for Gaming segmentation

Here’s an example segmentation for the addressable market of hard-core gamers

The segments are:

• Homogenous – they all favor one game mode

• Mutually exclusive – each member has a single favorite mode of play
• Collectively exhaustive – all hard-core gamers favor one of these
modes

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 Segmentation of Games by different companies

Some of the major players of the Gaming Industry uses the most common way of segmenting the
players. That is segmenting on the basis of genre.

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 The global gaming market
(hereafter referred to as
the market studied) was
valued at USD 175.80
billion in 2021, and it is
expected to reach a value
of USD 314.40 billion by
2026, registering a CAGR
of 9.64% over 2021-2026.

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 Major Players

Sony Corporation Tencent Games

● Founded in: 1946 ● Founded in: 1998
● Based in: Tokyo, Tokyo ● Based in: Shenzhen,
Prefecture, Japan Guangdong, China

Gaming Revenue: $25.0 billion Gaming Revenue: $13.9 billion

Most profitable game sold in 2020 Most profitable games sold in 2020

PlayStation 5 (Gaming Console) Honor of Kings, PUBG

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 Major Players (contd.)

Activision Blizzard EA Games

● Founded in: 2008 ● Founded in: 1982

● Based in: Santa Monica, ● Based in: Redwood
California, USA City, California, USA

Gaming Revenue: $8.1 billion Gaming Revenue: $5.5 billion

Most profitable game sold in 2020 Most profitable game sold in 2020

Call of Duty: Black Ops Cold War FIFA 21

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 The Story of Apple

Fact Impact

• Apple Doesn’t Make 01 02 • Apple raked in more profits from games

Videogames. But It’s the than Xbox maker Microsoft Corp. ,
Hottest Player in Gaming gaming giants Nintendo Co. and
Activision Blizzard Inc. and PlayStation
maker Sony Corp

Platform Profits

• App Store, its digital marketplace, • Apple’s gaming operating

where the company sells and 04 03 revenue for the year totaled $
distributes games and takes a 30% 8.5 billion
cut of sales

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 Kotler's 5 Product Levels

Generic Product Expected Product

The closest planet to the Sun and
the smallest one 2 3 Venus is the second planet from
the Sun

Core Product

Potential Product Augmented Product

Saturn is composed mostly of
hydrogen and helium 5 4 Despite being red, Mars is
actually a very cold place

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 HADO : Next Gen Gaming

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 Future of Gaming

All traditional systems are replaced with new

01 technologies

No need of costly consoles. AR can appeal to

02 wider market

Virtual and Augmented reality creates elements of

Traditional vs Augmented 03 the real world with virtual ones

04 Expected valuation of $385+ Billion by 2023

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 Factors Contributing To Success OF AR/VR
5G Ease of Use
No more lagging of
internet No more small buttons and
touch screen problem

Immersion
Aesthetics
Immersive experiences are
 Existing wearable's tend to magical, lifting the spirit and
come in very bulky form. compelling users to want
more.

Mobility Style
AR can be used anywhere
These devices will look
because it doesn’t block out the
fashionable and turn out so
real world.
cool
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 Connecting The Dots : Women in Gaming Industry

65% 47% 18%

Women play video As of 2020, 47% of the India’s contribution to
games, globally world’s total gamers are world gaming. (Acc. To
women Think with Google
Assets Assets
APAC)

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 Red Bull-It gives you wings

The Rise of Girl Gamer-Red Bull

● At Red Bull Battle Grounds, the
ESA Foundation teamed up with Red
Bull to put the women of gaming front
and center

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 #shetalks Women Gamers-Facebook

● This will include a website featuring 20

videos of women

● Marketing & Sales, Development &

Engineering, Hosts, Producers and
Writers, Editorial & Design and HR &
Culture

● The videos will feature stories from

women of their experiences in the games
business

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 Challenges Faced By Gaming Industry

Legal Regulation Compeitition

Power VS Performance

Market Saturation Technology

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