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Case study of Galactic Ranges

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  1. Introduction
  2. The making of Disney
    1. The first steps of Walter Elias Disney in the world of animation
    2. The creation of the first Mickey Mouse animated film
    3. The strikes of 1941; Disney and the war effort
    4. The creator's death, the birth of a new Disney?
  3. The marketing strategies of the Disney brand
    1. Since the 30s; goodies company
    2. The creation of Disney theme parks
    3. The case of Disneyland Resorts Paris
  4. Conclusion

In 1974, Gilbert Pix had a brilliant idea that he developed regarding a video game that requires the use of game cartridges. Despite the innovative nature of this invention, it was sold for lack of resources and partners.

Pix was not de-motivated by this failure and created a company manufacturing electronic components for large enterprises. Parallely with the help of its employees and engineers, he developed a new machine: an original console, with multiple characteristics. The question that is on focus here is the launch strategy and whether it should be adopted in order to penetrate the oligopolistic market of video games.

The video game industry is indeed growing worldwide and has reached an important economic dimension. Today, the game industry represents a turnover of 30 billion euros in 2007 (U.S., Europe and Japan) with a growth rate of 15% per year.

The video market can be segmented into several branches, depending on the media (arcade, Internet, personal computers, mobile phones, consoles). The players are mostly young adults, they are alone 60% of the U.S. population and as many as 40% of the European population.

In terms of platforms, the French play console and or computer and some of the players prefer the handheld.
Nearly 40% of players are aged between 15 to 24. People aged over 35 represent the same proportion (40%). The increasing age of the players is a growing trend in recent years.

Over one third of gamblers are women. They represent an even larger share of players and handheld computer (such as Game Boy).
The video game market is highly competitive and globalized. It pits three major machine manufacturers, Sony, Nintendo and Microsoft. Faced with these companies that set technical standards, developers and publishers are in a position of relative weakness

To understand the video game market, one must first distinguish between developers who aim to create video games, generally across all platforms, manufacturers of video game consoles. The latter also have, in general, their own game development studios.

In terms of game developers, there are Eidos, Ubisoft, Sega, Activision, Buena Vista Games, Electronic Arts. As for the makers of game consoles, the main market are Nintendo, Sony and Microsoft.

The PCs find themselves further and furtherbehind the consoles in terms of video game sales as indicated in the diagram. This is mainly due to the ease of access and installation of pirated PC games (download), in contrast to home consoles where the player should have previously installed the chips in order to launch the pirated games.

As already highlighted in the internal analysis, the approach Pix Electronics Marketing is almost non existent. With the exception of a budget target of communication in trade magazines, Pix Gilbert never tried to publicize his company outside the professional world in spite of interesting contracts with very large companies.

In fact, the realization by Gilbert Pix project of his dreams seems to have been primarily focused around the production. Thus, the game console was designed from start to finish according to the personal analysis of its leader without thinking it could be wrong or that other, more lucrative sectors or carriers, could exist.

Tags: Galactic Ranges, video games, market conditions

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