Key Success Factors in Video Game Industry

Marketing related

 

In the past the marketing of video game was unsophisticated and advertising lead to word of mouth publicity and sometimes only consistent of adds In leading video games consumer magazine but in 1994, video game marketing was becoming more significant factor which are as:

    

Clear Advertising

Initially, the shelf space was crowded with video game platform so companies in the video-game industry changed their marketing strategy, i.e. video game release began to be promoted through TV advertising, promoting ties-in, direct mail and special lunch parties.

          

Strong Brand Name

Many industries observers saw the video game becoming hits driving business retailer only took their product only if they have a strong brand name backed with advertising dollars.

Technology related

The industry has the ability to fulfill the technology related KSF

    

Expertise in a particular technology

Video game industry including company like Nintendo, Sega, Philips and Sony has expertise to produce a particular technology. They were seven principles types of hardware software for playing video game, 8-bits, 16-bits, 64-bits, console, portable system, CD-based system and PC.

Proven ability to improve  production process

Video game industry have the ability to improve production process for the needs and demands for the customer that if the customer wants 8-bit video game so the industry would produce that type of product but they want more bits in the product.

For example, Innovators have a history of buying new system that offers significant technology improvement over existing alternatives and are generally insensitive to price, software availability, brand identification, breadth of distribution and factory support.

Distribution related

Strong direct sales capabilities via the internet and having company owned retail outlet: Through technology was making new form distribution position. Several companies were experimenting with direct marketing, use of cable TV, and online distribution via the internet. There was also potential that the increased bandwidth of phone and cable system could make multiplayer network gaming possible.

Skilled and capability related

The firm specialized in any field which gives it competitive advantage.

Product innovation capabilities

 

Due to the rapid involvement of new technologies, the video game industry witnessed the development of more and more innovative products over a short span of time, with companies imitating each other products to win in the race to success. National and global distribution capabilities: Although the key players of the industry operated both in domestic and global markets, more success was achieved on national grounds.