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Deployment in the Video Game industry

Deployment in the Video Game industry. The different generations of competition can be summarized in certain important strategies, which focus around Timing Licensing and compatibility Pricing Marketing Distribution. Timing.

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Deployment in the Video Game industry

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  1. Deployment in the Video Game industry

  2. The different generations of competition can be summarized in certain important strategies, which focus around • Timing • Licensing and compatibility • Pricing • Marketing • Distribution

  3. Timing • being willing to cannibalize existing generations before competitors do, and • timing introduction to coincide with the Christmas selling season.

  4. Licensing and compatibility • making new generations of video game consoles backward compatible with previous generations; • licensing third-party developers to produce games (though still producing games in house). • Profits are made off of game royalties so it is not effective to license console production to others because they will not be able to subsidize console price with game royalties.

  5. Pricing • consoles must be priced at or below cost, somewhere under $300 in order to facilitate Christmas sales.

  6. Marketing • aggressive advertising and promotion, with preannouncements about upcoming product introductions.

  7. Distribution • leveraging distributor relationships (as Sony did), • providing guarantees if necessary (as Nintendo did with its early consignment policies), • making sure that a wide range of distributors receive sufficient shipments (to avoid Sega’s mistake with the Saturn).

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