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Business Strategy and Cloud Computing Assignment

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Added on  2019-09-16

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Business Strategy and Cloud Computing
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Executive Summary
Freakomon, a gaming console company had tough times in terms of sales with its earlier version
of Play sphere launched in 2001. The console could not match with the overall 3D graphics, solid
user interfaces, and hardware compatibility with products of giants like Sony and Microsoft who
generated huge response from gamers. Sony’s play station 2 already had a loyal gamer’s base
and with the launch of Play Station 2 that contained flashy graphics, mind boggling hard core
fighting along with sports titles took the gaming world by storm. Another reason for the
overwhelming success of Play Station 2 was that its console enabled gamers to launch the earlier
version of Play Station and hence loyal Sony connecting loyal Sony Gamers to the console and
sustaining its already huge base. On the other hand, Microsoft’s X Box launch with popular titles
such as Half Life 2 and Madden made Gamers jump into the gaming river. The real time 3D
environments along with constant stream of following titles made considerable loyal Gamers for
Microsoft providing the push to further upgrade the X-Box’s consoles.
Microsoft and Sony thus dented Freakomon’s Play sphere severely and the company lost
considerable market to them as its hardware contained only the basic 3D features and could not
match with that of Microsoft and Sony. The earlier version of Freakomon’s console had
generated huge successes creating a large number of Gamers Base for the company. Among
them the most popular was the Peppa Pigs Franchise which is hailed for epitomizing the success
story of Freakomon Company.
Freakomon, now comes up with an all new version codenamed “Rashomon” that is expected to
revolutionize the way console video games are played. The Rashomon version has stubby Rod
controller that can be controlled with one hand. This pointer device’s control according to
Rashomon looks incredibly beautiful and controlled the gaming functions very effectively.
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However, the unique selling point lies in the fact that such one handed control device is being
introduced for the first time and it would appeal and attract gamers towards Freakomon.
Important Stakeholders
The important stakeholders in the gaming industry are Console Manufacturers, Third Party
developers, Independent Publishers, and Gamers. Console manufacturers are hardware
manufacturers, third party developers are those who develop titles and sell them to console
manufacturers, Independent publishers are those who may publish games for the console
manufacturers, and the Gamers are the customers who buys the product and play games.
However, it must be noted that Console manufacturers mostly have their own game publishing
system which they use to publish games. Below is the diagram (Grant, 1991).
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Evaluation of Freakomon’s competitive position
Kurosawa, the CEO of Rashomon through this innovation attempts to expand the Gaming
industry’s base beyond the existing traditional young adult gamers to homemakers and other
family members as he believed that the one handed remote like features would enable people to
play games with ease. Kurosawa with all his experiences in the gaming industry envisions that if
Rashomon is launched with proper marketing strategy along with required compatible graphics
features and titles, it could turn out to be a game-changer for the company.
Dynamics of the Industry
The gaming industry in USA is characterized mostly by oligopolistic nature as few firms hold
most of the market share. Sony’s Play Station, Microsoft’s X-Box, and Freakomon along with
few others holds maximum chunk of the market share in the Gaming Industry. Microsoft, Sony,
and Freakomon are the console manufacturer or platform also referred as first party publisher in
the US game market. Gaming industry function consists of activities mostly between developers
and publishers. Publishers hold the edge over developers as they are mostly responsible for
marketing, publishing, and providing assistance to the developers who develops game software.
Developers may be first party developers, second party developers, third party developers or
independent developers. First party developers also ‘in house developers’ is wholly owned and
run by console owners or publishers while second party developers works for a console on a
contractual basis and develops game software exclusively for one consoles. The term third party
developers develop a game for a console firm and still have some influence over the firm as they
may provide some considerable input. However, mostly it is the console platform or publishers
who exercise maximum control in the entire process. The contract between third party
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