Running Header: Business Strategy and Cloud Computing1 Business Strategy and Cloud Computing Name Institution
Business Strategy and Cloud Computing2 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.
Business Strategy and Cloud Computing3 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,IndependentPublishers,andGamers.Consolemanufacturersarehardware 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).
Business Strategy and Cloud Computing4 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 whoexercisemaximumcontrolintheentireprocess.Thecontractbetweenthirdparty