SWOT Analysis of Top Gaming Industry Companies - Sony, Activision Billizards, Nvidia and Valve Corporation

This report covers all the strategies used by all of the four companies against each other to secure the greater market share. SWOT analysis of Sony, Activision Billizards, Nvidia and Valve Corporation.

Table of Contents
Executive summary.....................................................................................................................................2
SWOT ANALYSIS.....................................................................................................................................3
Strengths......................................................................................................................................................3
Weakness.....................................................................................................................................................4
Opportunities...............................................................................................................................................6
Threats.........................................................................................................................................................7
References.................................................................................................................................................10

Executive summary
Gaming industry is one of the most tremendous growing industries in the world these days.
Amongst the many top industries few of them are Sony Corp, Activision Billizards, Nvidia and
Valve Corporation. The companies are located in the different geographic zones such as Sony is
located in Japan, whereas the Nvidia and Activision Billizards are located in California, United
States. Valve Corporation is also located in Washington, United States.
Acitivision Billizards is known for its famous products namely Call of duty series, Guitar Hero
for Iphone, Diablo, Crash Bandicoot.
Valve Corporation is an American video game developer having the major products as Counter
strike series, Day of defeat series, also known for famous Dota 2, Left 4 dead series.

On the other hand, Nvidia’s major products are graphics processing units, chipsets, drivers and
central processing units.
Sony Corporation has a wider base that is not only engaged in the video games but also engaged
in telecommunications, computer hardware, semiconductors, and mobile phones.
The position of the company will depend upon the financial performance and the fluctuations in
the prices of the stock, over the period of last three to four years. Moreover the customer
feedback is the real enhancement of the brand. The competition is solid in the entire market and
each company has its own strategies that have been described below in the form of the Swot
Analysis. The future for all the companies is on the verge of growing provided they can find a

diversified base and customers of variety. This report covers all the strategies used by all of the
four companies against each other to secure the greater market share.
SWOT ANALYSIS
Strengths
Activision Billizards
 The global presence of the company is nearest to 7000 employees.
 Smooth revenue stream and the major driver of the company is World of Wildcraft.
 The vast and the global inventory and a team of the experienced professionals are able to
provide the assistance 24/7 for if the projects are shut down, MRO needs or in case of any
emergencies.
 There a wide range of the experience in the industry since 1996, and the company is
serving worldwide.
 Valve Corp generates the major of its profits by having their games on steam which is
one of the most renowned platforms for the purpose of social media entertainment. They
not only prepared games but also are the core generators of the software to help run those
games. This can be taken as the strategy by the Activision to pursue greater name in the
gaming industry. Activision can also generate the major profits through streaming the
games online.
 The company possesses high level of expertise, knowledge and skill in the area of the
development of the various applications and software’s. At Valve Corporation the
engineers are familiar with the major end users and contractor specifications (Bagpack
Community Forums, 2013).
 Just like Valve invested several games such as Half Life Series, Team Fortress, Dota 2,
and Counter Strike. The counter strike was sold for 6.5 million whereas the orange box
was sold for 3 million (Bagpack Community Forums, 2013). Activision must also
develop new games to enter with more existence in the market.
Sony Corp

 Sony Corp has built a brand for itself as this is tagged as one of the most valuable brand
of Asia in the year 2011. The company is also having the technical expertise with the rich
heritage. The products that are involved are magnetic recording tape, the compact disk
and the blue ray disc. The latest innovation, a crystal LED Television was well received
at the consumer electronics show in Las Vegas.
 The success of the Sony with the Playstation is most noteworthy product and it has been
successful since the inception and there is a hike in the demand which again when
compared to Activision Billizards is comparatively more attractive.
 A strong hold towards the market in the entertainment industry with Sony Music and
Sony Pictures has been beneficial for the company to set off the losses on the basis of the
computer based division (Panamore Institute, 2017).
 From the strengths of the Sony Corporation that Activision can diversify itself as Sony
has majorly shifted towards the mobile phones.
Nivida Corp
 The biggest weapon of the Nivida Corporation is NVidia’s arsenal as the manufacturer of
the graphic units for Pc’s have been shifted from this area to the mobile industry to have
a seamless experience and this has increased the market share (Chauhan., 2018).
 The innovation is the next trend for the Nivida Brand. The innovation is one of the
strength in comparison to all the three brands as the company comes up with the new
features in the chips every time which shall be the next strategy of Activision Billizards.
 Nivida has the sound product mix in the area of the graphical units. The major brands
associated with Nvidia are GeForce, Quadro, Tegra, Tesla, Nforce.
 Activision Billiard shall adopt the strategy in order to beat the Nivida Corporation.
Weakness
Activision Billizards
 Non amicable relationships with the developers results in the recent firing and
defamation. The defections resulted in the release of the Call Duty to make a solid base
and point.

 The company also falls under the legal issues where the ex-infinity ward executives were
making the allegations over the claim of Modern Warfare. The musical group claimed for
the snaps being used in one of the band (Mueller, 2010).
 Gaming, while a savvy methods for diversion, is helpless to spending pullback amid
subsidence.
Valve Corp
 The company is focusing only on the featured products and the not even thinking about
the product differentiation or the division in the segment.
 The high speed data and the network are required to cater the full experience to its
customers, and the same can be used as the strength by Activision Billizards to overcome
their other weaknesses as well.
Sony Corp
 The high cost of the media production in comparison to the other two companies is
exceptionally high, especially in case of the television business. The price strategy of the
company is also affected to such a level that the company suffered the loss equivalent to
$6.3 billion for eight years down the line. The market share has been low in comparison
to LG and Samsung (Panamore Institute, 2017).
 The core competency of the Sony Corp is making the electronic product, whereas the
company shifted to other business segments. Therefore the result was obvious and the
brand of Sony was distorted from the market. This is one of the lessons Activision must
focus on to stay in the market.
Nivida Corp
 The absence of the top selling device was one of the major weaknesses and one such
example is Tegra mobile chips which NIVIDA manufactures have not even found the
path into a bestseller like IPhone, also on the other hand the trend is set but the androids
and the devices are yet to gather the stream of NIVIDA (Chauhan., 2018).
 NVIDIA was crashed down by Qualcomm since Tegra which lacked the presence of the
LTE modem, but recently the company has acquired one but its implementation will

require some time. This is a weakness for the company as the other corporations have
already adopted the modem facility long. Also the network coverage has been increasing
day by day (Fitch., 2019).
 RTX prices are the key reasons for the weakness of Nvidia as the major competitor is
AMD to which there is no counterpart. The biggest weakness of Nvidia is the strength of
AMD. The chips of the Nvidia are powerful yet they are bigger and complex to
understand, while on the other hand the Activision Billizards creates the concept of the
simplicity in catering services to its customers.
Opportunities
Activision Billizards
 The pre own market can be one of the greatest opportunities for the company to flourish.
 At the E3 conference the CEO of the company Bobby Kotick announced that there is a
market of $3 billion that has not been used or participated in. The movement of the
company can be a bad news for many competitors (Mueller, 2010).
 The organization just discharged Guitar Hero for the iPhone. I wouldn't be amazed to see
downsized variants of different recreations making it onto cell phones and iPads, either.
Valve Corp
 The valve corporation has over 20 million users and the more potential to grow in the
gaming industry with the help of the user created mods where the people have the facility
to mods for PC as well (Star, Star & Rutter, 2015). This can be a challenge for the
Activision Billizards and in order to shift the attention of the customers the company
must enter into product differentiation mode. The integration with the gaming giant could
increase the opportunities for the company and create better competition for Nvida, Sony
Corp and especially Activision Billizards.
 The steam sales and more and more PC games can be the only opportunity for the
company to grow its base. In irder to develop the more customer base the Activision
must focus on growing the number of the users and Just like Valve, it should create mini
models.

Sony Corp
 Sony Corp can take an advantage of the it’s movie and the music business along with the
experience in gaming space in order to provide the value content to support and integrate
the product line. The company also supports the four screen strategy which ensures the
concept is equivalently good (Lee, Lin & Yu, 2017).
 The company also possesses the opportunity to enter the healthcare imaging sector in a
very significant manner as through the possible acquisition of the 30% stake in Olympus.
 The company recently bought off its entire Sony Ericson joint venture. This gives the
Sony Company an opportunity to act in an independent manner and showcase the
innovative skills to see a booming phase in the markets of the smartphone and tablet
market (Panamore Institute, 2017).
 Diversification in China and Japan could be the biggest opportunity for the Acitvision
company. With the assistance of the innovation the company can boost the competitive
advantage over the competitors with though the diversification in the new segments.
Nivida Corp
 Nvidia is the leader in the area of the computer graphics majorly used in the PC, mobile
and gaming consoles, and since it had a brand value since the typical historical times it is
a opportunity for the company to grow (Fitch., 2019).
 Introduction of the new products such as SHIELD in TV and gaming markets (Fitch.,
2019). This can again be a heartthrob challenge for the Activision Company as the
company has the robust interest in automobile community and the key growth drivers of
the company are VR, AI and auto drive cars. Hence the Activision must innovate the
existing technology to surprise the existing as well as new customers.
Threats
Activision Billizards
 The competitors are producing the low cost products despite the extreme level of
competition. This attracts the customers and therefore it’s a severe threat to the Activision
Billizards. one such great example is Xaiomi. This company has created a completion

covering not just a niche product but a wider variety of the customers (Ficklscherer, et al
2016).
 The console makers are the publishers of the game itself also the existing sales of the
company on the basis of Guitar Hero are gone long off.
 Little studios can achieve tens or a huge number of individuals through cheap download
to cell phones. More challenge for Activision and shopper's gaming time (Ferraz, et al
2017).
Valve Corp
 The higher competition from all the three brands has washed away the identity of the
Valve Corporation.
 A paradigm shift from the global gaming zone to the publishing is the huge road which
involves the deep research and development consumed all of the earnings due to the
immense competition. Activision must also follow the concepts applied by the valve
corporation.
Sony Corp
 Sony Corporation faces tuff competition from the competitors such as Samsung, Nivida
as the companies are continuously diversifying and improving the new strategies on the
regular basis which is a high level of the threat for the organization (Panamore Institute,
2017).
 The network of the Sony situated online faces the threats from the hackers as one of the
incident has happened in the earlier times where the data of the customer was lost and the
information was tracked down with the use of the credit cards (Dalpiaz, & Parente, 2019).
Nivida Corp
 NVIDIA isn't relied upon to dispatch another age of illustrations cards right now due to
tight supply conditions that would drive it to value its new GPUs at excessive dimensions
(Chauhan., 2018).
 NVIDIA is taking a gander at a comparative course of events, planning to send
completely self-driving trucks in association with DHL and ZF by one year from now. Be

that as it may, the designs authority won't think that it’s simple in this market on account
of the hardened challenge.
 79% of the revenue accounts from China and Taiwan changes in trade policy with China
could hamper the future growth of the revenues (Chauhan., 2018).

References
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https://forums.backpack.tf/topic/5557-valve-corp-swot-analysis/
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ignore.aspx
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gaming-datacenter-businesses-11548690812
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Star, C., Star, K., & Rutter, A. (2015). D1. 1 Market And Competition Analysis.