Table of Contents
2 Nintendo Entertainment Industry. 4
4 Research Question and Objective. 4
6 Competitive Strategy in Game Consoles 5
7 Strengths of the Gaming Consoles Industry. 6
8 Challenges of the Gaming Industry. 6
9.1 Strengths and Weaknesses of Smart Phone Technology. 7
10 The Future Direction of The Gaming Industry. 8
12 Research Findings, Validation and Interpretation. 9
The game control market has increasingly gained recognition in the recent years transforming the mainstream media in contribution and returns as it integrates into media culture (Williams, 2002). Genre-based appraisals of content indicate that the diverse game platforms have contrasting levels of product assortment, determined by contradictory levels of rewards and risks. However, the video game industry seems to be attaining a mature stage with deliberation and incorporation beginning to be uncovered in its phases. The main industry players comprise of Nintendo Co Ltd (Japan), Hyperkin, Sony Corporation (Japan), Microsoft Corporation (US) and Mad Catz Interactive, Inc. (U.S.) who are constantly in stiff competition prompted by the heightened demand for game consoles with wireless connectivity as well as the increasing number of gamers. In 2017, vying game console, which is one of Nintendo’s productions, amassed great sales in the global market reputing the company even further.
Smart phone use has significantly increased globally. In fact, in South Korea, studies confirm that approximately forty million people own a smart phone and are in constant contact with it (Kwon et.al., 2013). It is astounding how such a tiny entity is fabricated on a mobile computing platform yet possesses computing and connectivity capability. The smart phone technology merges the functions of compact digital cameras, GPS navigation units and media players. Moreover, recently smart phones have been equipped with web browsers that allow the standard display of web pages and fast access to Wi-Fi and video games have also been installed in this technology. Apparently, the smart phones have contributed massively in terms of convenience.
Nintendo Ltd is one of the incumbent video industries that has prevailed to great heights springing from its launch of NES in 1985 that instantly attracted large returns (Subramanian, Chai & Mu, 2011). In subsequent years the company has continuously innovated game consoles such as 3DS, Switch and Gameboy (nintendo,2019).
As aforementioned, the video game industry has established substantial contributions in the media industry. However, in comparison to other media industries such as music and movies, limited research studies have been conducted in reference to video games which are currently available on many devices such as mobile devices and consoles as well as numerous channels (Marchand & Hennig-Thurau,2013). As mobile phones increasingly incorporate a wider array of sensory elements, the prospect to leverage those abilities in settings other than telecommunication expands (Liu, Lin, Pan & Lin, 2016).The sensory abilities of smart phones are core elements for modern user interfaces that can perceive motions and actions to enhance human-computer interface in a convenient manner (Silva & El Saddik, 2013). Moreover, this research seeks to find out the contribution of smart phones to the video game industry particularly in Nintendo Company. The heavy reliance of smart phone use in the current society may actually be a breakthrough for the video industry to expand the market. (Hepburn, Boys & Boys, 2009).
What are the disadvantages of portable games consoles as a result of smart phone development?
To identify key players in the video game industry and factors that promote competition amongst them.
Outline the current strengths and weaknesses of the game console industry and the smart phone game industry.
To assess the future direction of the gaming industry.
To assess how portable console games can be integrated with smart phone technology.
The three core players that have dominated the industry since 2001 include Microsoft, Sony and Nintendo and although Nintendo possesses the least market shares, it previously dominated the industry. Most researchers affirm that this was a result of the fierce competition that sprung in 2004 from more affluent rivals forcing Nintendo to adopt new innovative strategies to retain productivity. During that time, the corporation opted to implement a marketing strategy that would distinguish it from its competitors and went on to focus on the abandoned segment of the market: gamers who required an undemanding, more perceptive game experience.
One study confirms that Nintendo’s competitors are potent players in business software and electronics while Nintendo is principally a video game corporation and this further instigated its aggressive determination to be at par with its competitors (Moore, 2016).This proposal is endorsed by Link’s research which states that the company proceeded to launch the video console Game Cube that was succeeded by Game Boy Advance that steered profits significantly (Link, 2012).Nintendo Company is also recognized for its game consoles including SNES Classic and NES Classic. Nonetheless, the corporation’s underrepresentation in smart phone technology with only a few games installed on the IOS and Android platforms threatens its sustenance. Even though, the company has recently launched the Game Boy Casing for smart phone devices, researchers advocate for more games in phone technology to maintain its position in the market.
Evidence from numerous research cite an emergence of competition from the smart phone industry and video consoles arguing that smart phones are integrating innovative new strategies to outperform video consoles in the gaming market (Silva & El Saddik, 2013).Nonetheless, several researches disregard the probability of smart phones outstripping video consoles claiming that advances are currently underway that will improve systems that permit consumers to upload content to social media networks, communicate, stream live content, shop on-line and browse the internet. Hence, it is evident that game consoles still dominate the gaming industry though smart phone technology is also advancing in this field.
There are however, several challenges identified by researchers disrupting video console industry including a combination of the rise in capital costs and reduction in game prices that have impaired the video gaming industry from expanding appropriately. Perhaps the rationale for smart phone industry’s potential to surpass video consoles as confirmed by most research studies, is its capability to provide a platform that allows the free downloading of games. This is actually true because multiple smart phone gamers are attracted by the free games. As a result, the video consoles have faced more pressure to update their services lest the consoles are phased out.
This study states that smart phone interface has become strongly embedded in the contemporary society worldwide as many activities including gaming and social networking can be engaged using this device, however the authors do not specify smart phone’s contribution to the game industry (Hoffner, Lee, & Park, 2016).Another research however, cites that smart phones’ contribution to the game industry by stating that smart phone gaming is one of the most popular mobile entertainment engaged by approximately 42% of users in the global market. The most downloaded applications on smart phones are mobile games, particularly in Europe (Dauriat, et.al., 2011). From the aforementioned studies, it is evident that smart phone gaming industry is rapidly advancing. Likewise, multiple studies report a shift from the mainstream console and PC based platform to smart phone gaming.
A gaming console that facilitates game control for mobile equipment with the capability of displaying video games should include a confinement supporting the video graphics exhibit area, a docking bay and pairing interface tactically positioned in the confined area relative to the exhibit area and a mobile appliance interface suitably located on the housing next to the exhibit area. This gaming console will therefore allow mobile equipment to serve as a video game station and one of the video controller interfaces will be utilized to execute commands.
Smart phones constitute productivity applications such as task managers, calculators and GPS. Furthermore, applications that are not contained in the phone can be downloaded. In addition to this, some smart phones are enabled to print documents with spreadsheets, word processing and PDF software. Smart technology also allows easier and faster email accessibility. Nevertheless, numerous studies stress that smart phones are not replacements of laptops as they cannot manage to perform other tasks such as access all files due to their limited capacity of functionality and features. Hence, there is high probability that smart phones cannot outperform video consoles in the gaming industry from evidence from the literature cited.
The future prospects of the video gaming industry will likely be real virtual reality as well as automatic content generation. The video gaming industry is likely to shift from the fake virtual reality to real virtual reality which interacts directly with the human brain through wireless connections. Essentially, the gaming industry will target to develop more human-interface games. The second notion on automatic content generation will entail creating games that utilize neural networks to perform tasks that generate new terrains, structures and characters. Though currently the technology does not exist, the budding prototypes to aid in the game’s creation are present. To illustrate, a number of projects have accomplished to form new articles for a text-based RPG by use of neural networks. Additionally, the face book “eyescream” generated novel images that were similar to real images by use of neural networks. A combination of direct-to-brain virtual reality, and automatic content generation would revolutionize the gaming industry. Moreover, evidence cited in this research concludes that smart phone industry is likely to shape the gaming industry in future due to its convenience and accessibility which is in conjunction with other studies such as Liu’s study that was earlier mentioned. Furthermore, the current trends already reflect a shift of PC gamers to mobile gaming.
Taking into account that this study seeks to gain in-depth information on the video game system and how and why it developed prompts the need to utilize the case study method to gather information. Moreover, the fact that the study will establish relationships between variables such as portable gaming and smart phone development further necessitates the need to implement the case study design. The most basic initial step will involve defining research questions that should clearly be in line with the purpose of the study so as to logically advance the study in a coherent manner. Subsequently, a case site will be selected which in this case is Nintendo Company. The site is the primary focus of access to the target group hence it is imperative that it aligns with the nature of research objectives and optimizes heterogeneity in the dependent variables. Subsequently, data tools will be formulated, and in this case the interviews will be utilized. The interview will contain both structured and unstructured questions and will be interactive in that both the researcher and respondent will share their views and opinions. To obtain divergent views and opinions from the participants, the study selection will focus on individuals from different departments within the corporation. Data will be collected and analyzed then tested to assess whether the hypothesis is true or false.
The study utilizes the cross-sectional study design to collect information at one encounter with the respondents. No referrals or comparisons will be necessary in this case. The study will encompass a qualitative approach by integrating a combination of surveys and case studies. Surveys will focus on data collection from sub-ordinate staff from different departments whilst the interviews will target those in managerial positions. Questionnaires will be used to collect data from the sub-ordinate staff. The questionnaire format will consist of open-ended questions to acquire a concise perspective on the respondents’ views. Interviews will be conducted to obtain information from high authorities of the Nintendo Company. The questions will be tailored accordingly to provide answers in line with research questions. Concerns pertaining to the achievements contributed by the game market, impact of the already existing games to the success of the company, future prospects to improve the video games and the contributory role of smartphones to the video game industry will be addressed. Furthermore, the researcher will transcribe the information while the interview is still in procession for purposes of proper data recording and accountability. Data transcription will also make it easier for the researcher to refer to the material when compiling data for findings.
Sampling of the respondents will employ a probabilistic sampling approach due to the scarce number of respondents. Permission will be sought from the relevant authorities to allow the probing of management at Nintendo Company. Respondents will also be assured of confidentiality of the responses provided. Findings obtained will be analyzed by SPSS software for purposes of interpretation. The transcribed data will be coded and themes established. Discussions will be derived from the findings in subsequent completion of the analysis. Data validation will be carried out by experts in the Social Sciences Department that will entail critical review of the study.
The gaming industry has become a popular entertainment in recent years contributed by the variety of portable game consoles that have been in the market since two decades ago. The key players in the video game industry including Sony, Nintendo and Microsoft are always updating their services to meet the consumer requirements that keep on changing due to increased demand for more human interface games. Smart phones are convenient and most people are able to access them, as a result most individuals rely on them to perform many tasks. Furthermore, smart phone technology is developing rapidly and more gamers are appreciating the contributions it has made so far in the gaming market especially the platform it offers for gamers to download free games. As a result, there is a shift from video portable console gaming to mobile gaming. Video console companies can therefore integrate mobile gaming as a marketing strategy similarly to Nintendo Company.
