Week 2 EOC: Videogames

Video Makers Can’t Dodge Recession

Recession has now reached to the industry of video games. While other businesses have reached several; declines in their sales and their profit the industry of video games has been becoming somewhat successful. Analysts are now predicting a 5% growth from their earnings back in 2008 of 11 million dollars. “Strategic plan establishes what kinds of businesses the company will operate.” (Armstrong 47) Consumers are now waiting for Nintendo, Microsoft, or Sony Corp. to cut some of their prices. The sales for consoles and games for the PC are in competition with the digital games that are now being downloaded from Apply. Most of the games come at a low cost of 99 cents. "It's highlighting the weak months because if people don't really have a reason to go out to the store, they're not," (John Taylor 2) If consumers don’t have a reason to go out and buy something they wont, unless something that catches their eyes comes out. Several executives for videogames are not giving up and remain positive about this industry. “The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. “ (Armstrong 43) Sony and Nintendo are two companies that will not be the ones to have price cuts, and Microsoft is left unknown for now. Since several games have updates or new online features, they can easily be updated making their consumers wanting to keep these games to re-play several continuous times. With new and different updates or new online features, this provides games with much more value and that makes consumers not buy stuff that they do not really need due to the new and different updates and new online features.