Gaming -- Analysis of pricing strategies and policies in the online and offline and Game Industries' Environments

ACKNOWLEDGEMENT

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DECLARATION

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Abstract

The research focuses on the Analysis of pricing strategies and policies in the online and offline Game Industries. The research reviews a decent amount of literature to properly identify factors and issues involved in the management of such factors, and how engineers can help them.

An online game (or gaming on the internet) is a game playable through a computer network or consoles connected to the internet. Offline gaming are referred as home and personal consumer game machine games and are also known as console games. It is essential to keep in mind that all the games Nintendo launch on their consoles are more expensive as compared to 3rd party software. Additionally companies that launch games on their consoles set prices lower that the prices some of Nintendo's game sell. This is apparent by the sale of Resident Evil Revelation on the 3DS hand held system where the amazing game was sole at the standard 3DS price even though the game was on a 4GB card.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

Online Gaming1

Offline Gaming2

Pricing Policy2

Aim of the research2

Objectives of research3

Research Question3

CHAPTER 02: LITERATURE REVIEW4

Forces that determine the Price5

Pricing strategies6

Pricing Tariffs7

Challenges9

Managing the Winner-Takes-All Dynamics10

Platform competition11

Equilibrium structure of markets13

Supply Chains role in pricing14

Cost of Uncertainty16

Markets are structured17

Nintendo17

Evaluation of Games and their prices19

Capcom20

Resident Evil21

After Sales effect on pricing21

Transactions between the two sides of the market22

Gaming Console Consideration23

CHAPTER 03: METHODOLOGY25

Overview25

Research Design26

Descriptive Research26

CHAPTER 04: RESULT AND DISCUSSION27

Nintendo's defence on pricing28

Demand of the market29

Market Structure31

Video Game Heterogeneity31

Two sided markets and effect on price33

Two-sided market and their effect on Game prices35

Price Structure36

Inefficiency of free entry38

CHAPTER 05: LIMITATIONS OF THE STUDY40

CHAPTER 06: CONCLUSION AND FUTURE RECOMMENDATIONS41

Alternative scenario41

Vertical integration on console price42

Dominant platforms44

REFERENCES46

CHAPTER 01: INTRODUCTION

The research focuses on the Analysis of pricing strategies and policies in the online and offline Game Industries. The research reviews a decent amount of literature to properly identify factors and issues involved in the management of such factors, and how engineers can help them. Primary information was collected via interviews and questionnaires to help shape the findings into an authentic conclusion. To carry out the research, it is important to understand the different type of gaming, and to know the companies who are most prominent in utilizing different pricing strategies, companies such as Capcom and Nintendo...