Abstract
Unlike in other electronic industries such as PC, Camera, Smartphone etc only 3 majors companies lead the gaming console market: Microsoft XBox, Sony Playstation and Nintendo Wii. This industry has become more profitable year over year, but remain a really competitive business where companies have to be extremely responsive and innovative to survive. We have seen over the last decade one of the major actor of the industry, Sega, become the perfect example of a market leader which wasn't enough efficient in its business model and which has not been able to stay in the competition. Sega bankruptcy is also due to the arrival of Microsoft with the XBox in 2001. The PC worldwide leader had enough power and resource to enter in the gaming console market and become quickly a major leader. They take the opportunity to compete with already known companies like Nintendo and Sony.
Microsoft new entrance was really successful and the gaming industry is now an important part of Microsoft revenues. Regarding this last 15 years, we see that this market is really volatile and each of these 3 main actors must have different strategies in order to keep their market share. In this paper, we will provide a global industry analysis through PESTEL and Porter model. We will next analyze the value chain of the 3 companies and compare their strategy to see what is the key of success.
