Feasibility Study of Investing In the Videogame Market
Abstract
It is the purpose of this report to analyze the video game market from a financial analyst standpoint. In doing so, I claim to help potential investors make a decision as to which company to invest in, based upon their videogame products.
Introduction
As the Christmas season quickly approaches, there is a large and wide scale effort by every company to have to newest if their product lines under the trees in as many homes as possible. And on the same note, investors are always looking to make a buck, whether its short-term or long-term. In the last 20 or so years, the video game market has really come into its own. Having surpassed the Hollywood movie markets in terms of yearly revenue, there is a lot of room to made for all kinds of consumers, fans and investors.
It is the point of this feasibility study to guide its investing reader towards the best and easiest possible solution that should yield the biggest return value, and continued growth of each stock within the video game market. Within the study we shall analyze the three biggest video game hardware makers: Sony (Playstation 2), Microsoft (Xbox) and Nintendo (GameCube) and what they have going them in terms of both sales, popularity, price, peripherals, games, and third-party support.
Within the developed report, we unravel difficulty behind investing in this market by looking at the issue through both a business (financial) standpoint and a fan based one. It is not merely a sure shot with investing in the company with the most sales, or the one with the most money, even if those are important factors.
Scope:
Because the majority of the companies studied here develop products other than videogame consoles, it would be difficult to form and all encompassing financial analyzation of each company in their entirety. So in light of that difficulty (and size), this study has been limited to each of these companies individual video game sections and subsidiaries. While overviews of each company are given, this is merely to provide the reader with some basic understand of where the company has been, its support, how long its been around and where its likely to go.
In addition, the criteria are also limited to the constraints of the videogame market and business. Each of the three "major" hardware systems (Sony Playstation 2, Microsoft Xbox, and Nintendo Gamecube) will be limited to their sales performance since their respective launches, Games (quality/quantity), Prices (cost), Popularity (fan support), Peripherals (online features, controllers etc..), and Third-Party game support (game developers), and Hardware Performance.