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The computer gaming industry is a dynamic and ever-changing environment. There have been many drivers within this industry that has forced companies to constantly adapt to new market criteria. In this assignment I will utilise marketing models to examine the micro and macro environments of the computer gaming industry and outline the changes that have taken place since the 1970’s. 1970-1980 There has been much controversy over who created the first video game. William Higginbotham, Ralph Baer and Nolan Bushnell all vie for this title. In 1972 a Japanese company called Nintendo distributed the “Odyssey”; this was the first commercially available home gaming console. In 1975 Nolan Bushnell and Atari developed “PONG”; it was the first commercially successful gaming console. The system was commercially available through the retail chain Sears in 1975. In 1976, Bushnell sold Atari to Warner Communications for an estimated $32 million. While part of Warner, Atari achieved its greatest success, selling millions of “Atari 2600” consoles at a cost of $200 per unit. At its peak, Atari became the fastest-growing company in the United States. In 1977, the video game industry crashed. Many attribute this industry break-down to the market saturation of Pong games. Atari managed to survive. By 1978, Atari had sold 35,000 machines, and possessed two buildings and 150 employees; Atari had matured into a $400 million company. Later in 1977, Nintendo releases the “Colour TV Game 4” and 6, followed by the “Colour TV Game 15” in 1978. These releases announced Nintendo's presence as a heavyweight in the industry - and as possible future threat to Atari. The computer gaming industry was starting to dev ...