Question

Hello, I am having a hard time being able to fully understand how firm strategy, technology and investment affects the emergence of the digital gaming industry? Please go into great detail.

Answer 1

Firm strategy in terms of marketing and looking at the right demographics affects the gaming industry as firms usually tend to go for youngsters who consider their favourite past-time to be gaming. So a firms strategy in terms of marketing the products to the right target audience by looking at advertisements in movie threaters which attract a lot of youngsters, then amusement parks and collaborating with famous movie stars who correlate with the same demograhic.

Technology affects the emergence of the digital gaming industry in several ways as it is the key aspect driving the growth for the industry. Without technology there would never be a digital gaming industry. Thus the more advancements in technology and the more real world experience players get, the more the industry emerges, as it turns more interactive and state of the art.

Investments play a key role in gaming industry as gamers need money to focus on giving the product to a larger audience, without investments they won't get the scale to provide the product on a large scale to several players. Thus the amount of investments play a key role in emergence of this industry. If it increases exponentially, it means they expect the demand to grow and earn higher returns.