Question

Your task regarding the capstone project would be analysis of Usa and if it is a good market for gaming consoles and weather the company should launch there product over there

Answer 1

The united states gaming console & accessories market is consolidated due to the presence of very few global vendors who hold a high market share in the United States region. The leading players are focusing on technological innovations. product differentiation, and pricing strategy, which are the major factors the vendors usually compete on. Key players are Sony Corporation, Microsoft Corporation, etc.

United States Gaming Console & Accessories Market is expected to reach a CAGR of 3.5% during the forecast period 2020 - 2025. Console owners always look keen to upgrade with the next generation. New consoles may offer a higher frame rate and advanced visuals to attract customers in the coming future. Also, the introduction of new consoles with wireless connectivity will provide a new trend for the gaming console market in the United States.

April 2020 - Sony revealed details about its new PS5 controller and announced that it has starting to ship the controller to game developers. The new DualSense wireless controller has more immersive 3D audio, improved tactile sensations via haptic feedback, such as rumbling and shaking, so users can better feel what's going on within a game. The new controller also has built-in microphones for quickly chatting with friends, although Sony recommends relying on a headset for longer conversations.

• Launch of new gaming content with high graphic requirements​ is driving the market. Console gaming is in the transition to on-demand graphic content, and this transition has already begun. Microsoft announced the launch of Xbox Series X (the successor of its range-topping Xbox One X gaming console). It will pack vastly more powerful hardware, adding a 4K gaming experience at up to a mind-boggling 120 frames per second, support for gameplay with variable refresh rate, compatibility with 8K displays.
• Integration of newer technologies Like 3D and AR/VR gaming​ is driving the market. The gaming console is no longer limited to characters fighting battles, completing missions, and conquering foes in two-dimensional space. Now, there’s virtual reality where technology meshes video games with the real 3D world. Diminishing the lines between fantasy and reality, VR is helping create gaming worlds that are more realistic and immersive for today, technology-obsessed gamers. Oculus in the United States sees its future in cordless, self-contained headsets that operate like gaming consoles. This standalone Quest virtual reality headset has 80 percent media and 20 percent gaming, where the Oculus Quest is emphatically gaming-focused.
• Further, the low supply chain distribution due to coronavirus pandemic could challenge the market growth currently. Nearly 90% of video game consoles imported into the United States in 2019 were manufactured in China. Many United States gaming companies, especially those that rely on Chinese manufacturers to produce their products, continue to have supply chain disruptions. These include Nintendo Co. Ltd., which is currently struggling to meet the demand for its Switch consoles in the United States. Most of the Switch’s components come from some of the factories in Wuhan, China. Also, Facebook Inc. is facing severe shortages of its Oculus virtual reality headsets in the United States.
• Further, cloud gaming service challenges market growth. Though multiple services are currently available, Google’s debut entry into the gaming landscape with the release of Stadia marks the first solely dedicated cloud gaming device, without the need for a console. Buying a new console certainly warrants a financial commitment, but Stadia’s USD 119 price tag gives it an edge against the competition. Also, other players are focusing on providing cloud servicing, which restraints the market.