Essay

Executive Summary 1

1. Market Definition 2

INTRODUCTION 2

MARKET SECTORS 3

Console Versus Hand-Held 3

Hardware Versus Software 3

By Proprietary System 3

MARKET POSITION 4

Table 1: Position of Electronic Games in Consumer Spending (Ð'Јbn and %), 1999 4

MARKET TRENDS 5

Advances in Console Processing Power 5

Other Technological Improvements 6

Development of Home Computing 6

Trend to Market Concentration 6

2. Market Size 7

THE TOTAL MARKET 7

Table 2: The UK Electronic Games Market

by Sector by Value (Ð'Јm at rsp), 1996-2000 7

BY MARKET SECTOR 8

Table 3: The UK Electronic Games Market

by Sector by Value (Ð'Јm at rsp), 2000 8

Consoles Versus Hand-Held 9

Hardware Versus Software 9

Peripherals and Accessories 10

SOFTWARE SECTORS 10

Software Prices 10

Software Genres 11

Table 4: Genres of Electronic Games,

2000 11

LEADING GAMES SYSTEMS 13

Console Games 13

Table 5: Market Shares for Console Systems

Ð'-- Hardware and Software by Value (%),

2000 14

Hand-held Games 14

PC Games 14

A GLOBAL PERSPECTIVE 14

Table 6: Imports of Electronic Games by Country (%), 1997 and 1999 15

3. Industry Background 16

RECENT HISTORY 16

Console Games 16

Other Formats and Technologies 16

Market Growth 17

INDUSTRY CONCENTRATION 17

DISTRIBUTION 18

Table 7: Retail Distribution of Electronic

Games by Value (%), 2000 18

Retailers by Sector 19

Other Distribution Aspects 20

TRADE ASSOCIATIONS 20

European Leisure Software Association 20

British Toy and Hobby Association 20

Scottish Games Alliance 20

4. Competitor Analysis 21

THE MARKETPLACE 21

MARKET LEADERS AND THEIR

BRANDS 21

Table 8: Selected Leading Suppliers to the Electronic Games Market by Turnover (Ð'Јm), 1999/2000 22

Leaders in Consoles and Hand-Held

Games 22

Sony Corporation (Japan) 22

Company Structure 23

Table 9: Divisional Structure of Sony Corporation (Sales in Ð'Ґm), 1998/1999 23

Brands in Games 23

Financial Results 24

Table 10: Sony Corporation Games Division Sales (Ð'Ґm), Year Ending March

1995-1999 24

Financial Results 24

Nintendo Company (Japan) 25

Company Structure 25

Brands in Games 25

Financial Results 25

Sega (Japan) 26

Company Structure 26

Brands in Games 26

Financial Results 26

Leaders in Games Development and

Publishing 27

Table 11: Leading Publishers of Electronic Games by Country, 2000 27

Electronic Arts Ltd 28

Financial Results 29

Eidos PLC 29

Financial Results 29

Other Games Publishers 29

Arcade Games Suppliers 30

ADVERTISING AND PROMOTION 30

Table 12: Main Media Advertising

Expenditure for Electronic Games (Ð'Ј000),

Year Ending September 1997-2000 30

Table 13: Main Media Advertising

Expenditure on Leading Brands of

Electronic Games (Ð'Ј000),

Year Ending September 2000 31

5.