Content1. Case Introduction21.1 Emerging of videogame industry21.2 Competition of Nintendo and SEGA in USA market21.3 Dramatic advance in videogame industry21.4 New level of realism31.5 New level of realism causes concern52. Situational Analysis52.2 Industry situation53. Problem Statement84. Alternative Solutions85. Recommendation9Conclusion9Reference101. Case Introduction1.1 Emerging of videogame industryThe videogame sector is the fastest growing entertainment industry and second only to music in profitability. Videogames were first introduced in the 1970s. Personal computers just began to become widely available. Along with personal computers in 1972 first video game consol was released.
Industry grew with the advancement of computing technology. By the end of 1970s video games had become the most preferred childhood leisure activity for young people. Because videogames is almost only one kind of entertainment where person can actively interacts. USA was not exception in this pattern.
1.2 Competition of Nintendo and SEGA in USA marketNintendo was introduced in video game industry in USA in 1985 with a Nintendo Entertainment System an 8-bit video game console.
English: A Nintendo 3DS in Aqua Blue, photo taken ...
English: An NTSC Sega Dreamcast Console and PAL Co...
English: The Sega Master System video game console...Its appearance was accompanied by Super Mario Bros., the best-selling video game of all time.
SEGA presence in USA was established in 1986 with Sega Master System an 8-bit console.
Both companies were originated in Japan and came into America to take advantage of the growing videogame market.
In 1989 SEGA come up with their Genesis consol a 16-bit video game console.
Two years later in 1991 Nintendo launched their 16-bit game console known as Super Nintendo Entertainment System.
As for SEGA in 1991, in order to rival Nintendo Sega re-branded itself with a new game and mascot, Sonic the Hedgehog. With his hip attitude and style, he was marketed to seem "cooler" than Mario, Nintendo's mascot.
1.3 Dramatic advance in videogame industryThis ongoing competition between two leaders - Nintendo and SEGA - made a significant progress...