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Video Gaming Report
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Sponsorship Research Report VIDEO GAMING INDUSTRY Overview: Sports are quite important to this lucrative Industry which is made up with a number of key players who dominate the market, there are essentially 3-4 organizations that hold significant market share in terms of actual game consoles; these being in order of popularity Sony’s playstation, Microsofts X-Box and Nintendo’s gamecube. Sega do produce their Dreamcast machine however they are no longer in production, but games are still available and produced. The video game console market has had a very interesting year and has come a long way since the introduction of the Atari Home Entertainment System (in the seventies). Both Nintendo and Microsoft introduced their next generation consoles, (Nintndo Gamecube and Microsofts X-Box) last year (actually 2001) while Sony has continued to increase the installed base for its PlayStation 2 at an alarming and enormous rate. It seems as expected that Microsoft are leading the innovation race with more features offered at a rapid rate. In fact the X-Box has the capability to produce even better quality games than are actually on offer at the moment . The introduction of plans for online gaming (now in progress) by all three console manufacturers has the potential to transform the market and already has with players able to compete from different states even Countries! This incorporates a potentially untapped sponsorship market.Microsoft’s X-Box are utilized most in this market (I know of at least four interns that already are doing this – a growing phenomenon) Then there are a number of organizations that specialize in the games themselves such as EA Sports, Konami, Activision, Eidos, Acclaim, 989 Sports to name a few, it is this end of the spectrum that Disney Interactive work with. These companies also make Gaming software for PC’s but do not actually produce the consoles themselves. Video game devices are a growing part of the $90 billion U.S. consumer electronics market. More than one in three households have at least one video game device, but there are some signs of market saturation. ATHLETES BECOMING INCREASINGLY INVOLVED The Sports video games have enjoyed endorsements from top athletes such as Peyton Manning, Steve Francis, and Derek Jeter to name but a few, all legitimate stars in their respective sports. Indeed many of the players themselves when interviewed often admit how they love to spend their leisure time playing video games, another endorsement if ever there was one! In addition with the latest technology real Major league players such as Latrell Spreewel and Derek Jeter are used in a studio by being hooked up to a computer so their moves can be replicated more realistically for better playability. Furthermore Arizona Diamondbacks pitcher Curt Schilling remains the game’s cover athlete and spokesman for 3DO High Heat Baseball and actually enjoys a portion of proceeds from the game’s sale going to the Schilling-created charity, Curt's Pitch for ALS, which benefits those with Amyotrophic Lateral Sclerosis (ALS). Thus another example of how “involved” the athletes are with this industry. ANALYSIS · The Major Players in the field · Electronic Arts (EA Sports) (Games) 209 Redwood Shores Parkway Redwood City, CA 94065 Website: www.ea.com o Sports Marketing Activities Amateur Sports – Title Sponsor: EA Round-ball Classic (High School boys basketball all-star game) Auto Racing – Title Sponsor: NASCAR Winston Cup Series EA Sports 500: Award Sponsor: NASCAR Winston Cup Series EA Sports Move of the Race Award; Official Licensee: NASCAR Baseball, Major League- Sponsor: MLBPA College- Title Sponsor: NCAA EA Sports Maui Invitational (through 2003); Founding Sponsor: EA All-Stars (exhibition Basketball Team) College Bowl Games- Sponsor: NCAA East-West Shrine Game Golf- Player Sponsor: PGA TOUR (Tiger Woods); Advertiser: PGA Advil Western Open; Official Licensee: PGA TOUR Motorcycling- Title Sponsor: AMA EA Sports Super-cross Series o Decision Makers Chip Lange: VP – EA Sports 650-628-7228 clange@ea.com Carolyn Finestein:VP Marketing Communications 650-628-7136 cfinestein@ea.com Glenn Chin: Director Lifestyle Marketing gchin@ea.com Julian Goldberg: Director –EA Sports 650-628-7236 jgoldberg@ea.com Brian Movalson: Brand Manager o Outside Agencies Odiome Wilde Narraway & Partners (Handles Advertising for EA) John Aldridge: Account Director 1000 Sansome St.
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