DEVELOPMENT AND MARKETING OF INTERACTIVE ENTERTAINMENT SOFTWARE

Abstract

This paper examines the entertainment software industry within a market perspective. It addresses marketing issues such as acquisitions, mergers, franchising, direct investment, and collaborative arrangements, in an industry where there is significant change in business activity. New entrants in this highly competitive and high value market are identified as being more likely to be developers rather than publishers. Consumer spending in Europe alone for games and interactive entertainment is expected to rise to US $6.1 billion within three years, and by 2002 on-line game players are expected to number five million. Trends point to the income from computer games software and video games surpassing major box office receipts of the motion picture industry. Markets are also emerging to satisfy new classes of consumers both in Europe and in Asia.