Georgia Tech University The Future Market Attractiveness Paper

I’m working on a marketing discussion question and need a reference to help me understand better.

1. Evaluate thefuture market attractiveness of the following in terms of size, growth,profitability, and competition:

• VideoGames
• Casualand Social Games
• MobileGames
• MassivelyMultiplayer Online Games (MMOG)

2. What are thestrengths and weaknesses of T2 relative to these markets?

3. How should T2approach the changing video game market? Consider three options:

• T2should focus on its core business
• T2should experiment with new market(s). Indicate which market(s) and how toexperiment.
• T2should pursue new markets aggressively. Indicate which market(s) and howto pursue.

Notes/Tips

• Toaid in your quantitative analysis, open an attached excel exhibits
• InExhibit 11, this is an online survey of consumers, not a survey of onlinegamers. So, 10% of consumers are“hardcore,” as the case text suggests, not 10% of online gamers. Exhibit11 excludes the 33% of consumers who do not play video games (case p. 5).
• Forthe purposes of discussion, you may assume that there are 235 millionconsumers in the U.S. (source: US Census Bureau, 2010 population >= 18years of age).
• Howdo different types of games make money? Consider both fixed and variablecosts.
• Ithelps to construct an income statement for video games based on Exhibit 6.Note, wholesale price in Exhibit 6 is the publisher’s price (e.g., T2) tothe retailer. The manufacturer royalty is the license fee the publisher(T2) pays to console manufacturers (e.g., Microsoft, Sony). All costs inExhibit 6 are part of cost of goods sold, i.e., they don’t account forSG&A, R&D, or other operating costs.
• Whatare the financial and implementation implications of your choice inquestion 3?
• CarlIcahn is an investor with a reputation for buying substantial stakes inorganizations and then putting management under intense pressure toquickly increase shareholder value.