This post will briefly look at the Micro and Macro environmental factors affecting Game.
Game is a retailer that specialises in the sale of consoles, games for consoles, accessories and merchandise.
Competition
Game has a large number of physical stores which are becoming a more expensive burden on the business. theboar.org (2020) says “GAME still faces significant competition, not least from Amazon and digital sales. The problem is one of pricing and convenience.”
Game has an issue with being undercut by the monolithic ecommerce retailers like Amazon who can provide cheaper prices due to their lack of physical presence.
Suppliers
The Game industry is dominated by PC, Playstation, Xbox and Nintendo. All of these variations of hardware now have games available for download through a virtual store. This increased use of downloadable or even streamable games poses a massive threat to Game’s business.
This year Microsoft and Sony released the new respective versions of their games consoles each with a “diskless” variant. This action massively promotes digital sales.
Pandemic effect
Covid-19 has had a positive impact on the gaming industry in terms of growth. The telegraph (2020) has found sales have grown by 55% since 2019 hitting a value of £1.8 billion in 2020 and expected to hit £2 billion by 2021. If game can capitalise or adapt for the various industries growing out of the video game sector they stand a chance to stay relevant.
Other factors
We have covered some of Game’s main concerns which will affect both its physical stores and its digital store.
Games’ demographic over the last couple of decades has increased in variation with more and more people growing up with video games as a hobby. However Game has control on how it appeals to each demographic by dividing its website into a few main sections and that is by which platform you use whether that is through a Nintendo console, PC, Xbox or Playstation. This allows for a simple customer journey through the website to find relevant products and games that the consumer is after.
Adaptation
Game in recent years has begun to adapt to the changing market going digital by hosting events and creating gaming lounges were a ‘setup’ is rented out to an individual to play games. This is done in most part by the larger stores but increases a customers intrinsic value. Events consist of competitions or ‘esports’ that are hosted by Game. All adding value to their brand.