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SWOT
Analysis
We present a SWOT analysis
indicating the situation of the
company in its industry context
Strengths
the company is recognized as the market
leader and its game sagas are among the most
purchased games in the world each year.
It also has a very loyal customer base.
Opportunities
the release of the ninth generation of consoles is
expected to have a great impact on revenues especially
in the regions where the company is more present (North
America and Europe).
Deals with Microsoft and Sony to sell their games in
combination with the new consoles are expected.
New consoles will allow better quality of the games and
experiences for players, allowing for increases in revenue
(through better pricing and incentives to purchase
expansion packs that complete the experience) and
fostering loyalty.
Weakness
consumers have a high level of exigency for
the games and complaints about some
characteristics of the new releases that
potentially harm sales are common.
The presence of the company in Asia-Pacific,
where customers are easier to monetize with
in-game purchases, is relatively low compared
to its presence in other regions.
Threats
The market has very big competitors. In mobile games,
there is fierce competition of Tencent, that domains that
market and continues to grow its influence. In the PC
market, League of Legends continues to be the most
popular game.
As well in the revenues generated globally by esports.
Another challenge is that the impact of the new
generation of consoles is expected to be shared by
various important competitors in the US that can reduce
by much the share of the extra revenue the company will
obtain.
Finally, the introduction of new regulation in China aiming
at decreasing the time individuals and especially children
spend playing, could represent a decrease in revenues
and opportunities to expand.