| SIC Codes: | 3944 |
| NAICS Codes: | 339930 |
Companies in this industry manufacture electronic toys and games, including video game consoles. Major companies include systems makers Microsoft, Nintendo, and Sony, as well as peripheral providers such as Logitech and Mad Catz.
Demand is driven by personal income and product innovation. The profitability of individual companies depends on effective marketing, competitive product design, and manufacturing efficiency. Market success drives additional revenue via royalties paid by third-party game developers. The industry is highly concentrated: the top three companies dominate.
Major products are video game consoles, portable players, and peripheral hardware. Video game consoles are computers specially designed to deliver entertainment and game software, using a TV as a monitor. Video game console sales consist of three competing product lines: Sony's PlayStation, Microsoft's Xbox 360, and Nintendo's Wii. Portable players are handheld gaming devices, like the Nintendo DSi and Sony PlayStation Vita. Peripheral hardware includes devices that elevate the human-machine interaction (HMI) such as controllers, joysticks, and driving wheels. Peripherals also include upgrades to core products, such as larger hard drives, additional memory, and wireless connectivity devices.
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