| SIC Codes: | 7372 |
| NAICS Codes: | 511210 |
The US entertainment and games software industry includes about 220 companies with combined annual revenue of about $10 billion. Major companies include Activision Blizzard, Electronic Arts, Microsoft Game Studios, Take-Two Interactive, and THQ.
Demand is driven primarily by personal income and gamer demographics. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies have economies of scale in manufacturing, marketing, distribution, and selling. Small companies can compete successfully by developing creative products.
Major entertainment and games software product segments include applications for gaming consoles (about 75 percent of industry revenues), handheld devices (10 percent), and personal computers (10 percent). Console software is made for dedicated gaming devices that work with TVs; major platforms include Microsoft's Xbox, Nintendo's Wii, and Sony's Playstation. The handheld segment includes titles for portable gaming systems such as Nintendo's DS and Sony's PSP, as well mobile phones and other handheld devices. Games in the personal computer segment are designed for use with desktop and laptop PCs.
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