LucasArts Entertainment Company Ltd.San Francisco, CA, United States

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LucasArts Competition

Now Viewing LucasArts's competition in: Entertainment and Games Software (primary)

Recent Developments

New Law Combats Entertainment Software Piracy - A US law enacted in October 2008 is expected to make dealing with intellectual property (IP) crimes easier for law enforcement. Improved enforcement of IP laws is expected to boost sales of legitimate entertainment and game software, according to the Entertainment Software Association (ESA). The law provides new money for federal investigations of computer crime and hacking, and calls for cooperation between US and international law enforcement agencies in protecting IP rights.

Wii Popularity Raises Nintendo Sales - Nintendo, a leading player in the US entertainment and game software industry, posted a 20.4 percent increase in sales for its fiscal first half of 2008 (ended September 30) compared to the first half of the previous fiscal year. Unit sales of the company's Wii software in the Americas grew 126 percent between the first half of 2007 and the first half of 2008, outpacing unit sales of Nintendo DS software. Nintendo plans to stick with a strategy of trying to sell its products to as broad an audience as possible, including people new to gaming.

Software Exports Drop Despite Increase in Canadian Demand - US exports of software, including game and entertainment software, declined 10.3 percent in January through August 2008 compared to the same period in 2007. Major US game and entertainment software publishers often get as much as 40 to 45 percent of sales from other countries. Overall sales of software to Canada, the top market for US exports, rose 4.8 percent, but were offset by reduced exports to India, South Korea, and Germany.

Competitive Landscape

Demand is driven primarily by personal income. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies publish a portfolio of titles and have advantages of scale in manufacturing, marketing, distribution, and selling. Small development studios compete through creative designs and by partnering with large publishers.

Entertainment and Games Software Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on electronic entertainment and musical instruments is forecast to grow at an annual compounded rate of 6.1 percent between 2008 and 2013.

Electronic Entertainment Spending Growth Levels

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: New products drive demand
  • High development costs
  • Risk: Slow economy limits spending on non-essentials

Industries Where LucasArts Competes

  • Computer Software
    • Entertainment & Games Software (primary)