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Sponsorship Research Report
VIDEO GAMING INDUSTRY
Overview Sports are quite important to this lucrative Industry which is made up with a number of key players who dominate the market, there are essentially -4 organizations that hold significant market share in terms of actual game consoles; these being in order of popularity Sony’s playstation, Microsofts X-Box and Nintendo’s gamecube. Sega do produce their Dreamcast machine however they are no longer in production, but games are still available and produced.
The video game console market has had a very interesting year and has come a long way since the introduction of the Atari Home Entertainment System (in the seventies). Both Nintendo and Microsoft introduced their next generation consoles, (Nintndo Gamecube and Microsofts X-Box) last year (actually 001) while Sony has continued to increase the installed base for its PlayStation at an alarming and enormous rate. It seems as expected that Microsoft are leading the innovation race with more features offered at a rapid rate. In fact the X-Box has the capability to produce even better quality games than are actually on offer at the moment . The introduction of plans for online gaming (now in progress) by all three console manufacturers has the potential to transform the market and already has with players able to compete from different states even Countries! This incorporates a potentially untapped sponsorship market.Microsoft’s X-Box are utilized most in this market (I know of at least four interns that already are doing this � a growing phenomenon)
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Then there are a number of organizations that specialize in the games themselves such as EA Sports, Konami, Activision, Eidos, Acclaim, 8 Sports to name a few, it is this end of the spectrum that Disney Interactive work with. These companies also make Gaming software for PC’s but do not actually produce the consoles themselves.
Video game devices are a growing part of the $0 billion U.S. consumer electronics market. More than one in three households have at least one video game device, but there are some signs of market saturation.
ATHLETES BECOMING INCREASINGLY INVOLVED
The Sports video games have enjoyed endorsements from top athletes such as Peyton Manning, Steve Francis, and Derek Jeter to name but a few, all legitimate stars in their respective sports. Indeed many of the players themselves when interviewed often admit how they love to spend their leisure time playing video games, another endorsement if ever there was one! In addition with the latest technology real Major league players such as Latrell Spreewel and Derek Jeter are used in a studio by being hooked up to a computer so their moves can be replicated more realistically for better playability. Furthermore Arizona Diamondbacks pitcher Curt Schilling remains the game’s cover athlete and spokesman for DO High Heat Baseball and actually enjoys a portion of proceeds from the game’s sale going to the Schilling-created charity, Curts Pitch for ALS, which benefits those with Amyotrophic Lateral Sclerosis (ALS). Thus another example of how “involved” the athletes are with this industry.
ANALYSIS
· The Major Players in the field
· Electronic Arts (EA Sports) (Games)
0 Redwood Shores Parkway
Redwood City, CA 4065 Website www.ea.com
o Sports Marketing Activities
Amateur Sports � Title Sponsor EA Round-ball Classic (High School boys basketball all-star game)
Auto Racing � Title Sponsor NASCAR Winston Cup Series EA Sports 500 Award Sponsor NASCAR Winston Cup Series EA Sports Move of the Race Award; Official Licensee NASCAR
Baseball, Major League- Sponsor MLBPA
College- Title Sponsor NCAA EA Sports Maui Invitational (through 00); Founding Sponsor EA All-Stars (exhibition Basketball Team)
College Bowl Games- Sponsor NCAA East-West Shrine Game
Golf- Player Sponsor PGA TOUR (Tiger Woods); Advertiser PGA Advil Western Open; Official Licensee PGA TOUR
Motorcycling- Title Sponsor AMA EA Sports Super-cross Series
o Decision Makers
Chip Lange VP � EA Sports 650-68-78 clange@ea.com
Carolyn FinesteinVP Marketing Communications 650-68-716 cfinestein@ea.com
Glenn Chin Director Lifestyle Marketing gchin@ea.com
Julian Goldberg Director �EA Sports 650-68-76 jgoldberg@ea.com
Brian Movalson Brand Manager
o Outside Agencies
Odiome Wilde Narraway & Partners (Handles Advertising for EA)
John Aldridge Account Director
1000 Sansome St. Ste. 00 San Francisco CA 4111 (p) 415-658-800 (f) 815
· Sony PlayStation (Console)
Regional Offices Andrew House, VP Marketing Website www.sony.com
1 E. Hillsdale boulevard, Foster City, CA 4404 (p) 650-655-8000 (f) 8076
The playstation console also has the advantage of doubling up as a DVD player at no additional cost!
o Sports Marketing Activities
PlayStation
Baseball, Major League- In-Stadium Signage MLB Colorado (Concourse), Minnesota (Home Plate-rotating), Montreal (On-Deck Circle-rotating), Toronto; Advertiser; MLB Toronto
Basketball, Major League- Official Sponsor NBA Toronto; Advertiser NBA Portland
College Bowl Games- Sponsor NCAA Silicon Valley Football Classic
Extreme Sports- Sponsor Gravity Games; Associate Sponsor X Games
Football, Major League- Sponsor NFL San Francisco; Advertiser NFL Seattle
Hockey, Major League- Official Sponsor NHL Toronto; Sponsor NHL Calgary, San Jose; In-Stadium Signage NHL Calgary, Montreal, Ottawa, (Concourse � Dasherboard) San Jose, Vancouver
o Outside Agencies
TBWA Chiat/Day (Handles Advertising for PlayStation
Kristine Mouchamel Management Supervisor
56 Grosvenor, Los Angeles, CA 0066 (p) 10-05-5000 (f) 6000
· Microsoft Corporation (X-BOX) (Consoles/Games)
One Microsoft Way, Redmond WA 805 Website www.microsoft.com
(p) 45-88-8080 (f) 45-6-7
o Sports Marketing Activities
Baseball, Major League- Sponsor MLB Boston, Seattle; In-Stadium Signage MLB Seattle
Basketball, Major League � Sponsor NBA Portland; In-Stadium Signage; NBA Philadelphia (Facia � backlit)
College- Advertiser NCAA Big Ten Conference Basketball Tournament; Broadcast Sponsor/Advertiser NCAA Atlantic Coast Conference (Fox Sports Net)
Football, Major League- Sponsor NBA Portland; In-Stadium Signage NFL Indianapolis (Field Banner). Seattle, Washington (Scoreboard)
Golf- Sponsor PGA AT and T Pebble Beach National Pro-Am, Shell Houston Open; LPGA chick-fil A Charity Championship; Sr. PGA The Countrywide Tradition, Toshiba Senior Classic
Hockey, Major League- Sponsor NHL Tampa Bay; In-Stadium Signage NHL Philadelphia (Concourse Facia-backlit)
Hockey, Junior League- Sponsor WHL Seattle
o Decision Makers
John O Rourke VP/Marketing/Sales � X BOX
X-BOX retails at around $1, an additional $0 is required to convert to a DVD Player (unlike the Sony playstation)
· Disney Interactive (Games and software)
A subsidiary of Disney Enterprises, Disney Interactive deals with mass-market, global development, publishing and distribution of interactive entertainment software. Products are based on the branded content of The Walt Disney Company, including Walt Disney Pictures, Buena Vista Home Entertainment, ABC, ESPN, Walt Disney Attractions and more, and encompass Disney¹s broad range of franchises in feature animation, live-action film, television, sports and theme parks.
Disney Interactive tailors its products for four key segments of the marketplace Learning, Creativity, Games (which encompass Action Games, Junior Games and Family Entertainment) and Sports. The company has established strategic development /publishing alliances with interactive-gaming industry leaders such as Sony Computer Entertainment, Nintendo, Activision, Eidos, Konami, Square, Ubi Soft and others.
· Nintendo Game CUBE (Console)
Nintendo also have Nintendo Entertainment system and Gameboys, however they struggle to match the market share of Microsoft and Sony, but still have games widely available.
· Sega Dreamcast (Console and Games)
Despite Sega’s struggle in the consoles market they do also produce games. To prepare the video game world for this sports assault, Sega has dedicated $0 million dollars solely to the marketing of Sega Sports titles. This marketing campaign includes TV spots in Fox Sports, ESPN, and Monday Night Football as well as long marketing campaigns that will include planned events for Sega Sports video gamers and sponsorship of major sporting events. They did sponsor Arsenal soccer team for three seasons in England.
Microsoft Xbox (est. $00) Most experts echo PC Magazines Michael Ryan in saying the Xbox is the most powerful video game system you can buy; we found at least two reviews in which experts play the identical games on the Xbox, PS, and GameCube, and say Xbox delivers the best performance. The catch? Software makers are still learning how to take full advantage of the Xboxs power, and the games for this system skew toward the teen crowd. According to news reports, Microsoft is under the gun to pump up Xbox sales�so expect to see an advertising blitz this season. Demand exceeded supply last Holiday season, so this year you might actually find Xbox on store shelves.
• Sony PlayStation (est. $00) Game fanatics agree that the best software is made for the PS, though Nintendo is catching up fast with some of its new GameCube titles. The first of the new wave of video game systems, PS is backwards compatible with old PlayStation games, further expanding its appeal (the competing Nintendo GameCube doesn’t have the same backward compatibility). This console can also double as a DVD player right out of the box; Xbox needs a $0 accessory to do this and GameCube doesn’t offer the option.
• Nintendo GameCube (est. $150) This is the best choice if your child is under 15 years old. Reviewers say that for kids (or those who prefer less violent games), GameCube has the most coveted proprietary titles, based on Nintendo’s extensive character library Metroid, Mario, Kirby, etc. The GameCubes controller is also smaller than its competitors, making it more suitable for small hands. Its $50 cheaper than Xbox or PS, but cant play DVDs and doesnt have an on-board hard drive. Also, unlike the PS, the GameCube isn’t backwards compatible with games for Nintendo’s previous systems.
• Nintendo Game Boy Advance (est. $70) Reviewers like CNet agree that the Game Boy Advance�which packs the power of the old Super Nintendo and has a library of close to 1,000 games, thanks to backward compatibility with the original Game Boy�is the best handheld system available. It’s also pretty much the only handheld system available; Nintendo has long since vanquished its rivals in this arena. This is your choice if you or your kids are fans of gaming on the go.
BREAKDOWN AND ANALYSIS OF CONSOLES
BREAKDOWN AND COMPARISON OF SPORTS VIDEO GAMES
GC=Nintendo Game Cube XB= Microsoft X Box PS= Sony Playstation
GBA=Nintendo Game Boy Advance
Bold Type denotes the best- rated console for that game
Note Games appear in order of sales (best first)
Madden NFL 00 (EA Sports) Available GC XB PS GBA
Tony Hawks Pro Skater 4 (Activision) Available GC XB PS GBA
Tiger Woods PGA Tour 00 (EA Sports) Available GC XB PS
NBA Live 00 (EA Sports) Available GC XB PS
NCAA Football 00 (EA Sports) Available GC XB PS
NFL K (Sega Sports) Available GC XB PS
FIFA Soccer 00 (EA Sports) Available GC XB PS GBA
NBA K (Sega Sports) Available GC XB PS
NASCAR Thunder 00 (EA Sports) Available GC XB PS
NFL FEVER 00 (Microsoft) Available GC
Dead or Alive Xtreme Volleyball (Microsoft) Available GC
NHL K (Sega Sports) Available GC XB PS
Paris Dakar Rally (Acclaim Entertainment) Available PS
DO High Heat Major League Baseball 00 (DO) Available PS GBA (next year available for GC and XB)
Acclaim ALL-STAR Baseball 00 (Acclaim Entertainment) Available PS XB
NBA inside Drive (Microsoft) Available XB
Triple Play Baseball (EA Sports) Available PS XB
World Series Baseball (Sega Sports) Available XB PS
Disney Golf (EA Games) Available PS
Hot Shots Golf (Scea) Available PS
Outlaw Golf (Simon & Schuster Interactive) Available XB
Swing Away Golf (EA Sports) Available PS
These are by any means a full comprehensive listing of video games available in the market, however they seem to be the most popular in terms of mainstream use and purchases.
Note 8 sports develop games and are available for the five major sports, soccer, hockey, basketball, and baseball, however these games are only available on the Sony Playstation! Obviously Microsoft make games that are only available for their X Box Console � Integrating at its best!
FACTS AND FIGURES OF INTEREST
· Three-in-five (60 percent) of Americans age six or older, or about 145 million people, say they routinely play computer or video games
· Nearly half of these game players (4 percent) are female
· The average age of computer and video game players is 8 years old
· 61 percent of all game players are age 18 and over
· More than 15 million computer and video games were sold in 1
· Video game sales in 1 grew to $4. billion, a 1.5 percent increase from 18
· PC games sales increased from $1.8 billion in 18 to $1. billion in 1
· Breakdown of 001 US sales Video games 141.5 million
Computer games 58.8 million
· Previous annual US sales (in units)
000 1 million
1 15 million
18 181 million
17 1 million
16 105 million
Sales figures of consoles (00 figures)
· Game Boy Color 116 million
· Playstation 8 million
· Playstation (PS) 0 million
· Dreamcast 10 million
· Game Boy Advance .6 million
· Wonder Swan Color . million
· GameCube 510,000
Further Notes of Interest
· (00) Revenue generated by online console gaming in 00 according to Screen Digest 1.4 billion pounds
· Average time readers of EDGE claimed to spend playing games per week 11 hours 5 minutes
· (August 00) Informa Media Groups forecast for global videogame sales in 00 $1 billion (8 billion pounds)
· (July 00) percentage of gamers who said that they would still be playing video games in 10 years, according to The Interactive Software Association (IDSA) 60 percent
· (July 00) total number of sales generated by the videogame industry during 001 $.4 billion (6.4 billion pounds)
· (June 00) worldwide sales of the Playstation (001/00) 18 million
“Video Games have become a leading form of mass market entertainment as the core user has aged from the teens into adulthood, and millions more casual gamers join the hard core gamers to drive market growth and expansion” Doug Lowerstein(Interactive Digital Software Association)
For investors, for business, and even for national economies, video games aren’t child’s play. They are becoming a dominant medium.” Todd Fishman (Worth Magazine)
CONCLUSION
Overall, this huge industry on the surface does not appear to be losing any momentum! The majority of games are indeed available for all the featured consoles above, it seems EA Sports dominate the market in terms of sports game production. With Sony’s playstation and Microsoft X box cornering the console market respectively, (the closest Country being Australia whose X-Box sales are only 4% behind the Sony Playsations) However Nintendo’s Gamecube is not doing as well but their Gameboy Advance (a hand held console) selling well. These sport’s games themselves are extremely popular with the 16- age group (majority 8yrs so an adult following, with an income) and I believe it would be a good idea to become involved with them via sponsorship or an interactive attraction at the complex. It will provide something for people to do, create exposure for the gaming company/s products at a relatively low investment cost, and provide revenue for us or help improve the O Rays overall experience on game day thus encouraging future attendance!
I have seen this kind of interactive experience work effectively at other venues, for example the HSBC arena housed an interactive section where the ice hockey video game was played. (HSBC is home of the National Leagues Buffalo Sabres) Perhaps we could have a Baseball video game at the stadium and even run mini competitions where lucky fans compete for a prize.
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